As we are part of the EU you would think that news such as this: EU Carbon Price Collapse. I came across it rather by chance, like most things in the news. I’ve never been a fan of carbon trading, something I did start to deal a little bit with in my time in the City. I feel it’s wrong to trade on projected figures and certain basis of well how much we pollute the planet and how much projected damage we do.
Since 2008 the price of carbon has fallen probably in line with the banking crisis to which we can attribute many drops in trading including currency. However the interesting thing with carbon trading is that in theory you are trading on thin air, to the apparent end of reducing carbon emissions. But in essence you don’t. Those countries with high carbon emissions trade with low producing countries to reduce their carbon output. So on paper they don’t produce as much carbon, but in reality they still are it just costs them to do so. But all in all it doesn’t dramatically reduce pollution. It just makes money for speculators.
I feel the same about the whole carbon foot print bollocks, I leave quite a large footprint with the mass consumer based products which I purchase, holidays I take and activities I enjoy and the number of times I fart a day. But costs and effort of me, just me reducing my carbon foot print won’t stop the ice caps melting and the polar bears losing their icy homes. Like carbon trading it’s a money making scheme, because if your quite a big polluter then you can pay to offset your carbon. Again PAY money, and where you ask does all this money go, into reducing pollution and carbon emissions well no, speculators again and the pockets of those in charge. You can’t use money to stop carbon, unless you completely restructure the way we collect and produce energy. And that, well, it won’t change anytime soon, well not when countries won’t work together and people can make huge sums from this.
Currently the EU is unable to prop up their carbon price, hence the collapse, but this will also have an effect to us here in the UK and our carbon floor tax. Introduced at the beginning of this year, this tax will leave us uncompetitive compare to other EU countries especially as the EU Carbon Price collapses. As the EU is currently refusing to prop up the EU carbon market, this means prices in the UK will be kept higher and UK companies who produce energy will face much higher tax bills than their EU counterparts. Talk about under productivity; it’s like our government like setting us up to fail on a global scale.
Anyway, rant over, for now. I have some football to go listen to and some holiday stuff to sort out. I will update you on how the holiday went next week as I have only just got back, and well I got angry by the news I saw! And the rest………
Image courtesy of gynti_46