Posts Tagged ‘carbon credits’

Carbon credits used for “printing money”

August 25, 2015

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.

Thank goodness for the Russians

June 12, 2013

It isn’t often that the Russian position is to be admired and even in this case they are doing – in my opinion – the right thing but for the wrong reasons. Anything which blocks the ridiculous UN Panel on Climate Change and its pointless and wasteful exercise in Bonn is welcome. Of course the Russians are only really concerned about the value of the Carbon credits they have stock-piled. Credits they received  for shutting down inefficient industries as being environmental “good guys” but where these were going to be shut down anyway.

This from AFP:

A key panel at UN climate talks in Bonn went into deep freeze on Tuesday as Russia ignored pleas to end a procedural protest, according to a webcast of the meeting and sources there. Supported by Belarus and Ukraine, Russia refused to let work start in the Subsidiary Body for Implementation (SBI), an important technical committee in the climate talks, more than a week after the 12-day negotiations began.

Observers said if the three countries did not back down, the future of the entire UN process to fight greenhouse-gas emissions would be at risk. “It’s a most unfortunate situation,” said Christiana Figueres, head of the UN Framework Convention on Climate Change (UNFCCC), as delegates admitted the panel will most likely have achieved nothing by Friday’s close.

The Russians are incensed by what happened at the UNFCCC’s last big annual meeting, held in Doha, Qatar, last December. They complain they were ignored by the conference’s Qatari chairman, who gavelled through a deal that extended the Kyoto Protocol.

The decision at Doha hamstrung Moscow’s planned sale of 5.8 billion tonnes of carbon credits that Russia had amassed under the first round of the Kyoto Protocol.

It had gained these credits not through emissions reductions efforts, but after market pressure forced the closure of CO2-spewing factories following the fall of the Soviet Union.


“If these three countries maintain their positions until 2015, they could wreck the entire process,” one observer warned AFP.

In Europe, coal now offers both lower prices for electricity consumers and higher profits for utilities

September 22, 2012


The costs of coal fired power generation in Europe have been artificially inflated for some time now by the imposition of various forms of carbon taxes. These taxes and penalties – which are quite arbitrary – serve political and electoral goals and generally pander to the alarmist view of climate change. The electricity consumer has taken the hit.

Bloomberg reports:

Coal Era Beckons for Europe as Carbon Giveaway Finishes

European utilities are poised to add more coal-fired power capacity than natural gas in the next four years, boosting emissions just as the era of free carbon permits ends.

Power producers from EON AG to RWE AG (RWE) will open six times more coal-burning plants than gas-fed units by 2015, UBS AG said in a Sept. 5 research note. Profits at coal-fired power stations may more than double by then, according to a Goldman Sachs Group Inc. report published on Sept. 13.


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