Gillard once lauded the genius of the carbon market. That part of the “free” market which is free to move, is moving — and right out. The smart money is saying that carbon trading is a dead dog. It’s a has-been-tulip, a sick puppy, a sinking ship.
The future of global carbon trading is so “certain” that Barclays Bank is not even bothering to leave one part time guy in the US office with a post box, so they can pretend they still have an interest in it. The mood has so changed, they see an advantage in letting the world know they’re not wasting a single cent more on carbon trading in the United States of America. Well that made my day. .
“That is not good news for carbon-dioxide trading, especially not in the US,”
Barclays was the first UK bank to set up a carbon trading desk, and fast to move into carbon trading: “Barclays Capital is the most active player in the emissions trading market, having traded some 300 million tonnes as at February 2007″.
By Simon Lomax
Published: January 20, 2012
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. “That is not good news for carbon-dioxide trading, especially not in the US,” says Gary Hart, a market analyst for ICAP Energy and a veteran pollution-rights trader. “There’s such uncertainty around the use of carbon cap-and-trade programs.”
The carbon cap-and-trade concept, which regulates the greenhouse gases linked to climate change by letting companies buy and sell pollution allowances, has suffered a major reversal of fortune since President Barack Obama’s election in 2008.
How times have changed. Back in 2007, Barclays said: The market fluctuated greatly during 2006, but we believe in its long-term importance.
So much for that eh?
H/t To Joe Bast and Willie Soon.