The Carbon Trading scams around the world are coming undone (though Australia in it’s wisdom and its noble efforts to single-handedly save the world has just introduced a carbon tax). The Swiss Bank, UBS has produced a report for its investors with a devastating indictment about carbon trading “waste” in Europe and its bleak future.
SWISS banking giant UBS says the European Union’s emissions trading scheme has cost the continent’s consumers $287 billion for “almost zero impact” on cutting carbon emissions, and has warned that the EU’s carbon pricing market is on the verge of a crash next year.
In a damning report to clients, UBS Investment Research said that had the €210bn the European ETS had cost consumers been used in a targeted approach to replace the EU’s dirtiest power plants, emissions could have been reduced by 43 per cent “instead of almost zero impact on the back of emissions trading”.
Describing the EU’s ETS as having “limited benefits and embarrassing consequences”, the report said there was fading political support for the scheme, the price was too low to have any significant environmental impact and it had provided windfall profits to market participants, paid for by electricity customers. ….
In the November 17 report, UBS forecast the EU carbon price would average €5 a tonne for 2012-13 with a floor of €3, attributing the slump to a large surplus of permits. “We see few buyers of the surplus until after a ‘crash’,” the report said. ….
If the forecast came to pass, the Australian fixed carbon price of $23 a tonne, to be paid by the nation’s 500 biggest polluters from July 1 next year, would be more than three times the average of the EU price for 2012-13. Both the Business Council of Australia and the Australian Industry Group have called for a lower starting price of $10 a tonne while the Australian Chamber of Commerce and Industry has opposed a carbon price in the absence of an international agreement.
(Reuters) – European Union carbon permits, which have shed more than 40 percent since June, could plunge further as the bloc struggles with a mounting debt crisis and a glut of supply in the carbon market is unlikely to disappear until 2025, analysts at investment bank UBS and Austria’s Verbund said.
Meanwhile, Deutsche Bank lowered its price forecasts for 2011 EU Allowances to 9 euros a tonne from a prior estimate of 12 euros, and permits for 2012 delivery to 12 euros at tonne from 15 euros, analysts said in a statement late on Thursday.