Do you own a nice suit? Are you willing to break the law and tell a few lies? Then with a little ingenuity, you can make a killing in the wild frontier of carbon markets.
Carbon markets are especially prone to corruption and fraud when they are contaminated with carbon offsets. (Carbon offsets allow U.S. polluters to avoid reducing their own emissions by sending money overseas in exchange for promised—and often pretend—pollution reductions elsewhere.) Because the value of each carbon offset is based on a story ( a lie, fabrication, fairy tale) about how an emissions reduction would not have taken place if the offset hadn't been purchased, offsets markets are inherently rife with opportunities to stretch the truth—or outright lie. The American Power Act, recently proposed by Sens. Kerry and Lieberman, would create carbon market gaming opportunities because the carbon trading mechanism featured in the bill is contaminated with offsets.
Warning- Though done by Friends of the Earth, who generally support this nonsense, the report is nonetheless valuable because it points out how this cap and trade/carbon market is ripe for rip-off. As was intended.
They even point out that 9 of the 10 scams have already been carried out in the EU carbon market-
Nine of the ten methods addressed in the guide have already been carried out. Some tricks are variations of classic scams such as Ponzi schemes, phishing and tax fraud. But other cons are more particular to carbon trading.
Scam 1: Boost the baselines
How to do it
If you are an industry facing carbon limits, inflate your projected emissions levels in order to claim a greater governmental allocation of carbon permits -- preferably for free. If you are a carbon offset developer, inflate the projected emissions scenario that would occur without your project; then, collect more credits than you really deserve.
Scam 2: Ponzi carbon
How to do it
Like any classic Ponzi scheme, the trick is to use the buzz of a little-
understood market to attract investors, who you pay off by recruiting new ones. If investors are skeptical of your “all upside, no downside” proposition, you can always point to the true fact that Congress has created a steadily escalating price floor on
Scam 3: Sell fake carbon offset credits
How to do it
Wear a nice suit, prepare a nifty powerpoint presentation, and convince a buyer to purchase carbon credits, preferably generated by a project in a faraway place they will likely not visit. If they do decide to visit, take them to a “Potemkin village” – one carbon offset project that can be shown off repeatedly to visiting investors. After they are duly impressed, take their money and run.
There is much more to read, including how and where 9 of the scams have already been pulled off. The money to be made by the Wall Street scum banksters and the so called brokerage firms that will be selling these carbon credits/offsets is incredible.
I guess it was worth it to Al Gore to start his Generation Investment LLP
Of course not Al Gore alone, he had previous employees of Goldman Sachs , to help him.