Carbon Trading market collapses - Kyoto down the pan

EC pollution policy in disarray as carbon permit prices crash
By Edmund Conway, Economics Editor Daily Torygraph 29/4/06

"Louis Redshaw, head of environmental markets at Barclays Capital, said this suggested the carbon allowances handed out by the European Commission at the start of the scheme last year had been too generous.

"In that situation the allowances are potentially worth nothing," he said. "It's not good that we should have such volatility in the market. But the silver lining is that the EC will be much stricter about its assessment of national allocation plans in the future." Ho. Ho !

It is almost impossible to believe how dumb the people are who say such things. This whole thing is a casino contrived to make money for the shysters and money jugglers of the Square Mile ... who have their second Jamboree in Cologne next week.

But perhaps not so dumb and naive as this Tree Hugger the Torygraph quote .."Martin William of Friends of the Earth said:

"If you don't set the cap at a tough enough level then the whole market system falls apart. You are allowing people to have permits to sell for effectively doing nothing. That said, the fall could also be related to higher oil prices."

Martin, no doubt a sincere gent but a trifle unworldly, evidently labours under the belief that the snake oil salesmen of Leadenhall Street are as concerned about the environment as he is. The terrible truth, that has now slowly dawned on him and his gang, is that these financial wizards don't give a flying fuck about carbon dioxide, and global warming. That they don't actually do anything but shift around worthless bits of papers in what is after all a sophisticated shell game, authorised and authenticated by the stupid Governments who signed up for Kyoto. he now realises that these City are more concerned with Porsches, holidays in the sun and prefer the air controlled ambience of the Spearmint Rhino to melting polar ice caps.... but such is his faith he thinks well...maybe it is the oil price... I hope (but it is unlikely) he has a sound Financial Advisor.

Curiously Margaret Beckett the Minister responsible cannot be found anywhere, no doubt cooking a hearty breakfast in some French layby in her lightweight Grand Touring shed on wheels using a gas cylinder that has doubled in price since last year.

A DEFRA news release from 2002 is revealing about how preternaturally stupid she is..

Margaret Beckett saw how trading takes place and said today:

"This is the first time that I have been able to see for myself how the trading of allowances under the UK Emissions Trading Scheme actually works in practice and meet some of the people who are involved in it every day. Since this innovative Scheme started at the beginning of the month, I have been encouraged by the amount of interest it has generated both at home and internationally.

"The Government is demonstrating to the world how cutting greenhouse gas emissions reductions can be achieved at minimum cost. We are working with the grain of the market, by careful design of economic instruments that show business how there can be real commercial benefit in making savings.

" The UK's Scheme is giving both the Government and its participants early experience of emissions trading, as well as creating an opportunity for the City of London to become a global hub for greenhouse gas emissions trading.

"The business community was at the forefront of the development of this Scheme and recognises that this is an significant opportunity to gain early experience of this important new market. I shall follow the development of this initiative with considerable interest."

Meanwhile Forbes reports that the UK government has quietly withdrawn from further court action against the European Commission to increase the number of carbon dioxide allowances available to UK firms under the EU Emissions Trading Scheme (ETS).

This was an action which the Government undertook under pressure from large energy users to increase the size of the UK cap - this is effectivly a last ditch attempt to salvage the market for the money jugglers at the expense of manufacturing industry as they wait the publication over the next two weeks of the performance of other EU countries, UK included.

Pic of the environmentally aware Beckett planting an Oak Tree in the rain - evidently well dressed for the event.