March 1, 2022
CarrZee comment:
With Dutch natural gas surging 21% today, something has to give to protect profits from generating power. Is that something EU carbon futures?
Comments my way: mathew@carrzee.net
Relevant Tweets and remember CarrZee’s take from the weekend.
See this thread:
Linked above:
EU Carbon Permits May Suffer More Drops This Week on Russia Sanctions; Oil Seen Rising (1)
–Note this more recent comment
Comment by By Mathew Carr, Feb. 27, 2022
European Union carbon permits may fall tomorrow (Monday) and later in the week because Russian banks and companies fearing sanctions will seek to liquefy any assets they hold that can be easily sold before the sanctions hit.
On Saturday, a group of nations including the United States and the EU moved to block certain Russian banks’ access to the SWIFT international payment system in a signal to Moscow to back off from its military “operation” in Ukraine.
The various banks will face sanctions over time (the timing does not immediately seem clear).
Also “we commit to imposing restrictive measures that will prevent the Russian Central Bank from deploying its international reserves in ways that undermine the impact of our sanctions,” the countries said (see press release copied below).
Good . . . OK . . . That said, now . . . What Is Carbon Emissions Trading?
Emissions trading, sometimes referred to as ‘Cap and Trade’ or ‘Allowance Trading’, is an approach to reducing pollution. This system was designed to protect ‘Human Health’ and ‘The Environment’. Emissions trading programs have two key components. 1 . . . to limit or put a cap on pollution, and, 2 . . . To provide ‘Tradable Allowances’ equal to the limit that authorized ‘Allowance Holders’ can use so they can emit a specific quantity of a pollutant (one ton of CO2). This limit governs how environmental targets, set by governments, can be met. ‘Tradable Allowances’ provide some flexibility for ‘Emissions Generating Companies’ to set their own ‘Compliance Path’ within government guidelines. These ‘Allowances’ can be bought or sold on ’Carbon allowance markets’. These programs are referred to as ‘Market-Based Carbon Emissions Trading Exchanges’.
The Kyoto Protocol of 1997 and the Paris Agreement of 2015 were International Accords laying out the international CO2 emissions goals. The Paris agreement was ratified by all except six countries. These ‘agreements’ have given rise to all the international Emissions targets and all the regulations supporting them.
With these new regulations in place, the pressure on businesses to find ways to reduce their ‘Carbon Footprint’ has grown. Most of today’s solutions involve the buying and selling of credits on ‘Carbon Markets’. What the carbon markets do is turn CO2 emissions into a commodity by creating a price for CO2 emissions. Emissions fall into one of two categories. Carbon Credits or Carbon Offsets, and they can both be bought or sold on a ‘Carbon Market Trading Exchange’. These ‘Exchanges’ are seen as a simple idea that provide market-based solutions to a complex problems.
What are Carbon Credits and Carbon Offsets?
The terms are frequently used interchangeably, but carbon credits and carbon offsets operate on different mechanisms. Carbon Credits, also known as Carbon Allowances, work like ‘Permission Slips’ for Excess Polluters. When a company buys a carbon credit, usually first from the Government then from ‘Carbon Markets’, they gain permission to generate One Ton of CO2 Emissions. With carbon credits, carbon revenue flows vertically from companies to Regulators. Companies who end up with ‘Excess Credits’ like Electric Car companies and Wind Farms or Solar Farms they can sell them to excess polluters for a profit $$$.
How are carbon credits and offsets created?
Organizations with operations that reduce the amount of carbon already in the atmosphere, say by planting more trees or investing in renewable energy like Wind Farms, Solar Farms, Bio Fuel or Electric Cars have the ability to issue carbon offsets in an ‘Open Market’. . . for profit $$$.
https://www.academia.edu/64085546/Electric_Cars_The_Untold_Story_
Also . . .
https://www.academia.edu/71021345/All_Electricity_Even_Renewables_Poisons_Planet_Earth
The offset advantage: New revenue streams
There’s one more big advantage of carbon offsets. If you’re the company selling them, they can be a significant revenue stream! The best example of this is Tesla. Yes, that Tesla we all know and love, the electric car maker, who sold Carbon Credits on the ‘Market-Based Carbon Emissions Trading Exchanges’ to the tune of $518 million in just the first quarter of 2021. That is over 2 Billion dollars worth of credits because their automobiles are declared ‘Emissions Free’ . . . Emissions Free? . . . With what we learned above? . . . is that so . . .??
Herein lies the rub . . .
‘Carbon Allowances’ are A One Trillion Dollar Scam
Carbon Trade is Already Covering the Equivalent of
One Half of World Energy Emissions of $1 Trillion
Intercontinental Exchange Inc. (ICE) has said that trading in ‘Carbon Allowances’ has reached a record volume in 2021 on its various markets — the volume of Buying and Selling reached the equivalent of about one half of ALL global energy emissions. A total of 18 billion tons of ‘Carbon Allowances’ were traded in 2021. Equivalent to an estimated 1 trillion in US dollars. ICE trades by far the biggest market share in the Global market, although other exchanges including the European Energy Exchange (EEX) also handle sizable volumes, as well.
This is a reflection of how companies are using these markets to manage and price their ‘Climate Risk’, as well as meet their ‘Compliance Obligations’. The traded contracts have included a record 15.2 billion tons of EU carbon allowances and a record 2.4 billion tons of California carbon allowances as well as 346 million tons of Regional Greenhouse Gas Initiative allowances. Then also, following its launch in May 2021, there is the new 255-million-ton U.K. carbon allowances.
This year ICE will be expanding their carbon credit markets to value and support the preservation of ‘natural assets’, as well as launching their first carbon futures index on contract to provide access to the global cost of emissions in one trading instrument. This from . . . Gordon Bennett, Managing Director of Utility Markets at ICE.
Who will stand against this injustice? . . . Who will go on the record? . . . Where is the Media?
The Truth . . . The Environment as a subject is, Explosive! You speak against its Edicts at your Peril. Accept the truth as prescribed from upon high, or suffer the Scorn and the Ridicule among your peers. Not to mention by society as a whole. When that one stone gets overturned proving Collusion and Willful Deception. The un-scientific foundations supporting the Environmental Movement since its inception will render it . . . Null.
Sadly, to date, no self-respecting Media Representative wants to risk the Ire of their Peers or the Mandarins ruling the Environmental Movement or The Purveyors of Globalization in our New Social Construct. For they are ‘Brothers-in-Arms’, so to speak. Who wants to be the ONE to open Pandora’s Box? . . . It would be like pulling Hans Brinker’s finger from the Dyke or Killing the Goose that Lays the Golden Egg . . . The old adage . . .
There are none so blind as those who will not see . . .
Adamant Naturalist
Jim Le Maistre
Aldergrove BC
Copyright 2022
Full Document . . .
https://www.academia.edu/71023588/Batteries_Renewable_Energy_and_EV_s_The_Ultimate_in_Environmental_Destruction