"It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong." Richard P. Feynman

Tuesday, November 22, 2011

$287 Billion Carbon Waste in Europe and they wonder why they are broke!

The giant Swiss bank UBS has slammed the EU emissions trading scheme as a huge waste of 287 billion euros and having negligible impact on cutting emissions. The same EU turkeys running this boondoggle  are now taking over failed economies of Greece and Italy on the basis of supposed financial expertise.God help Europe! UBS also has bad news for Australia's carbon tax proponents saying that the EU market is on the verge of a crash next year and carbon price set locally at A$23 per tonne could go as low as 3 Euros a tonne in Europe making a farce of our carbon tax.
Meanwhile the Treasury is being very coy about the assumptions underpinning the carbon tax and is refusing to release the figures which has one wondering what they are hiding!

SWISS banking giant UBS says the European Union's emissions trading scheme has cost the continent's consumers $287 billion for "almost zero impact" on cutting carbon emissions, and has warned that the EU's carbon pricing market is on the verge of a crash next year.
In a damning report to clients, UBS Investment Research said that had the €210bn the European ETS had cost consumers been used in a targeted approach to replace the EU's dirtiest power plants, emissions could have been reduced by 43 per cent "instead of almost zero impact on the back of emissions trading".
Describing the EU's ETS as having "limited benefits and embarrassing consequences", the report said there was fading political support for the scheme, the price was too low to have any significant environmental impact and it had provided windfall profits to market participants, paid for by electricity customers.
The report's criticism of the EU's ETS follows Barack Obama's confirmation last week that the US would not have a cap-and-trade scheme and Canada's refusal to implement an ETS.
The opposition last night seized on the UBS report, with climate action spokesman Greg Hunt saying it destroyed the Gillard government's argument that pricing carbon was the lowest-cost way to cut emissions and that "the world's biggest carbon tax just got bigger".
Mr Hunt last night demanded the government release the assumptions underpinning the Treasury modelling used to assess the impact of the carbon tax. The move follows repeated demands from Coalition senators Mathias Cormann and Ron Boswell for the modelling to be released after official evidence to Senate hearings that the underpinning data was not publicly available.
A spokesman for Climate Change Minister Greg Combet said that, by starting with a fixed price, the carbon price mechanism would give businesses certainty over their obligations and time to gain familiarity with the system before it moved to a flexible price from 2015. "All the advice from leading economists and respected institutions like the Productivity Commission, the OECD and the IMF is that market mechanisms to price carbon are the lowest-cost and most efficient way of reducing carbon pollution," he said.
In the November 17 report, UBS forecast the EU carbon price would average €5 a tonne for 2012-13 with a floor of €3, attributing the slump to a large surplus of permits. "We see few buyers of the surplus until after a 'crash'," the report said.
It argued the surplus could continue until 2025 when the ETS would work as it was supposed to.


  1. All this stupidity over a totally natural trace gas we all exhale, which is essential to plant growth and has negligible effect on the climate.

    Future historians are going to laugh at the ignorance of early 21st Century 'experts'. Sigh.

  2. "Future generations will wonder in bemused amazement that the early 21st century's developed world went into hysterical panic over a globally averaged temperature increase of a few tenths of a degree, and, on the basis of gross exaggerations of highly uncertain computer projections combined into implausible chains of inference, proceeded to contemplate a roll-back of the industrial age." MIT Professor Richard Lindzen, PhD, Atmospheric Science

  3. Here's the Reuters version not behind a paywall..



  4. And today the New Zealand market



  5. and again..