"“We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” "

Chinese premier Wen Jiabao 12th March 2009

""We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system."

Timothy Geithner US Secretary of the Treasury, previously President of the Federal Reserve Bank of New York.1/3/2009

Tuesday, January 09, 2007

Carbon Black hole - ETS price drops 23% in one day.

The price of carbon on the European Trading System dropped yesterday (Monday 6th January 2007 ) to €3.88 .... 0.87 cents down - a drop of 23%, yet again the lowest ever - remember it was over €30 in May.

The market closed down a further 10% (38 cents) today Tuesday 9 January 2007 @ €3.50.

How long is it going to be before the market collapse and the fraudulent trading in this smoke and mirrors show can be kept out of the MSM ?


On BBC2 Newsnight Sir Nicholas Stern the mild mannered, distinguished development economist and former chief economist at the World Bank, with a reputation as a skilful and highly rated academic, a person of intellectual discipline and rigour spoke to Jeremy Paxman the house trained polecat of the Beeb.

Without a trace of a smile, nor sign of his sizeable tongue in his cheek he explained how the high price of carbon that the ETS scheme would result in, will change economic behaviour making people use less electricty, fuel etc., use more fuel efficient cars etc.,

This whilst carbon trades at it's lowest price ever, havinf lost 1/3rd of it's (very much reduced) value in the last 2 days ,which both Stern and Paxman(if they were aware - which is unlikely) failed to mention.

This impeccably qualified academic chatters on about creating a global market for carbon pricing by extending the existing European Emissions Trading Scheme ( the one that's fast disappearing down the toilet) to include countries such as the United States, India, and China. Meanhwile Mr Putin plays with his oily spigots ....

Sleepwalking to economic disaster.


If you are wondering what this means - take a concrete example of how carbon trading works.

The UK Gubment are committed to offset GHG emissions from air travel by government staff from April 2006. (The Foreign and Commonwealth Office and the Department for Culture, Media and Sport have their own emissions reduction commitments - don't ask why that's how Gubments work - it's called joined up Gubment)
The UK Gubment does this by buying credits from UK-based emissions trading fund Trading Emissions PLC (Y/E 30/6/2006 Turnover £7.21 Mn Profit £3.49 Mn)In this instance some other hooray Henries called EEA Fund Management Ltd got a share of the action as well - follow link for details)

On 28th December 2006 (last week - PAnews/20060029/32377087 and more details here) Trading Emissions sold 225,000t of certified emissions reduction (CER) credits to the UK government carbon offsetting fund at £9.76/t = Euro 7.40 (US$19/t), or 90pc of the price of 2008 EU emissions allowances(tender bid total £2.5 Mn 1/3rd of Annual T/O). The government has the option to buy a further 50,000t of CERs = £0.5Mn. (Today's price is somewhat less at £5.20 = Euro 3.55 - see graph) - smart buying eh ?

“The government is increasingly aware of the environmental impact of air travel and this is a way to mitigate unavoidable emissions,” a spokesman for the Department of Environment, Food and Rural Affairs said.

The credits will be generated from small-scale renewable energy and energy efficiency clean development mechanism projects, one of the flexible mechanisms under the Kyoto protocol such as Sri Lankan villagers using Photo voltaics to generate daytime electricity to run domestic low voltage lights in the evening , TV's etc instead of using paraffin fuelled lighting...or Brazilian farmers preventing methane escaping from pig ..er...shit.

One CER will offset the emissions from around 10,000km of air travel — nearly enough for one London-New York return trip, according to the CarbonNeutral company.

All this hasn't stopped a single kilo of jetfuel being burnt - but it gives some folks in Whitehall and Westminster with a nice warm feeling , and of course a Carbon Trader with a fancy commission and if he/she anticipated the market dropping (ie they read Lord Patel on a regular basis) they could have dealt themselves a nice fat trading profit on top - which no doubt they did.

That is what Lord Patel means when he talks about the casino that carbon trading is..a casino that is fed very often with taxpayers money.

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