News More on Carbon Credit Rip-offs
Wednesday, May 9, 2007 at 05:08PM
The rush to go green suggests easy money for investors in projects that reduce carbon dioxide output. The reality is otherwise: Many carbon projects turn out to be high risk.
Project failures and over-optimism among developers, together with a tendency to exaggerate in applications, mean that 40% to 50% of the carbon credits anticipated under the Kyoto protocol will never be delivered, carbon traders and analysts say. Tom Frost, carbon analyst at Numis Securities, said: "I would expect that about half of the credits would not come through in the end."
Source: Fiona Harvey and Jonathan Wheatley, London Financial Times, 7 May 2007
"Power generators are Europe's biggest carbon emitters, but analysts say they will make annual profits from the [EU emissions] trading scheme well in excess of 5 billion euros (US$7 billion), assuming a steady carbon price of 20 euros where the price is now."
Source: Gerard Wynn, Reuters, 4 May 2007
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