On 5/19/2013 7:47 AM, Gar Lipow wrote:
> ...
> There are other problems with carbon trading. These are not even 
> neccesarily th e most important ones, just ones that can be expressed 
> fairly succinctly. If Patrick Bond and Larry Lohmann choose they can 
> probably point you towards some of the ones the require longer discussion.

Do these make sense? The eight I usually dwell on are:

· the idea of inventing a property right to pollute is effectively the 
‘privatisation of the air’, a moral problem given the vast and growing 
differentials in wealth inequalities;

· greenhouse gases are complex and their rising production creates a 
non-linear impact that cannot be reduced to a commodity exchange 
relationship (a tonne of CO2 produced in one place accommodated by 
reducing a tonne in another, as is the premise of the emissions trade);

· the corporations most guilty of pollution and the World Bank – which 
is most responsible for fossil fuel financing – are the driving forces 
behind the market, and can be expected to engage in systemic corruption 
to attract money into the market even if this prevents genuine emissions 
reductions;

· many of the offsetting projects – such as monocultural timber 
plantations, forest ‘protection’ and landfill methane-electricity 
projects – have devastating impacts on local communities and ecologies, 
and have been hotly contested in part because the carbon sequestered is 
far more temporary (since trees die) than the carbon emitted;

· the price of carbon determined in these markets is haywire, having 
crashed by half in a short period in April 2006 and by two-thirds in 
2008, thus making a mockery of the idea that there will be an effective 
market mechanism to make renewable energy a cost-effective investment;

· there is a serious potential for carbon markets to become an 
out-of-control, multi-trillion dollar speculative bubble, similar to 
exotic financial instruments associated with Enron’s 2002 collapse 
(indeed, many Enron employees populate the carbon markets);

· as a ‘false solution’ to climate change, carbon trading encourages 
merely small, incremental shifts, and thus distracts us from a wide 
range of radical changes we need to make in materials extraction, 
production, distribution, consumption and disposal; and

· the idea of market solutions to market failure (‘externalities’) is an 
ideology that rarely makes sense, and especially not following the 
world’s worst-ever financial market failure, and especially not when the 
very idea of derivatives – a financial asset whose underlying value is 
several degrees removed and also subject to extreme variability – was 
thrown into question.


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