Gas Shock

The price of Gas is now higher then in 1981 when adjusted for inflation. Well the interesting thing is will this reduce demand, if the recent high prices do not curb demand what price will it take. $4, $5 or $10 a gallon how much will the government have to tax Gasoline to reduce demand enough that it will have an effect on CO2 emissions.

Why Carbon Offsets Maybe A Waste Of Time

The FT investigation found:

■ Widespread instances of people and organizations buying worthless credits that do not yield any reductions in carbon emissions.

■ Industrial companies profiting from doing very little – or from gaining carbon credits on the basis of efficiency gains from which they have already benefited substantially.

■ Brokers providing services of questionable or no value.

■ A shortage of verification, making it difficult for buyers to assess the true value of carbon credits.

■ Companies and individuals being charged over the odds for the private purchase of European Union carbon permits that have plummeted in value because they do not result in emissions cuts.

Carbon Neutrality Act of 2007

This is a great article about a proposed bill the “Carbon Neutrality Act of 2007”, from the National Review Online by Stephen Spruiell.

"Vermont’s newly elected representative, has proposed a bill called the Carbon Neutrality Act of 2007. Should it become law, Congress could order government agencies like the State Department and the Pentagon “to use portions of their budgets to buy greenhouse-gas offsets and renewable-energy credits,” according to a report in the Burlington Free Press."

Do carbon offsets provide a false sense of security?

This is from the gristmill blog, they are a bunch of believers in global warming, but they seem to be having a understandable discussion of carbon offsets. Check it out and see how the true believers view carbon offsets.

Carbon Neutral through Carbon Offsets

"Also, a largely unregulated carbon-cutting business has sprung up. In this market, consultants or companies estimate a person’s or company’s output of greenhouse gases. Then, these businesses sell “offsets,” which pay for projects elsewhere that void or sop up an equal amount of emissions — say, by planting trees or, as one new company proposes, fertilizing the ocean so algae can pull the gas out of the air. Recent counts by Business Week magazine and several environmental watchdog groups tally the trade in offsets at more than $100 million a year and growing blazingly fast.

But is the carbon-neutral movement just a gimmick?

On this, environmentalists aren’t neutral, and they don’t agree. Some believe it helps build support, but others argue that these purchases don’t accomplish anything meaningful — other than giving someone a slightly better feeling (or greener reputation) after buying a 6,000-square-foot house or passing the million-mile mark in a frequent-flier program. In fact, to many environmentalists, the carbon-neutral campaign is a sign of the times — easy on the sacrifice and big on the consumerism."

Carbon Offsets, More Fraud?

A sign of potential fraud in the carbon offset market, British airline EasyJet has delayed the lunch of it carbon offsetting scheme. The reasoning for this delay is they have found that the carbon offset market is riddled with “snake oil salesmen”.

“Toby Nicol, EasyJet's communications director, said the company had been shocked by how much money carbon offsetting firms wanted for their service.”We have been quite surprised at the percentage that the offsetting companies would like to take out of the scheme for administration costs. Between 25% and 30% of every pound put in by consumers would go into administrating the company and that was simply too expensive," he said.

There are a lot of people who have dived into the market who are desperate to make a margin from it. There are too many snake oil salesmen in the business.”

Has EasyJet given up on the carbon offsetting market? No, EasyJet is going to buy UN-backed carbon credits on the open market at about 7.50 British pounds per ton, with a launch date sometime this summer. Lets be honest here, the UN's past is a bit checkered, with the Iraq oil for food program as its chief example of out of control fraud. Can EasyJet trust that the UN backed offsets will be any more effective?

Credit Card Environmentalism

There is a hint in this article at an other problem with carbon offsets, that this is just credit card environmentalism. Carbon offsets allow the rich to buy off there indulgences, rather then change they behavior.

“Low-budget airlines in particular have been targeted by environmentalists because they have driven a boom in air travel. The environment minister Ian Pearson labeled Ryanair the "irresponsible face of capitalism" this year after the airline criticized the European emissions trading scheme.”

Targeting the low cost airlines shows that the cost of saving the planet will be born by those on the lowest rungs of the economic ladder.

Carbon Offsets

This article in the International Herald Tribune, opinion page talks about carbon offsets. It covers the pluses and minuses of purchasing carbon offsets:

“But is the carbon-neutral movement just a gimmick?

On this, environmentalists aren't neutral, and they don't agree. Some believe it helps build support, but others argue that these purchases don't accomplish anything meaningful — other than giving someone a slightly better feeling (or greener reputation) after buying a 6,000-square-foot house or passing the million-mile mark in a frequent-flier program. In fact, to many environmentalists, the carbon-neutral campaign is a sign of the times — easy on the sacrifice and big on the consumerism.”

A summary of the article is this is an unregulated industry and it is unlikely that every carbon offset purchased is removing the CO2 that it claims.

Carbon Offsets Checkbook Environmentalism?

Carbon Offsets could be a $100 million dollar market in the U.S. alone. From this article published in Business Week it looks like most carbon offset are either ineffective of fraudulent

Business Week uses TeraPass Inc., (the supplier of carbon offsets to the Academy Awards) project in Springdale Ark as an example of the ineffectiveness of the carbon offset market. This project in a sprawling garbage dump in the Ozark foothills captures methane gas, that as a greenhouse gas is over 20 more power full then CO2. This gas is then burned and converted into CO2 which is far better then methane in the atmosphere. The problem with this project is its effect as a carbon offset is that this project would have happed with or with out the TeraPass Money. I the end TeraPass money is just a supplemental revenue to the owners of the dump Waste management.

More on Carbon Trading Fraud

Al Gore is looking to cash in on carbon trading. His profiteering on Global Warming looks to be able to turn him into a billionaire.

Cheep Carbon Offsets

If your looking to go carbon neutral here is a great Carbon Offset Broker.

Carbon Trading Fraud

The Financial Times has found problems with the carbon credit market. They see it as just a gold rush for a $68 billion dollar market. Looks like a great opportunity for Wall Street to make some big dollars.

Delta Airlines now is offering carbon offsets, you to can be like Al Gore, well with out the private jet.

• The Reference Frame has more in this boondoggle.
• Wikipedia entry on Carbon offset

Much of this push to become carbon neutral looks to have little benefit to the possible Global Warming problem.