Emissions Trading – a triumph of hope over reality

The European Union’s Emissions Trading Scheme was doomed from the start. I have always held that you cannot use the devices of the casino to reduce emissions. You can tax emissions, making them more costly to produce and creating an incentive to encourage ways of using clean renewable emissions, but to set up a system where emission producers can speculate on the price of carbon dioxide, which is a commodity that no one wants and no one can use, as a way of reducing carbon dioxide emissions, will make no difference to the amount of greenhouse gas emissions that are produced. Continue reading

The Aviation Stand-off

China has announced that its airlines will not be allowed to pay the EU tax on airline carbon emissions that applies to aircraft flying to or from the European Union without the specific approval of relevant government departments. The airlines of China will not be allowed to participate in the Emissions Savings Scheme without similar clearance. Continue reading

Emissions Trading – good for business but bad for the environment

Europe’s Emissions Trading System has been around a few years. It has had many teething problems, including some shocking cases of fraud and governmental incompetence, and I have always argued against the ETS as being fundamentally flawed. Trying to us the same kind of devices to reduce emissions that brought banks and economies to their knees is simply foolish. Continue reading

Emission Trading – Structurally Defficient

Virtually everything can be exploited or misused. The internet is a powerful force for good and evil. Armed forces can be saviours or destroyers of life. Religion can be misrepresented or communicated perfectly. Humans are the element that can turn a device from one than helps into one that hinders and obstructs. Continue reading

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. Continue reading

Closing down the carbon exchange

When I first learned about the proposal to use a system of carbon credits and carbon trading as the main means of defeating climate change I was sceptical. This concept, pushed by the United Kingdom, seemed to me, to use the very devices that brought banking and the economies of many nations to their knees. I wrote then that the system was bound to fail in its objectives to reduce emissions and argued that what we needed was more measures, as opposed to measures to encourage measures. I also expressed concerns that the system would be rife with fraud. Continue reading

Emissions Trading is not working

If there was ever any real indication of the failure of the use of market mechanism in an attempt to reduce carbon dioxide emissions it is the news that carbon emission brokers have been laid off in large numbers by their broking firms. The recession has cut the amount of emissions being created, rather than measures, and the artificiality of carbon markets has left, in these circumstances a surfeit of carbon saving instruments on the market with very few buyers. Continue reading