Doing the Global Greenhouse Gas deal seems to be becoming a new global trade thanks to Kyoto, carbon trading, off-setting and carbon credits. At the end of last year the largest deal yet was brokered by the World Bank. European and Asian companies and others will pay two Chinese chemical companies $1.02 billion to reduce output of HFC23, a heat-trapping gas 11,700 times stronger than carbon dioxide.
The deal will reduce emissions by about 19 million tonnes of carbon dioxide equivalent annually, according to the World Bank. About 75% of the money to purchase the reductions came from private capital, it said. Additional participants included entities in World Bank managed funds including the Danish Carbon Fund, the Italian Carbon Fund, Deutsche Bank, Mitsui & Co and two entities of Natsource LLC, which calls itself the world’s largest greenhouse gas asset manager.
Clicking on the above link to Natsource you will see that it serves to sell carbon credits on behalf of a number of large American companies. It appears that the Chinese deal is about the World Bank saying to those Natsource companies, ‘Well done on reducing your sources of pollution. We’ll buy those carbon credits you’ve earned and use them towards cancelling some chemical emissions in China’.
If China was under the Kyoto agreement then it could be purchasing those carbon credits directly from a company such as Natsource and therefore paying for the right to pollute. Of course this pollution payment should eventually encourage that Chinese chemical company to clean up its act rather than waste money on pollution payments. That’s meant to be the idea!
With countries like China out of the Kyoto equation we get deals like this one brokered by the World Bank. The ‘west’ pays China to clean up its act instead. In the meantime the Chinese economy races toward becoming the number one global powerhouse. The west is subsidising China’s success!
OK. Game over. Scrap the Kyoto Agreement. Bring in the World Bank’s Global Environment Facility (GEF) to run the show. Let the GEF bring all countries into a Global Carbon Trading index. Continue with the CDM but, let’s stop the farce of subsidising global economic growth behind closed doors.