Controlling climate change by opening a betting shop

The European Union’s Emissions Trading Scheme remains suspended following revelations that Euros 30 million worth of certificates have been stolen and sold. There is no certain date when spot trading will begin again, so if you have emissions certificates that you wish to sell or certificates that you wish to buy, you cannot do so right now.

The Emissions Trading Scheme applies to all 27 EU states plus Norway Iceland and Liechtenstein. It was conceived as a way of using market forces to control emissions by putting a cost on emissions from major pollution industries. Each participating state maintains its own exchange and is responsible for policing it, and transactions across exchanges are common.

I criticised its concept at the time it was formed because I felt, and I think it is now shown, that to reduce prevention of rapid climate change by a casino type operation is futile. It simply opens another betting shop at which you can bet on esoteric events, entirely beyond your control and very hard to predict.

According to yesterday’s Financial Times the ETS market comprises 10% spot transactions where people want to buy or sell certificates and 90% future and option transaction which are in the main speculations. Turnover in the market was Euros 90 billion, in 2010, so it is arguable that only Euros 9 billion involved a real demand, as opposed to a speculation. I am having great difficulty in understanding how speculating on the future price of the cost of pollution by greenhouse gases helps the environment. Perhaps someone could explain it to me.

 

One Response

  1. Just like the duty on fuel and the corporate taxes we pay over the counter we are all going to pay very dearly for the pollution made in our name far away, while their vested interests in the non compliant and non carbon creditors country who also back the same factories get away scott free yet again.

    If we simply turn our backs on the situation and fund their coffers with more funny credits we deserve eberythong we are going to get, Dick Turpin would is turning in his grave right now, but his old saying still stands proud, you spend and we will deliver your bills for nothing and give them their carbon credits for free, which they will use against you time and again, its is absolutely ridiculous.

    Remember these corporates never ever pay tax, you do.

    These people were not happy to agenda 21 your jobs away but they are going to make you pay twice and thrice for what you buy, while your wallet crashes and burns another day, don’t buy into your own demise money wise, grow a backbone and boycott the brands or you will be branded allright.

    Why on earth can’t people see what is happening in their name, its down to all gasses and all pollution not just the safest to man directly that is being singled out, Co2 is miniscule in comparison to the greatest in the guise of constant rotting vedgetation or methane and volcanos, not just the ones you can see but the thousands on the ocean floors errupting gasses as they go.

    Time to wake up and run the money lenders and shakers out of tow, carboniferous indeed.

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