Certified Emission Reduction

Green ratbags dudding elderly and bewildered out of hard earned cash

Is there no limit to the predations of green ratbags. It seems they have been preying on the elderly and dudding them out of cash selling worthless carbon credits.

I was expecting to see Kennedy Graham’s name in the list of deluded pensioners caught up in another green scam.

More than a dozen companies that “preyed on older people” through carbon credit scams have been closed by the industry’s regulator, a minister has announced.

Nineteen firms that attracted investments of nearly £24m from more than 1,500 people by offering “worthless” carbon credits – or Certified Emission Reductions (CERs) – were wound up by the Insolvency Service in the last 15 months.

Consumer minister Jo Swinson said the offending companies made money from carbon credit scams, which see small investors promised huge returns for trading permits that offer corporations the right to emit one tonne of carbon dioxide.  Read more »

Chart of the Day

Carbon markets are rooted. Is anyone surprised at this graph?

WHAT would you say about a market that has helped reduce carbon emissions by a billion tonnes in seven years, attracted $215 billion of green investments to developing countries (more than any private environmental fund) and cut the cost of climate-change mitigation by $3.6 billion? The answer, to judge by a United Nations panel looking into the workings of the Clean Development Mechanism (CDM) is: you’d say it is a shambles.

The CDM was set up under the Kyoto protocol to get developing countries to do their bit to reduce carbon emissions. The mechanism allows projects that reduce greenhouse-gas emissions in poor countries to earn a carbon credit (a “certified emission reduction”, or CER) for each tonne of carbon dioxide avoided. The credits can be sold to firms in rich countries which are obliged under Kyoto to cut their emissions. The idea was to encourage carbon saving where it was cheapest (ie, in developing countries), increasing efficiency.

The trouble is that the supply of credits has far outstripped demand. The one-billionth CER was issued on September 7th. But the largest greenhouse-gas emitters either did not ratify the Kyoto protocol (America) or were not obliged by it to cut emissions (China and India). That has left Europe as the main source of demand for credits, and the CDM has become a sort of annex to Europe’s cap-and-trade scheme, the Emissions Trading System. But the euro crisis has reduced industrial activity (cutting pollution) and European firms were anyway given overly generous carbon quotas under the cap-and-trade scheme. So carbon prices have collapsed, falling from $20 a tonne in August 2008 to below $5 now (see chart).