The market has decided this carbon credits are worthless. No wonder Europe is in crisis. The green hoax is costing billions and yielding nothing.
Green Europe Imperiled as Crisis Triggers Carbon Collapse
October 10, 2011, 12:45 PM EDT
UN May Seek Kyoto Extension Without Canada, Japan, Russia
By Kari Lundgren and Stefan Nicola
Oct. 10 (Bloomberg) -- The European sovereign debt crisis that’s spread from Greece to Italy and is roiling the region’s banks now has another potential victim: energy policy.
European Union emission permits, needed by polluters from utilities to cement makers for each ton of the carbon dioxide they put in the atmosphere, slumped to their lowest price in 2 1/2 years on Oct 4. An auction of permits by Greece, trying to avoid the euro area’s first default, worsened a glut of the allowances, UBS AG analyst Per Lekander said last week.
Lower carbon prices discourage European utilities including EON AG and GDF Suez SA from investing in wind farms and solar plants that don’t need permits. The industry needs to spend as much as 900 billion euros ($1.3 trillion) by 2020 to meet a target of getting 20 percent of power from renewable sources, Citigroup Inc. estimates. The economic slowdown is adding to carbon-permit supply as manufacturers and generators sell allowances not needed by idle factories and power plants.