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Bonanza, not: With govt manipulation carbon credits rise back to 2008 levels

It’s being hailed as a “soaring investment” but it’s just the fake fiat carbon scheme that has been fiddled back to life. The EU ETS market had too many credits and crashed down to 5 Euro or less by 2013. On deaths door, the EU decided to cull a quarter of the credits for the EU ETS every year starting in 2019 and the price predictably went back up. The big success of this unnecessary unfree market is that it has added a tariff to cheap coal to make it just as expensive as gas, and pushed up electricity prices in the EU.

Any illusion of generating economic wealth, or energy efficiency is purely coincidental. There’s no supply and no demand, no extra products or productivity — and without government force, no market at all for imaginary carbon penances. It draws money from every consumer and hands it to gas, and renewables giants, as well as bankers, crooks and VAT Tax cheats. And if this market goes global it’s potentially a $7 Trillion dollar money-making racket for bankers. No wonder HSBC, Deutche Bank, Goldman Sachs, BBVA and Citigroup want to “save the world”.

 Back to 2008:

EU ETS Prices, 2008 - 2019

Government decisions largely set the EU ETS Prices, 2008 – 2019

Carbon credits are not an investment. They are a speculative bet on what the worlds governments will do. If the public turns against carbon reduction, and the mood changes, the market is a dead-man walking. There’s a lot of money here that has an interest in keeping skeptical views out of the public light. Just saying…

We can tell this is not a real market. Real free markets make things cheaper. Communist markets just make things worse.

Once-Unpopular Carbon Credits Emerge as One of the World’s Best Investments

By DAVID HODARI, Wall Street Journal (The Australian)

Carbon-emission credits, long shunned by traders, are now one of the world’s best-performing investments.

The big players are still financial houses and speculators not generators:

Back in 2013 Banks and trading houses bought two-thirds of carbon permits. Now not much has changed:

The recovery has drawn back investors who largely abandoned the market when prices collapsed last decade.

“It’s attracting hedge-fund speculators,” said Norbert Rücker, head of economics at Swiss private bank Julius Baer. “With this move, carbon has really come back to life this year and it’s attracted a lot of interest — we have clients reaching out to us asking about it.”

Orwellian Translation: “free market” = fake market, and industrial “polluters” = global free fertilizers:

The higher prices mean that it now costs industrial polluters almost as much to use coal as it does to use cleaner natural gas. Putting the two markets on an equal footing means carbon prices are driven by factors similar to the ones that affect gas prices, such as high summer temperatures.

They’re taxing one fuel more than the other so “Equal footing” means “unequal footing.”

Fake markets attract frauds. When you’re selling a product no one needs, no one even cares if it’s fake.

Posts from long ago about the EU ETS


EEX Market
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