Carbon credits used for “printing money”

I first realised that the “carbon credit” schemes were essentially money-making scams sheltering under the “environmental” umbrellas of the UN and the EU in the mid 1990s. The misguided and meaningless Kyoto protocol was established in 1992 and fuelled a whole raft of “environmental entrepreneurs” who soon became expert at milking the funds available. I was visiting some of the former Soviet countries to discuss their power generation needs (with a view to selling power plant equipment) and soon realised that all the discussions had nothing whatever to do with meeting energy needs, but were for bureaucrats and politicians to find ways to tap into the carbon credits available via UN and EU schemes for – ostensibly – reducing carbon emissions that didn’t exist. Sometimes the discussions were quite openly about how to show that carbon emissions were much higher than they actually were and then claiming credits for running quite normally. As an example, a district heating scheme actually using Russian gas had combustion equipment capable of burning heavy fuel oil or even coal. “Normal” emissions were then “certified” by the Ministry of Energy as being from the use of the worst possible fuel, and then carbon credits were claimed for “emissions reductions” by “switching” to gas.

The “cost of carbon” as reflected in carbon taxes and carbon credits have nothing really to do with reduction of emissions and even less to do with climate. They have all been schemes for milking very many taxpayers for the benefit of a few “environmental entrepreneurs”. Carbon credits have achieved little beyond promoting fraud.

Now, finally, 20 years after the event, the truth about carbon credits is beginning to surface:

BBC:Carbon Credits like “printing money”

The vast majority of carbon credits generated by Russia and Ukraine did not represent cuts in emissions, according to a new study. The authors say that offsets created under a UN scheme “significantly undermined” efforts to tackle climate change.

The credits may have increased emissions by 600 million tonnes. In some projects, chemicals known to warm the climate were created and then destroyed to claim cash.

As a result of political horse trading at UN negotiations on climate change, countries like Russia and the Ukraine were allowed to create carbon credits from activities like curbing coal waste fires, or restricting gas emissions from petroleum production.

Under the UN scheme, called Joint Implementation, they then were able to sell those credits to the European Union’s carbon market. Companies bought the offsets rather than making their own more expensive, emissions cuts.

But this study, from the Stockholm Environment Institute, says the vast majority of Russian and Ukrainian credits were in fact, “hot air” – no actual emissions were reduced.

They looked at a random sample of 60 projects and found that 73% of the offsets generated didn’t meet the key criteria of “additionality”. This means that these projects would have happened anyway without any carbon credit finance.

It is not just Russia and Ukraine of course.

And the fraud continues. No carbon tax or carbon credit scheme has ever been monitored for effect. No scheme has ever had any impact on climate. Every carbon credit or carbon tax scheme has only put general taxpayers’ money into the pockets of a few “environmental entrepreneurs”. And that applies to virtually every country in Europe and every former Soviet Republic.

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One Response to “Carbon credits used for “printing money””

  1. Crediti di Carbonio utilizzati per "stampare moneta" : Attività Solare ( Solar Activity ) Says:

    […] 26 Agosto 2015 – K2P Blog (Svezia): https://ktwop.com/2015/08/25/carbon-credits-used-for-printing-money/ […]

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