Global Carbon Markets peaked in 2011 at €96bn euro. Over the next two years they plummeted to €36bn* euro collapsing by 60%. Though the press didn’t seem in a hurry to convey that, and if I search, no government funded agency has done a graph like this below (perhaps I missed it?)
The decline was looking pretty terminal, but the EU government has now voted to backload (which means hold off the permits and cut the supply). This is a desperate measure involving over half the new permits to keep the “free” market alive.
Instead, the news agencies with greener leanings have underplayed the fall, and the 60% decline is now invisibly massaged in places like BusinessGreen into a “market set to soar”. This is not just media-spin but a news-through-a-centrifuge.
The value of the world’s carbon markets is set to soar to €64bn (£53bn) this year, up from €39bn in 2013, as the European Union launches a temporary fix to revive its ailing emissions trading system.
Peak carbon came and went. Those 2014 figures are speculation. Otherwise the trend was terminal.
A breathless journalist at Thompson Reuters describes the possible revival of the market back to 30% below [...]
Oh the dilemma. German Greens have been so “successful” that coal use is rising fast. They helped get rid of the nukes in 2011, punished coal, and subsidized “renewables”. But woe…. energy has to come from somewhere, so the paradoxical crunch comes. Green policies mean that everyone is poorer, but the cheapest energy comes from coal …
The coal industry must be praying for more Green activism:
“IT’S been a black Christmas for green thinkers as Germany, the world leader in rooftop solar and pride of the renewable energy revolution has confirmed its rapid return to coal.
After scrapping nuclear power, Germany’s carbon dioxide emissions are back on the rise as the country clamours to reopen some of the dirtiest brown coalmines that have been closed since the reunification of east and west. The Australian
Though some say the problem is “carbon credits” are too cheap. (We need to be poorer?)
“…new figures show that coal power output in 2013 reached its highest level in more than 20 years. Researchers blame cheap CO2 emissions permits, and demand urgent reforms.
The stats: Germany is using almost as much coal as it did in 1990:
In 1990, Germany’s brown coal-fired [...]
During the northern winter, there were more speculators in the carbon market than genuine players.
Those bankers must be very concerned about the environment.
Speculators main buyers in EU carbon auctions -report 17 May 2013
LONDON, May 17 (Reuters Point Carbon) – Banks and trading houses bought more than two thirds of the 138 million carbon permits sold by 25 European governments between Nov. 2012 and Feb. 2013 to help power plants and factories comply with the EU Emissions Trading Scheme, an EU Commission report published Friday showed.
Six “credit institutions” and six “investment firms” dominated the 35 auctions held over that period, picking up as much as 80 percent of the allowances sold in January alone, the report said, adding that only one of those companies was eligible to bid on behalf of clients.
Things have changed in the carbon market. From 2005-2012 most allowances were given away free, but now they are being sold at auction. So the period starting Nov 2012 was probably the first sales under the new system. It is expected that the bankers and traders will sell the permits to the power companies in the futures [...]
New Zealand signed up for an emissions trading scheme in November 2009, fully expecting Australia to sign in an ETS the next week. Thanks to one vote and an Abbot win, Australia didn’t sign up then, but will get one (unless things change) in 2015.
Kyoto 1 ends in December 31, 2012, and not a moment too soon. Last week Australia signed up for Kyoto 2, but this time New Zealand didn’t.
[Reuters] Neighbouring New Zealand said it would not sign up for the next phase and would instead join a separate convention, including large greenhouse gas emitters such as the United States and China.
Kyoto 2 will only include 15% of emissions. The New Zealanders didn’t want “in” with such a small ineffectual crowd, and will wait for the US and China.
[Reuters] Australia in July introduced a A$23 ($24) per tonne carbon tax on top polluters, which will move into an emissions trading scheme from mid 2015. Australia and the European Union have agreed to link their trading schemes by 2018.
New Zealand’s abandonment of Kyoto 2 followed changes to its emissions trading scheme (ETS), which allowed unlimited use of carbon credits to meet targets at near-record [...]
Global Carbon Market trading climbed to $176 billion in 2011 according to the The World Bank, which has just released it’s annual State and Trends of The Carbon Market in 2012. That makes it about the same value as total global wheat production — which supplies about 20% of the calories consumed by the 7 billion people on planet Earth.
The global carbon market disguises itself as an angel against the greedy corporates. Yet it is, itself, a giant corporate playing field. The mainstream media remains largely silent on the “vested interests” represented by this major industry that did not even exist 10 years ago.
Global Carbon Markets are worth billions
Was 2011 the peak of global carbon trading? Looks all downhill from here.
A record number of emissions products were traded in 2011, even though prices of EU carbon permits and international offsets fells well below $10 a tonne late in the year. The prices have fallen, but the volumes have increased. Look out, the average price in 2011 was $18.80US, but the prices in 2012 are less than half that. It will take a monster increase in volumes in 2012 to keep raising the total market [...]
More signs Australia is leaping onto a burning ship as it starts carbon taxing, just as the largest carbon markets are winding up:
(Reuters) – Bavaria’s stock exchange will abandon its carbon emissions certificate trading operations in the EU-traded CO2 market on June 30 after volumes in Europe “plunged to practically zero” in recent months, it said on Tuesday.
The EU’s emissions trading scheme (EU ETS) limits the carbon dioxide emissions of the 27-nation bloc’s factories and power plants and covers nearly half of EU emissions.
EU prices are down 60% over the last 12 months
“Emissions trading will never find its feet again without radical political action,” said Christine Bortenlaenger, the head of the exchange…
The Borse management claim they were closing because of the fraud and hacking as well as the market downturn:
The collapse of the Man-Made Myth continues apace. You may not read headlines as such (at least not in major dailies) but all the signs are there.
People who we never would have imagined speaking against the Big Scare Campaign are now doing so. Key glaciers are not melting and corals are happy. Governments won’t tell you it’s over, but they are behaving that way (the Australian one excepted, due to an election fluke that gave the Greens the balance of power). The Catholic Herald headlined it: Is the ‘anthropogenic global warming’ consensus on the point of collapse?
The last year of carbon trading in EUR's continues to fall. (Click to enlarge).
Mini update: The carbon market is being referred to as “dead”. Johannes Teyssen, chief executive of Germany’s EON, urged policymakers to make fixes. “Let’s talk real: the ETS is bust, it’s dead,” Mr Teyssen said in Brussels this week, adding: “I don’t know a single person in the world that would invest a dime based on ETS signals.” [full story: Financial Times]. Point Carbon analysts have downgraded the forecast price of carbon credits for the second time in two months as the carbon market [...]
A small group of selected rulers just raised a hand, changed the rules, and sent billions of dollars from some people to some others.
This type of arbitrary control over the carbon market shows why it is a misnomer to call it a “free” market, and why a “market” is the wrong tool to try to use to reduce emissions. CO2 is a universal molecule, found in every walk of life and many inanimate processes. We can’t include them all, and someone somewhere gets to decide which ones count and which ones don’t, and how many of them we are allowed to emit in the first place.
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 [...]
The End Game of the Great Global Warming Myth draws closer
With impeccable timing the Australian Government is snatching defeat from the jaws of what could have been a glorious victory. Just as Gore, activists and then Hansen admit they lost, the infighting among the big scare campaign begins, the EU pulls the pin on Kyoto, and UK news outlets are asking if a Little Ice Age is on the way…
No one in officialdom is admitting the science has changed, or that they got it wrong, but the world is behaving as though it no longer believes.
What are the odds? Today the Australian Government is voting on the “Clean Energy Bill” (which will henceforth be known as the “Costly Energy Bill”) and at the same time the EU is saying: Enough! The big boys have to play or we are out. Which means the impossible trio of USA, China and India need to sign up to Kyoto II.
They might as well have said: “It’s all over for us. Kyoto II is dead”.
EU sets conditions for signing up to Kyoto II
LUXEMBOURG – European Union environment ministers — responsible for only 11 percent of global carbon emissions [...]
Carbon prices have plummeted in the US.
(So they are that much closer to their true value…)
The Regional Greenhouse Gas Initiative sold 40.7 million permits for $1.88 each, 19 cents lower than the last auction held in March and 2 cents above the minimum allowable bid, the cap-and-trade program said on its website today. Each permit in the carbon trading program for power plants from Maryland to Maine represents one ton of carbon dioxide.
Why are prices so low? On the one hand, people have doubts about Congress creating a national market for them. Fair enough. But on the other hand, “Tim Cheung, an analyst with Bloomberg New Energy Finance said: “Demand for power hasn’t increased with the economic recovery…”
Since people aren’t buying as much electricity there are spare “permits to pollute” all over the place. But it begs the question of what kind of economic recovery it is, if it doesn’t need … power?
Can I sell you some air over China?
Meanwhile some NGOs are waking up to the scammability of permits for invisible unverifiable goods. CDMWatch was set up by a group of NGO’s and has found the firms that sell the [...]
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.
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