|Carbon Market Power-dives in Europe|
Friday, November 25, 2011
Carbon is now a dirty word!
Reuters has the story of the Carbon Market and Investor's Association changing it's name to Climate Markets and Investors Association which probably has a lot to do with the carbon market in free-fall in Europe and elsewhere and repeated stories of massive fraud are probably not helping. Sceptics can only hope that the carbon credits are starting to be seen for what they are - worthless pieces of paper . European price is now 7.8euros compared to the $23.00 price set for Aussies to pay by our government of dimwits!
The VCS Association, which manages a voluntary carbon offset standard, stopped spelling out the word "carbon" in its name last year.
"We never really thought twice about moving away from the word 'carbon'," said VCS Chief Executive David Antonioli.
"Carbon trading in particular does not have the best reputation so if you want to stay in this space but draw less ire from some quarters it would make sense to use climate instead of carbon."
Tough economic times and soured efforts to set up a U.S. national emissions trading scheme have hurt the sector.
So have scandals in the EU emissions trading scheme, including carbon permit theft, tax fraud, re-use of U.N. carbon credits and internet scams.
Just a few years ago, many investors were betting on a $2 trillion global carbon market by 2020.
Instead, carbon prices in both the EU ETS and a U.N.-backed carbon offset scheme have tumbled, hit by slowed economic growth and over-supply.
That has forced many firms to pull out of emissions trading altogether or scale back investment.
It has also prompted many organizations to reconsider how they communicate on issues related to climate policy.
"(The shift) is mainly related to the negative image that was created around carbon markets in the U.S.," said Russel Mills, global director of energy and climate change policy at Dow Chemical.
"Energy security, clean energy and jobs from shale gas or efficiency are the only topics one can safely touch in Washington for the time being," he said.
U.S. public concern about climate change has been steadily falling since 2007, a Nielsen opinion poll showed in August, as people focus on more immediate economic concerns and question the science behind climate change.
The United States, the world's second largest emitter, is the only industrialized nation not signed up to the U.N.'s Kyoto Protocol for curbing emissions.