Cap and Trade will Harm Energy Consumers  Carbon trading would harm smaller and start-up business to a significant extent. It is easier for wealthy companies to reduce their carbon consumption as they have a greater level of wealth and thus a greater ability to do so. As such under a market mechanism they would have more credits. Poorer businesses would have to buy carbon credits from the richer ones, compromising competitiveness; in addition, small business parks and areas attractive to start-ups would potentially become sinkholes for pollution under the proposition. The resolution could undermine the efficiency and profitability of small but agile engineering and manufacturing firms, such as the mittelstand businesses that have recently flourished in Germany.  The volatility of cap and trade markets means that firms would have to insure against the markets turning against them. In practical terms, this means that following the implementation of a cap and trade scheme firms would have to significantly increase fuel prices in order to hedge against the possibility of the market turning against them and harming their company. As such even if cap and trade is a more “efficient” system it still harms consumers significantly.