A trip to Pittsburgh has convinced me that the Carbon Economy is real.

The defining feature of this economy is that manufacturers, indeed any business, will soon be paying for carbon. Want to make steel, electricity or cars? Companies will soon have to pay for the right to emit the carbon required to make those products. With President Bush calling for the growth in US carbon emissions to peak in 2025, the only real debate seems to be how soon this happens.

Let's put this issue in more concrete terms. The market price to emit a ton of carbon in Europe is now about $40 a ton. The US emits 1.9 billion tons of carbon a year. At today's market price those emissions would cost about $76 billion a year.

That's a huge market and companies I talked with in Pittsburgh already see the opportunity to supply the technology needed to manage and reduce carbon emissions. Frankly, I thought Pittsburgh might be behind the curve. Now I think the city has a real chance to emerge as a leader in the carbon economy.