Video | Business Headlines | Internet | Science | Scientific Ethics | Technology | Search

 


Carbon Trading Open Invitation To Fraud

Carbon Trading Open Invitation To Fraud

Carbon trading is an open invitation to fraud, in the opinion of Auckland energy consultant Bryan Leyland, who is chairman of the economic panel of the New Zealand Climate Science Coalition.

"I first heard about carbon trading at a conference more than 10 years ago. I got up and said 'If I was the financial adviser to the Mafia, I would advise them to get into carbon trading.' Nothing that has happened since then changes my opinion - rather the reverse," said Mr Leyland.

"It is interesting to compare it with electricity trading. In an electricity market, the amount of electricity bought and sold is measured to an accuracy of +/- 0.2% every 30 minutes. On top of that, when you buy electricity, you get an amount of energy of high value that you can use directly for your benefit.

"With carbon trading, it is all different. The amount of greenhouse gas emissions from an industrial plant can be measured to an accuracy of, at best, +/-10%. If you are purchasing carbon credits from, for instance, a forest, the accuracy of measurement is probably something between +/-100%. If it is a tropical forest, it could be minus 150% because there is reasonable evidence that some tropical forests are net emitters of greenhouse gases," Mr Leyland continued.

"But it gets worse. In between the buyer and seller is an 'auditor' who, in theory, can make an accurate judgement as to the quantity of greenhouse gases being traded. He is the direct equivalent of the old inspector of weights and measures or electricity meter reader. If the reading of an electricity meter is fiddled, one party wins and the other party loses. But if an auditor fraudulently states that a forest is absorbing say, 200 tons of carbon dioxide per annum when a more realistic figure might be 100 tons, both parties win. The forest owner wins because he sells more credits. The purchaser of the credits wins because he is out to buy a piece of paper certifying that he purchased carbon credits. If the volume is fiddled upwards, the chances are that the price per tonne will be reduced and, anyway, he probably needs to buy more credits than are available.

"So, to my knowledge, carbon trading is the only commodity trading where it is impossible to establish with reasonable accuracy how much is being bought and sold, where the commodity that is traded is invisible and can perform no useful purpose for the purchaser, and where both parties benefit if the quantities traded have been exaggerated.

"It is, therefore, an open invitation to fraud and that is exactly what is happening all over the world," said Mr Leyland.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

"Don’t Give Up":
End Of Kick-Start Hits KiwiSaver Enrolments

ANZ said new enrolments for the ANZ KiwiSaver Scheme had dropped by more than 50% since the Government announced an immediate end to the $1,000 KiwiSaver kick-start incentive in the Budget last month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Sci-Tech
Search Scoop  
 
 
Powered by Vodafone
NZ independent news