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| -Lurid Crime Tales- |
| Who is cashing in on carbon credits? |
| 2009-12-07 |
| The global carbon credit market will grow in leaps and bounds if government leaders attending this week's climate change conference in Copenhagen commit to stiffer reduction targets for CO2 emissions. The value of the carbon market--currently worth as much as $126-billion--may grow to as much as $1.9 trillion by 2020. There is a sucker born every millisecond. To help keep track of dealings and hold accountable parties that are buying and selling these carbon credits, Probe International has created an interactive Carbon Credits Database. The database provides a comprehensive list and associated documentation of all the projects around the globe that have received carbon credits through the UN's Clean Development Mechanism (CDM). CDM actually means, Collect Dummy's Money Carbon credits are quickly becoming a popular tool for both governments and private parties to offset their "carbon footprint." Even rock stars buy them to "green" their image and assuage anxious fans who fear planetary damage from energy intensive concerts. But whether carbon credits will save the planet is doubtful. Indeed, growing evidence suggests they do harm. Like Medieval indulgences. Nothing new under the sun. Except it was the Church then, now it is the UN and Gaia. Officially, carbon credits, specifically those issued through the CDM, allow companies or governments in the developed world to "offset" their carbon emissions by financing "green" or carbon reducing projects in the developing world. This market, supporters claim, acts as an efficient way to cut global carbon emissions. Everyone fixates on carbon, but there is a lot more to the responsible stewardship of the environment than playing around with carbon. But, in reality, as Probe's carbon credit database shows, all is not well on the carbon-trading front. Carbon credits are financing projects such as hydro dams that are causing environmental and social problems of their own, while discouraging developing nation governments from introducing more stringent national pollution standards. Moreover, carbon markets seem especially prone to fraud and organized crime. This summer, for example, officials in the UK discovered an alleged $60 million fraud involving the trading of carbon credits. And Peter Younger, an environmental crimes specialist at Interpol warned, "there will be fraudulent trading of carbon credits. Absolutely, organized crime will be involved," he added. Ah, business opportunities in a green environment. Cue Al Gorilioni. If organized crime and environmental damage aren't enough to cast a shadow over carbon credits, there is the added problem that carbon credits are a highly vulnerable asset because governments determine the value of CO2 by fiat. That is a guarantee of a disastrous scheme right there. Government manipulation of the carbon market could leave investors holding devalued assets. Or, if investigations into the recent leaked emails--known as "Climategate"--conclude that the climate data has indeed been distorted and that the scientific basis for man-made global warming is unfounded, governments may retract regulations that created the carbon credits in the first place. Either way, investors in carbon credits are in a high-risk market. For the details of CDM carbon credits, you can go directly to our carbon credit database. Things you should know about carbon credits: China has received almost 50 percent of all carbon credits issued through the CDM. These credits are worth $3.2 billion at current prices. China has also received around 4 million CDM carbon credits worth $75 million at current prices and used the funds to build 47 new dams. China has received nearly 8 million credits for wind projects, worth $153 million at current prices. An estimated $2.5 million of these wind credits are now under review by the UN because they may not have been eligible. And if the wind credits are not eligible, will China give them back? Wotta joke. India has received 20 percent of all carbon credits issued through the CDM. These credits are worth $1.9 billion at current prices. Together India and China have received around 68 percent of all carbon credits issued through the CDM, worth $4.6 billion at current prices, and used them to build 70 new dams, more than 100 wind projects and more than $3 billion worth of hydrofluorocarbon-23 (HFC-23) projects--a byproduct in the manufacturing process of HCFC-22, which is a gas used as a refrigerant. |
| Posted by:Alaska Paul |
| #10 :-) EC |
| Posted by: Frank G 2009-12-07 18:51 |
| #9 DEAR SIR I AM A FORMER SENIOR REPRESENTATIVE OF THE SOVIET UNION. RECENTLY I DISCOVERED 1 BILLION CARBON CREDITS STASHED AWAY IN A BANK VAULT... you know the rest... |
| Posted by: European Conservative 2009-12-07 18:41 |
| #8 Cornsilk Blonde, I agree. I have always laughed at how Liberals bashed the supposed intent of Conservatives when they do things, holding themselves up as Godly because their intent was so pure. I always felt it was a foolish way to look at the world. If it works, it works. Who cares what the intent was. Now I understand it was all a smoke-screen. I'm totally pessimistic about the intent of anyone in our political class. |
| Posted by: rjschwarz 2009-12-07 17:13 |
| #7 more than $3 billion worth of hydrofluorocarbon-23 (HFC-23) projects--a byproduct in the manufacturing process of HCFC-22, which is a gas used as a refrigerant. One of the worst scandals, which hardly anyone knows about, is that HFCs were mandated by that wonderful model for international cooperation (endsarc) the Montreal Protocol to replace (supposed) ozone depleting CFCs. |
| Posted by: phil_b 2009-12-07 16:31 |
#6 Money quote from Deacon's link:The irony, Michaels says, is that the famously leaked e-mails from the Climate Research Unit show it is not clear what the climatic effect of the permits is in the first place. |
| Posted by: Alaska Paul 2009-12-07 16:12 |
| #5 rj, there's one huge problem with your idea....not as much opportunity to skim some of that money as there is with "credits". |
| Posted by: Cornsilk Blondie 2009-12-07 13:36 |
| #4 Sorry, I thought "fraudulent trading of carbon credits" was redundant. It's ALL fraudulent. |
| Posted by: mojo 2009-12-07 12:59 |
| #3 If the UN was serious about the environment they'd put forth a policy to buy up vast tracts of jungle to prevent deforestation, habitat loss, and species becoming endangered. They'd spare all those massive carbon sinks. Heck, NGO's could do much the same thing, if they really cared. Instead we have carbon credits in which a grove of trees is planted and then the credits sold off to a dozen people so they can believe they personally are responsible for the grove. |
| Posted by: rjschwarz 2009-12-07 12:40 |
| #2 Forgot the link. |
| Posted by: Deacon Blues 2009-12-07 12:38 |
| #1 The Russians are threatening to dump a boatload of carbon credits on the market. Won't that be a hoot. |
| Posted by: Deacon Blues 2009-12-07 12:37 |