If Carbon dioxide is the real issue, how is it possible to trade carbon in a profit making manner?
If the idea is REALLY to reduce carbon dioxide, then one would think carbon trading would have, should have, extremely limited trading potential?
World Bank: Climate Profiteer
The World Bank is perhaps the best example of how one institution can use carbon trading for profit, while continuing to finance projects that make the climate grow more unstable. The Bank’s growing number of carbon funds were the subject of a recent report by Janet Redman, a researcher with the Sustainable Energy and Economy Network, a project of the Washington, D.C.-based Institute for Policy Studies. That report, “World Bank: Climate Profiteer,” found that the World Bank was charging a 13 percent commission on its more than $2 billion in carbon trades, while continuing to support fossil fuels. The report found that these World Bank carbon trade projects show little evidence of actual emissions reductions: Of the 83 active World Bank projects found in the Bank’s online project database, only nine have delivered Certified Emissions Reductions (CERs). The vast majority of these CERs came from a single industrial chemical project in China. That chemical project — the destruction of hydrochlorofluorocarbons, or HCFCs — is highly controversial as it potentially pits the Montreal Protocol to Control Substances that Deplete the Ozone Layer against the UN Framework Convention on Climate Change, by making it hugely profitable to destroy HCFCs, thereby potentially creating perverse incentives to continue to produce them.
Other key findings of the report include:
- To date, less than 10 percent of all the funds flowing through the World Bank’s carbon trust funds are going to support clean, renewable energy, defined as wind, geothermal solar and hydro-electricity power plants with a generating capacity of 10 megawatts or less.
- The bulk of the World Bank’s carbon finance portfolio (75 percent to 85 percent) has been directed to carbon trades involving the coal, chemical, iron and steel industries.
- The World Bank Group is experimenting in the carbon market, without taking significant risks, knowing that projects with little added value can be readily dumped — for a profit — into the voluntary carbon market, a market that is entirely self-regulated.