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Carbon ship sinking: Barclays bank closes its carbon desk

Posted By Joanne Nova On January 21, 2012 @ 1:46 pm In AGW socio-political,Global Warming | Comments Disabled

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″.

Barclays Closes US Carbon Desk In Latest Cap And Trade Setback

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.

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