Supply and demand of CO2 emissions are not set by a free market (you know, voluntary and willing participants exchanging things for mutual benefit). The bureaucrats just mandated an illusion of market forces, within a range set by said ‘crats. The price of carbon credits had gotten too painfully low for the rulers and their patrons and fans, so something had to be “done”. They made the carbon caps more stringent. If the price was too high, they would have loosened them (and they admit as much below). This has nothing to do [...]

I can hardly let the demise of the Chicago Climate Exchange go by without a note.

Didn’t I point out that if carbon trading was a free market, nobody would pay a cent?

Well, hail the triumph of the free market.

(Yes, a couple of weeks back, when the news came out that the CCX was closing, it did make my day.)

But as Steven Milloy points out the death of the US national carbon market has barely made a mention in the news.

How did the Green press react? Denial:

“[There are] no implications for the EU and UK,” Emilie Mazzacurati, head of carbon research for North America at Point Carbon, told BusinessGreen in an email.

No implications? None? And would they have said that if new markets had blossomed in, say, Japan or Brazil?

The market opened in Nov 2000, and as Milloy notes, with a red carpet future:

The CCX was the brainchild of Northwestern University business professor Richard Sandor, who used $1.1 million in grants from the Chicago-based left-wing Joyce Foundation to launch the CCX. For his efforts, Time named [...]

… If this was Exxon pushing a PDF promoting skeptical views, it would be on the front page tomorrow. Where are the front page headlines?

“Bankers feed scare-mongering report”

Instead it’s just Deutsche Bank try to save the world their profit line.

Just in case you are missing your daily dose of being spoon fed propaganda by Bankers who want your money, see Climate Spectator Balancing reason and risk, where Deutsche Bank is helping the skeptics by giving us yet another example of just how desperate they are to get carbon trading running.

Q: When will the bankers worry about whales?

(Ans: When they can trade Humpback Credits.)

The good news is we are getting to them, and we are marking the lines they need to jump over. They now admit it looks bad when they denigrate scientists (they finally “get” that they shouldn’t call scientists deniers):

Although the scientific community has already addressed the sceptic arguments in some detail, there is still a public perception that scientists have been dismissive of the sceptic viewpoint,

Watch how they pretend to care about the science (science-schmaltz), [...]

What a surprise: The free-market-that-is-not-free leaps from one scandal to the next. In a real free market where salesmen sell something real, and buyers buy something they want, people can’t get away with cheating, or not for long.

If someone sold you a bulk carrier of coal, and it turned up empty, you’d notice.

But, if someone sold you two million Certified Emissions Reductions (CERs) that were worthless, how could you tell? They are “certified”. They are real “certificates”, and as long as you believe they exist, perhaps they do? Welcome to the world of fiat currencies, where confidence doesn’t just make or break a market; it’s its sole underwriter.

Times Online reports on the Chaos in the carbon market over recycled permits.

The Hungarian Government, the cheeky sods, figured out that if CERs were issued by the UN (and not the EU), they could use them to write off the obligations of some Hungarian companies, and then, apparently, sell them again, so others could use them to write off their obligations, too.

It’s like reselling a three-course meal after it’s been eaten.

When confronted, the Hungarian Government claimed the used CERs were only sold to non-European [...]

It’s Day 43 without food, and Peter Spencer grows weaker. For those who don’t know, Peter Spencer’s farm has been stolen from him by our government through Native Vegetation Legislation — which locked up 80 – 90%  of his entire farm but paid him no compensation. The regrowth on his farm holds “carbon credits” of supposed value to the Commonwealth, yet Peter has been obliged by law to pay the rates on that land-that-holds-these-carbon-credits, and the mortgage for the right to do nothing with this land that really belongs to the Commonwealth. Is this not an extortionate tax?

Prime Minister Kevin Rudd has declined all requests to meet Peter.

In a grand failure of journalism, our largest dailies apparently think angry tweeting travelers is more important than that a $10 billion dollars crime, and a life in the balance.

Peter Spencer tried ingenious means to work within the rules. But he has been driven into bankruptcy. The 200 days he spent in court, with all costs associated with just trying to have his case heard, added to the burden. (200 days!) After there was no other route left open to [...]

Banking is not a secret but no one tells you how it works… it’s hard to get your head around it, but if everyone understood, some aspects would be outlawed tomorrow (just like they used to be).

Greens and bankers make strange bedfellows. The bankers know where the Greens are coming from, but the Greens need to find out why bankers, “the paper aristocracy”, are so keen to save the planet. It’s an unholy alliance.

This is the US Money Base graph. Base money is cash and reserves at the central bank. It’s a graph to stop you in your tracks, starting from 1918 and going up to this week. It took 90 years to grow the US money base up to about 800 billion dollars, then in four months from August 2008  it doubled. This is the parlous state of our “managed” paper currencies. Just as one fiat system collapses, some people want to set up another.

In a [...]

Norways’ DNV (Det Norse Veritas, “The Norwegian Truth”) was the largest auditor of the infamous CDMs (Clean Development Mechanisms) until it was suspended last December when it was caught selling carbon credits for projects it hadn’t checked. At the time it was so large it had approved fully half of all CDM credits on the market. Its excess workload was transferred to number two auditor, SGS, and shock, this week, SGS has been caught and suspended because it couldn’t prove it’s staff had properly vetted projects either. Indeed it couldn’t show that they were even trained to do that vetting. (Did SGS not see this coming?)

When the West offered money to buy the rights to air-with-slightly-less-carbon-dioxide-than-it-could-have-had, China and India put up their hands and said “Yes please” 900 times. And why wouldn’t they? CDMs are worth about 20% of all emissions trades, which amounted to $126 billion in 2008. Up until the global financial crisis it was doubling annually, like all good ponzi schemes do.

This supposedly “free market” has none of the normal limits which make it hard for companies to get away with cheating … namely a connection [...]

Say hello to the real new force in climate science—banks.

The Shadow of Stratospheric Climate Money. Far north South Australia, Aug 2009.

In the 2008-2009 financial year, Bush threw billions on the table with financial rescues and tax credits, only to be wildly outdone by Obama.

The new funding provisions made since the financial emergency of Sept 2008 are not included in the previous table of climate funds that amounted to $79 billion (so far). It’s difficult to assign the rescue package figures into strict financial years—yet the new numbers are titanic, and step right out of the scales drawn on the past funding graphs.

The financial recovery legislation that President Bush signed1 on October 3 last year included the Energy Improvement and Extension Act of 20082 which contained about $17 billion3 in tax incentives for clean energy services.

Then in February 2009, the $787 billion American Recovery and Reinvestment Act4 was signed into law, [...]