Big banks weigh risks, rewards of California’s new CO2 market

Carbon Tax, Global ‘Warming’ and Smart Grids – welcome to the New International Economic Order

This push towards a cashless carbon/energy-based currency seems to have started as early as 1932. With today’s technology, and the rolling out of the Smart Grid around the globe – we can seen now, the steps taken by the elite to achieve this goal. 

It is now obvious that major turning points such as: Nixon decoupling the dollar from gold, petro-dollars, the environment movement/Kyoto, peak oil and stimulus package spending – were all desired steps towards an Artificial Intelligence-controlled hi-tech future.I recommend reading these articles in the following order. However, if you suffer from short-attention-span or lack-of-time disorders, read the final article first:

Following last week’s successful test of the state’s auction platform, the reality is starting to settle in: California carbon trading has overcome legal and political challenges to position itself a mere 10 weeks away from its first official CO2 permit sale.

 

The carbon market’s success or failure will sway U.S. environmental policy for years to come, and early-moving Canadian banks like Bank of Nova Scotia (Scotiabank) and the Royal Bank of Canada, as well European banks like Deutsche Bank and Barclays, could play a critical role in that outcome.

 

Banks facilitate the purchases and sales of carbon credits for their clients, advise company executives on how to keep their costs down, and ultimately help them meet their environmental goals.

 

Profits on Carbon Credits Drive Output of a Harmful Gas

But so far, most brand-name investment banks have either kept their distance or already walked away, wary of pumping precious capital into the nascent market, especially in light of their tumultuous experience in the European carbon market.

 

Just as California hopes to learn from the mistakes made by their counterparts in Europe, where the eight-year-old market has been beset with plunging prices and regulatory uncertainty, banks hope to marshal their European experience to give them an advantage in California.

 

“We’ve been trading in Europe for years, so we have a deep understanding of carbon right now,” said Anthony D’Agostino, director of emissions markets for the Royal Bank of Canada.

 

“To replicate this in California is a no-brainer for us,” he said.  more

 

Carbon market chaos strikes again

What a surprise: The free-market-that-is-not-free leaps from one scandal to the next. In a real free market where salesmen sell something real, and buyers buy something they want, people can’t get away with cheating, or not for long.If someone sold you a bulk carrier of coal, and it turned up empty, you’d notice.

But, if someone sold you two million Certified Emissions Reductions (CERs) that were worthless, how could you tell? They are “certified”. They are real “certificates”, and as long as you believe they exist, perhaps they do? Welcome to the world of fiat currencies, where confidence doesn’t just make or break a market; it’s its sole underwriter.

Times Online reports on the Chaos in the carbon market over recycled permits.

The Hungarian Government, the cheeky sods, figured out that if CERs were issued by the UN (and not the EU), they could use them to write off the obligations of some Hungarian companies, and then, apparently, sell them again, so others could use them to write off their obligations, too.

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