Once upon a time, carbon trading was supposed to be the salvation for Earth’s climate problems. But as time went on, people started realizing that something was wrong. As usual, financial markets anticipated the move. Late last year, US carbon trading crashed. Two weeks later, it closed.
In Europe, the price of CO2 emissions even flourished earlier this year. The European Union pushed for stronger policies towards renewables. And Fukushima pressed German’s chancellor Angela Merkel to abandon nuclear, with some imagining that renewables would fill in the gap.
Last week, Greece started auctioning their EUAs (European Union Allowances). They need the money, and probably other countries will follow, including Portugal. But they were not that lucky! Of the 1 million permits, only 6000 EUA were sold. The reason: nobody is buying…
In the meantime, Poland has blocked an EU deal on CO2 emissions. They are the largest producer of hard coal in the EU, and the share of coal in electricity generation (92% in 2004) is the highest among the EU Member States. They are also pushing for shale gas. The result for them: the biggest GDP growth in 2009 and the third in 2010, amongst the 27 European member states.
Finally, Yvo de Boer has confirmed what everyone knows: the Kyoto Protocol is dead!
The result: This week, Bluenext‘s EUA phase 2 2008-2012, went tumbling down. It closed at 12.21 €, down from 15.41 € a week before, a 20% drop in a week! And after all, carbon markets are not actually helping to combat global warming and climate change, and are open to the kind of speculation and fraud that led to the global financial crisis of 2008…
fantastic news
“Cap and Trade” is failing because it is based on fantasy economics derived from the Marxist philosophy of “perception is reality”.
Just as all Marxist fantasy economics fail because, as investors are stating to realise with “Cap and Trade”, it has been designed and implemented by deviants and perverts and instead of being grounded in sound economics, it is based upon the fantasies of the criminally insane.
Investors have finally realised that if “Cap and Trade” is a genuine attempt to move towards alternative carbon free energy, then as that process takes effect their investments in carbon offsets can only ever go down in value.
Carbon offsets can only maintain or increase in value if our economies remain carbon based and therefore carbon offsets/credits remain in high demand. If we transition to low carbon or carbon free energy production, which is the stated goal of this whole carbon offsetting scam, then demand for carbon offsets or carbon credits will naturally diminish.
The only way that Cap and Trade can produce true longterm wealth is if the transition away from carbon based fuels never happens.
“Cap and Trade” is therefore a self defeating self consuming economic paradox which can never produce any true wealth. It is a scam from the outset which has been devised by the criminally insane. The stated goal of this ridiculous scam is a transition away from carbon based energy production. If that were at all possible, perhaps if we all move over to nuclear power like France, then the value of a ton of CO2 would plummet.
Evidence that this is exactly what will occur has come in the form of economic projections of the effect of the current global economic slow/melt-down. As the global economy slows, demand for carbon based energy falls and with it, the imaginary value of a ton of carbon.
This is the cause of the current correction in the EU carbon markets.
It is proof that “Cap and Trade” is not just a self defeating paradox, it is an outright scam.
Why should carbon rights be worth anything in Athens when they are worth “0” in Chicago? Because Greeks (and the rest of the Europeans) have the threat of a (German) carbon tax in 2013.
How likely is it for the Germans to imposer a pan-European carbon tax if they shut down their nukes? Ι am anxiously waiting on that one…
A scam made in Germany, and the Germans are caught in the Green Eco Trap they set up for the rest of the World.
Rest assured that the real criminals in the Green Bubble have already escaped with the loot, strewing roofing nails in their tracks. It’s the little people, and the useful idiots who will take it in the shorts. Or, rather, be depanted by the shorts.
================
Good observation and point(s), but not improved by chewing it over and spitting out 3 or 4 times in slightly different words. Makes you sound like you’re babbling, even though you’re really not.
Good editing is mostly getting rid of unnecessary over-statement and wandering wordiness.