Govt moves against dodgy carbon credits

Climate Change Minister Tim Groser

International carbon credits based on large-scale hydro-electricity projects and hydro-fluorocarbon destruction schemes in developing countries will no longer be accepted in the New Zealand emissions trading scheme if government recommendations are implemented.

Climate Change Minister Tim Groser announced a two-week consultation from November 19 on whether to ban Emission Reduction Units from HFC-23 and N20 destruction projects and Certified Emission Reduction units and ERUs associated with hydro projects.

The move is a sop to opponents of the government's amendments to the ETS, passed into law last week, which entrench transitional and concessionary arrangements for major emitters and the agricultural sector for as long as there remains no significant global agreement on climate change action.

Unlike other countries with ETS-style arrangements, New Zealand imposes no restriction on the number of carbon credits that can be sourced offshore to offset local carbon emission obligations.

That has given New Zealand emitters access to carbon credits at less than $2 a tonne in recent weeks.

The ETS was implemented with a $25 a tonne cap to protect emitters if carbon prices went higher than that, but such low prices were not contemplated at the time of its introduction.

Other countries implement restrictions of up to 50% on the local use of foreign-sourced credits to bolster domestic carbon prices and encourage investment in carbon-mitigating technology.

Mr Groser says the likely exclusion of the two types of credits named was intended to protect the integrity of the ETS. They could face a ban from either January or June next year.

CER units associated with hydro-fluorocarbon destruction have already been banned from the New Zealand scheme after evidence emerged of facilities being established in developing countries to create the substances, which could then be destroyed to collect subsidies.

Meanwhile, a decision to "backload" 900 million European Union Allowance credits may lead to some strengthening in global carbon prices.

The decision by administrators of the European Union ETS effectively withdraws units from trade in 2013 for reinjection into the market in 2019.

The move is intended to help deal with the glut of European carbon credits which is depressing prices worldwide.

(BusinessDesk)

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Folks
Eron of America (now defunct) thought up the carbon credits scheme
That says it all

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It didn't stop the Harvard Pension Fund taking $300-mil off us last year.....for their contribution to 'our' carbon mitigating timber growing strategy, er, such is it was.
Be pleased and proud that Harvard paid bigger bonuses/ got an even bigger fleet of Beemers/ spewed it on a bender/ built a new library.....
They did us a favour, I guess, 'cos we showed we had no better idea of what to do with that money we've added to our petrol price (costs of sales )instead of hiring........
Talking of con-jobs. Al Gourmond and the Gorons are being asked to prove that Tami-flu works......after we'd all spend $ hundreds of millions to be protected from another of his 'Inconceivable Truths'
He is the biggest charlatan in the history of mankind. Without doubt.

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Govt. regulated trading for unquantifiable emissions of an invisible trace gas ... what could possibly go wrong?

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Its another brilliant tax on the public.

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Higher price carbon credits means higher prices have to be paid by the consumer
What a rout

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Read the Fiscal warnings budget 2008/2010 over the ETS. Explains it all.

Tax grab through through hard to track or detect background taxes. No wonder economists can not track the distortion ETS creates in the economy. None of the tools available account for ETS let alone are able to monitor, cope or predict it's detrimental effect (which is the point actually).

No wonder economists don't want to talk about it...

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If CO2 emissions are a problem at all, and increasingly the scientific evidence points to that not being the case at present, then it is a global problem.
If a solution is required it must necessarily be global.
What then is wrong with a global price?

Oh, those who have been issued with credits, and have not sold, cannot get the windfall that they were expecting.

Smarter operators saw the writing on the wall and sold their allocation immediately. Thank you taxpayers!

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Some interesting comments from Australia in the link below.
"Three words that are associated; Government; Carbon;Fraud "

http://joannenova.com.au/2012/11/kyoto-australia-in-new-zealand-out/#mor...

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Dodgy Carbon Credts ?
They are all dodgy.
The entire ETScam is dodgy.
All the players are dodgy.
Very disappointed Tim Groser !

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Snake oil

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Out with the NZETS!

In with a no-exceptions all-sectors including exports Carbon and other greenhouse gases Tax!

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