Inside the box: buy that crap!

Ok folks, the price for carbon is DOWN. I mean, it has slumped the same way it did last year. While it a ton of CO2 was at €20 in summer’08, it’s now around €10. (let’s see if it hits the €1 again!)

The value of the market has dropped from €92bn last year to €63bn this one. Mainly due to the recession, industries emit less crap and need less certificates. While this sounds good at first view, the problems come through the markt-mechanism. Here we have a system (more or less) of demand and supply. Demand down. Supply stable. Result = prices drop big time.

Because it becomes cheaper for companies to buy crapy permits under the EU-ETS, it is less likely that they invest abroad in CDM-projects. Now while some farmers may cheer that their land is not being privatized or elsewhere a forest is safed… generally there are a lot of people upset about lesser investments form the Global North in the Global South.

I personally had the idea – even though it is not „outside the box“ – to just buy a lot of Carbon Credits as a bunch of individuals to drive the price up. The higher the price, the more those industries have to pay. Since they already have given the costs for permits (for 100% of needed permits, even though they get a huge amount for free!) further down the line to the consumers (=windfall-profits), it is really just a matter of where we want to see the money: in the companies pockets or with the one who sells certificates in an auction. The latter would be the State – provider of health care, kindergardens and education facilities that are (theoretically) open to all kind of people, no matter their heritage.

The Swedish Society for Nature Conservation (SSNC) tries to get individuals and their companies to buy emission allowances to get the prices higher. While this seems to be more of a small awareness-raising campain; it’s a start! SSNC promises not to give away the permits to offset emissions, effectively taking permits away from the market (what we Greens demand all along: less permits for dirty companies!!!). They were buying allowances in the form of options.

Despite the fact that I miss this critizism towards the whole Trading stuff, his idea, however,is getting a little too big for ordinary people, as the volume of Carbon Trading worldwide is – despite the crisis going on – expected to increase from 1million tonnes last year to 339m tonnes this one. This includes (6%) the RGGI (Regional Greenhouse Gas Initiative, a banf of 10 liberal states in the north-east US that are having their own ETS-system). And once Barack is making true and a US-wide ETS comes (and later an OECD-wide) – this idea is maybe a little too idealistic. Maybe.

Sources: SSNC, Harvey

Über GYGeorg

Global. Young. Green. Drei Eigenschaften von Georg, der lange u.a. bei den Global Young Greens (GYG) aktiv war und mittlerweile für den Kohleausstieg in Deutschland kämpft.

Veröffentlicht am März 6, 2009 in Carbon Trading und mit , , , , , , , , getaggt. Setze ein Lesezeichen auf den Permalink. Ein Kommentar.

  1. A big thing is what we do with the money we get from the permits. My Governor is using this money poorly..

    http://madrad2002.wordpress.com/2009/03/15/omalley-raiding-70-million-from-efficiency-fund/

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