By Andrew Bolt ~
The Australian Labor Party will open us up to being rorted blind by carbon credit shysters trading in hot air.
Labor’s Climate Change Action Plan will … create new opportunities for Australian firms to trade and engage with other ETS [emissions trading scheme] jurisdictions – already 40 per cent of the world’s economy.
Labor’s plan [is] for an Emissions Trading Scheme with access to international carbon offsets…
Here is New Zealand’s latest experience with such schemes which allow business to buy a certificate from people overseas who claim they’ve cut their own emissions by so much that their certificate allows the buyer to emit a little more – at a modest charge:
The New Zealand government may have participated in major climate fraud through the use of dodgy “hot air” carbon credits issued by the Ukraine and Russia, according to a new report from the Morgan Foundation.
The Emissions Reduction Units from the two countries did not represent true emissions reductions, Morgan Foundation economist Geoff Simmons said.
His report, Climate Cheats, also said that proportional to national emissions, NZ had been the largest purchaser of the credits worldwide through its Emissions Trading Scheme to the tune of $200 million…
However, he said, the nation’s actual emissions are continuing to grow in excess of national targets.
“We have been party to a fraud that has potential to damage our international reputation as a clean, green and corruption-free country.”…
Professor Euan Mason from the University of Canterbury School of Forestry said the Morgan Foundation’s findings were “unsurprising”.
“For several years those of us who have studied the ETS have been saying that policy settings made it morally bankrupt and ineffective,” Professor Mason said.
“Hot air credits from the Eastern block countries, mainly from the Ukraine, were selling for as little as 17 cents per tonne while New Zealand Units, our domestic carbon currency, were selling for around $3. This led to all sorts of morally dubious, but entirely legal, behaviours among traders and emitters in New Zealand.”
True, the Morgan Foundation is a green front. But from its report:
The potential for [emissions reduction units] to become a vehicle for fraud has been clear for many years, and those in the know have long suspected most ERUs were lacking integrity. However, in
2015 the respected Stockholm Environment Institute published the first in-depth review to lay the facts on this issue bare, confirming those widely held suspicions….
The researchers conducted a detailed assessment of 60 randomly sampled projects (9.3% of the total 642 projects registered). Within this sample, they found that the additionality claims (i.e. that they represented emissions reductions beyond business-as-usual) behind 73% of the ERUs issued were ‘not plausible’, and a further 12% were ‘questionable’. The researchers also looked further into the six largest project types in terms of ERU issuance. Further to the implausible claims of additionality, they found evidence of projects being over-credited due to exaggeration of the actual emissions reductions. In sum the researchers concluded that “80% of all ERUs come from project types with questionable or low environmental integrity”. For Ukraine and Russia – which together accounted for 90% of the total ERUs issued – the percentage of dodgy credits was even higher: more than 89% and 82% respectively.
INTERPOL (the International Criminal Police Organisation) published a guide to carbon trading crime in 2013. In it, they warn that: “Carbon markets, like other financial markets, are also at risk of exploitation by criminals due to the large amount of money invested, the immaturity of the regulations and lack of oversight and transparency.”
And how can the explosion of cheap and dodgy credits make any serious difference to emissions?
This is a con. All seeming to cut emissions, and no real doing. Our money would just be trucked overseas to simply seem green.
Andrew Bolt writes for the Herald Sun, Daily Telegraph, and The Advertiser and runs Australia’s most-read political blog. On week nights he hosts The Bolt Report on Sky News at 7pm and his Macquarie Radio show at 8pm with Steve Price.