Wikileaks cable reveals the fraud that is the Kyoto protocol

Prof. Dr. Ottmar Edenhofer is the Co-Chair of Working Group III of the IPCC – deputy director and chief economist of the Potsdam Institute for Climate Impact Researck (PIK). PIK is somewhat notorious for being a scientific institution where all their results are governed and constrained by political correctness. Only results which support global warming dogma are ever published by PIK. It is also the institution which is home for the sea level alarmist Stefan Rahmstorf.

But last year even a high priest such as Ottmar Edenhoffer was forced to admit:

“But one must say clearly that we redistribute de facto the world’s wealth by climate policy.  Obviously, the owners of coal and oil will not be enthusiastic about this.  One has to free oneself from the illusion that international climate policy is environmental policy.  This has almost nothing to do with environmental policy anymore.”

It becomes increasingly apparent that climate policy has very little to do with science and everything to do with creating and tapping into vast flows of money. And now courtesy of the Wikileaks cable releases we learn:

UNCLAS SECTION 01 OF 06 MUMBAI 000340 

SENSITIVE
SIPDIS 

STATE FOR G, OES/FO, OES/PCI, OES/EGC, AND SCA/INS
DEPT OF ENERGY FOR TCUTLER, CGILLESPIE, MGINZBERG
USDOC FOR A/S BOHIGIAN
NSC FOR DAN PRICE AND ROBERT DIXON
CEQ FOR JAMES CONNAUGHTON 

E.O. 12958: N/A
TAGS: SENV ENRG ECON TSPL TRGY KSCA IN
SUBJECT: CARBON CREDITS SUFFICIENT BUT NOT NECESSARY FOR SUSTAINING
CLEAN ENERGY PROJECTS OF MAJOR INDIAN BUSINESS GROUPS 

REF: A. A) Mumbai 302
     ¶B. B) New Delhi 1935
     ¶C. C) Kolkata 194 

MUMBAI 00000340  001.2 OF 006
¶1.  Summary.  (SBU) Despite the risk and uncertainty of
qualifying for carbon credits (see ref A), Indian businesses
have pumped USD 25 billion into unilaterally developing Clean
Development Mechanism (CDM) projects to generate carbon credits.
 In discussions with ConGenoff and visiting analysts from the
Government Accountability Office (GAO), executives of major
Indian companies outlined their plans to earn carbon credits....
Nature reports on the cables that the Clean Development Mechanism (CDM), which was established under the Kyoto Protocol is a farce. It is yet one more example of the billions stolen through carbon trading frauds.

Quirin Schiermeier writes: As the world gears up for the next round of United Nations climate-change negotiations in Durban, South Africa, in November, evidence has emerged that a cornerstone of the existing global climate agreement, the international greenhouse-gas emissions-trading system, is seriously flawed.

Critics have long questioned the usefulness of the Clean Development Mechanism (CDM), which was established under the Kyoto Protocol. It allows rich countries to offset some of their carbon emissions by investing in climate-friendly projects, such as hydroelectric power and wind farms, in developing countries. Verified projects earn certified emission reductions (CERs) — carbon credits that can be bought and sold, and count towards meeting rich nations’ carbon-reduction targets. 

But a diplomatic cable published last month by the WikiLeaks website reveals that most of the CDM projects in India should not have been certified because they did not reduce emissions beyond those that would have been achieved without foreign investment. Indian officials have apparently known about the problem for at least two years.

“What has leaked just confirms our view that in its present form the CDM is basically a farce,” says Eva Filzmoser, programme director of CDM Watch, a Brussels-based watchdog organization. The revelations imply that millions of tonnes of claimed reductions in greenhouse-gas emissions are mere phantoms, she says, and potentially cast doubt over the principle of carbon trading. “In the face of these comments it is no wonder that the United States has backed away from emission trading,” Filzmoser says. The cable, written on 16 July 2008, was sent by the US consulate in Mumbai, India, to the US secretary of state, and summarizes a discussion of the CDM involving representatives of the consulate and the US Government Accountability Office, along with Indian officials and executives of large Indian companies. At the time, 346 Indian projects had been registered with the CDM’s executive board. Today, more than 720 Indian projects have been approved and have gained some 120 million tonnes’ worth of carbon credits, a large fraction of the 750 million tonnes issued since 2005 .

Yet on the evidence of discussions at the meeting, most of the carbon-offset projects in India fail to meet the CDM requirements set by the UN Framework Convention on Climate Change. The cable also describes the UN’s validation and registration process as “arbitrary”.

Indian authorities were also criticized in the cable. All CDM projects must be validated nationally, then verified independently by an accredited firm. But the cable quotes R. K. Sethi, then chairman of the CDM’s executive board and member-secretary of the Indian CDM authority in New Delhi, as admitting that the authority simply “takes the project developer at his word for clearing the additionality barrier”.

Project developers are the main beneficiaries of carbon trading schemes and of most of the subsidy schemes created for the promotion of uneconomic and unsound renewable energy projects. But the CDM scam has provided an additional bonus in revenues for developers for projects which were to be implemented anyway as the cables reveal.

[Somak Ghosh, President of Corporate Finance & Development Banking at Yes Bank], pointed out that no bank would finance a project which is viable only with carbon revenues because of the uncertainty of the registration process, unclear guidelines on qualifying CDM projects and because carbon revenue is only a by-product revenue stream of the main operations of the company. .. He [Ghosh] admitted that project developers prepare two balance sheets to secure funding: one showing the viability of the project without the CDM benefit (which is what the bank looks at) and another demonstrating the non-viability of the project without the CDM benefit. ….[Ram] Babu, [the Managing Director of CantorCO2e's operations in India (a global project and emission trading consultant)] said that CDM benefit is a bonus and noted that most of the projects are implemented even before being registered to earn carbon credits.  Excluding “business as usual” projects from qualifying is “killing” Indian projects, he added. 

And the scams have diverted billions of tax money into the pockets of opportunistic developers and – without doubt from my own personal experience  - their favourite politicians and bureaucrats. And such scams will not end any time soon as the Nature article  concludes:

Despite the controversy, the European Union seems determined to continue its mandatory emissions-trading system, which it sees as crucial in tackling climate change. There’s little doubt about the urgency of that goal: global carbon dioxide emissions have increased by 45% since 1990, reaching an all-time high of 33 billion tonnes in 2010, according to a report released last week by the European Commission.

The irrelevance of man-made carbon dioxide to climate has only been made more apparent as global temperatures have decreased over the last decade. But the scams have a momentum of their own and are much too lucrative for the main supporters of these schemes to be disturbed.

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One Response to “Wikileaks cable reveals the fraud that is the Kyoto protocol”

  1. Greed for EU carbon trading credits leads to the murder of 23 Honduran farmers « The k2p blog Says:

    [...] EU carbon trading fiasco continues and is characterised by greed and fraud. But it has now expanded to embrace the murder of [...]

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