The Financial Services Authority (FSA) is the regulator of the financial services industry in the UK and has issued a warning against carbon credit trading scams.
The vast sums of money expended on misguided carbon schemes based itself on the misguided attempts to reduce carbon emissions (to what end?) have of course ended up in a few pockets.
I’m tempted to just say “I told you so!!”
The Guardian – an ardent supporter of the AGW doctrine – writes:
Carbon credit trading schemes are set to take over from landbanking as a major scam hitting unwary investors. This week the Financial Services Authority issued its first consumer alert on the schemes following an unprecedented 10-fold surge in complaints and queries in July. The watchdog warns that the schemes are unregulated, so anyone can sell them, and UK authorities have no way of controlling their quality or validity.
Investors risk ending up with an overpriced credit which is virtually unsellable – just like the almost worthless agricultural acreage that landbankers push with the promise of planning permission in the near future.
At least one company that was selling land has moved its business model from persuading investors that land will soar in value to concentrating on carbon schemes.
Jonathan Phelan, head of the unauthorised business department at the FSA, says: “Since June, we’ve seen a significant rise in consumers reporting carbon credit trading schemes to the FSA. While carbon credit trading schemes don’t automatically amount to investment schemes that require FSA authorisation, we are concerned that the majority of the firms being reported to us are using high pressure sales tactics and targeting vulnerable consumers with little or no knowledge of commodities and derivatives trading.
“We suspect that many of these firms are essentially overseas boiler rooms or landbanking firms simply selling a highly dubious new investment product and jumping upon the green/eco-friendly bandwagon. We strongly recommend that consumers seek advice from an FSA-authorised independent financial adviser before getting involved in the carbon credit trading market.”
The k2p blog 