More On Carbon Offsets

Carbon credits: 'SELL! SELL! SELL!'
By: David Freddoso
Online Opinion Editor
12/22/09 5:02 PM EST
The Financial Times reports that investors who hope to capitalize on your misery by getting into the carbon-trading market are losing money after the failure of the Copenhagen's climate summit to produce anything resembling a real or binding agreement on limiting carbon emissions.
Prices for carbon permits for December 2010 delivery, the benchmark contract for pricing European permits, dropped nearly 10 per cent in early trading, before recovering to end the day 8.3 per cent lower at €12.41...Carbon traders blamed the price fall on the Copenhagen conference, which produced an accord among the world's biggest developed and developing countries to limit their greenhouse gas emissions, but omitted details on what those limits would be.
If and when the government forces you to pay extra for your energy in the name of some presumed environmental benefit, these are the folks who will become rich at your expense.

Cap and Trade Fraud Investigation

US Court Orders Records Unsealed In Cap-And-Trade Fraud Case
By Ian Talley, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- U.S. legislators have obtained a court order unsealing documents in a case involving a multi-million-dollar cap-and-trade fraud.

Republican legislators say the records--due to be opened to the public in early January--could shed light on the potential challenges of policing a new, trillion-dollar commodities market that would be created under climate legislation that Congress is considering.

In a rare filing by House lawyers, Reps. Joe Barton (R., Texas) and Greg Walden (R., Ore.), the ranking members respectively of the Energy Committee and the Oversight Subcommittee, asked a federal district court in California to unseal all the closed records regarding the successful prosecution for fraud of Anne Masters Sholtz, a former California Institute of Technology economist.

Lawmakers say Sholtz's case could expose the weaknesses of a federal cap-and- trade system because it involved the same market mechanism meant to cut emissions.

In particular, said one Republican aide, the case may shed light on the challenges of prosecuting fraud in such a system.

Sholtz, who helped design a small California cap-and-trade program, allegedly hustled New York Investment firm AG Clean Air out of more than $12 million between 1999 and 2001 by selling fake emission credits.

Despite an estimated $50 million to $80 million in claims against her in bankruptcy filings and nine complaints, she pleaded guilty to one of six counts of wire fraud in
2005. Sholtz received what the lawmakers say was a veritable slap on the wrist for the felony--a sentence of five years probation with one year of home detention.

"Did they not have enough proof? Did they have good leads, but faced practical difficulties? Were there witness, evidence, strategic problems? These are the questions that we hope to answer with the unsealed documents," the Republican aide said.

Kill Cap and Trade

Save the planet? Kill cap-and-trade
Examiner Editorial October 30, 2009

If members of Congress need yet another reason to kill the Waxman-Markey bill, the Obama administration's economy-suffocating, job-destroying energy program, Princeton University's Tim Searchinger and his colleagues have a humdinger: Carbon reduction laws encourage widespread deforestation as trees and other vegetation are harvested to produce energy from biomass to replace oil and gas. The problem is that in long run, this process actually increases greenhouse gas emissions, which cap-and-trade is meant to reduce, according to Searchinger.

The Princeton researcher's paper, published Oct. 23 in Science, points out that almost all prior global warming studies failed to take into account the carbon emissions that result from converting cropland and forests to energy production. This accounting error treats all bio-energy as carbon-neutral, the authors say, despite the fact that burning wood and clearing land actually releases quite a large quantity of carbon into the atmosphere.

"By using a worldwide agricultural model to estimate emissions from land-use change, we found that corn-based ethanol, instead of producing a 20% savings, nearly doubles greenhouse emissions over 30 years and increases greenhouse gases for 167 years," the Princeton authors say. "Biofuels from switchgrass, if grown on U.S. corn lands, increase emissions by 50%." Neither the Kyoto Protocol, the U.N.'s Intergovernmental Panel on Climate Change, nor existing European cap-and-trade programs have taken into account widespread deforestation as farmers worldwide respond to the new economic incentives, Searchinger added.

Knee-Cap [the Economy] and Stop Trade

"...from an economic standpoint, the C&T bill should be titled the "Raise the Cost of Living and Ship Jobs Overseas [and reduce the American standard of living to the level of Mexico] Act of 2009."

The purpose of cap and trade (C&T) legislation is to reduce Americans' consumption of fossil fuels — coal, oil, and natural gas — and to speed up the transition to alternate forms of energy, such as wind and solar power. The "cap" part would be a legislated limit to the quantity of carbon dioxide that Americans would be permitted to put into the atmosphere from the burning of fossil fuels. The government would then issue permits that it would sell or give (details are being worked out) to businesses who could then either emit CO2 up to the amount stipulated in their permit, or, if they can curb CO2 emissions below that amount, could sell or "trade" the permit to the highest bidder in the after-market.

The stated overarching goal of proposed C&T is to save the planet from human-caused climate change, which C&T proponents attribute to human emissions of greenhouse gases, primarily CO2 from fossil fuels. These proponents truly believe (despite considerable scientific disagreement) that such measures are necessary to save the earth. Others have a political agenda: If government can regulate energy consumption, then government has great control over economic activity and people's lives — an irresistible lure to central planners, social engineers, utopian visionaries, and megalomaniacs. [not to mention wannabe dictators, marxist idiots, and assorted loonie-tunes]

/snip

We the people, though, should reckon the cost to our liberty. If this principle becomes law, we may face a day when a federal bureaucrat will grant permission to Al Gore to jet around to preach the evils of CO2 emissions while denying Joe Sixpack the right to fly cross-country to see his girlfriend once a month.

Might we emulate the Brits, who currently are devising a "para-police" force to monitor energy consumption?

There is much at stake in the C&T debate. This is one of the major issues of our time. Become informed.