CARB and Brown are Jumping on a Sinking Carbon Ship

Russ Steele

The usual process is to jump off a sinking ship, but the Governor and his lackeys at CARB are jumping on the Cap and Trade Ship, which is sinking.  

JoNova has the story on her blog:  Carbon Ship Sinking: Barclays Bank closes its carbon desk

A major European bank closed its US carbon trading business this week in a sign that 2012 is a “make-or-break” year for cap-and-trade programs designed to fight climate change.

London-based Barclays determined the US carbon market, currently comprised of a handful of states, is too small to justify the expense of a dedicated trading desk in New York, according to sources familiar with the decision. Barclays was a major player in US greenhouse-gas trading programs on the East and West coasts and remains active in Europe’s carbon market, the largest in the world. Seth Martin, a Barclays spokesman, declined to comment.

CARB is planning on selling carbon allowances at $10 to $40 a ton. Here a little reality check from a comment on Jo Nova’s blog.

They probably have been done over by the hedge funds. Good shorting to be had by one and all. Reuters reports NZ carbon credits are just off their all time lows at A$5.60 ($5.87 US), EU credits are A$5.40 ($5.66 US)  and the really cool number is UN backed credits fetching a princely A$2.60($2.72 US) last Monday.

How can CARB sell carbon credits for $10 t0 $40 a ton when you can buy them for far less on the global market?

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About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

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