Category: Carbon Credit Watch

Carbon credit scams add to the growing list of alleged fraud cases

(October 6, 2009) Officials in at least five European countries are investigating an international carbon credit scam considered to be worth more than $1.5 billion. According to a recent report for the Guardian, the scam was originally coordinated by gangs in Britain and Spain who bought and sold emissions allowances across borders in order to avoid paying Value Added Tax (VAT).

At what cost are carbon credits funding hydro projects in the developing world

(August 7, 2009) The Carbon Development Mechanism (CDM), a market-based tool developed by the UN to cut green house gas emissions, may be heralding a boon in hydro development projects in China and the developing world – and doing so at the cost of the environment and local landowners. As policy makers and environmentalists across the globe prepare for the Climate Change Conference in Copenhagen this winter, criticisms of carbon credit schemes like the CDM are begining to surface.

Carbon credit fraud in the UK

(August 6, 2009) A recent article in the Telegraph examines the rise in UK tax fraud in carbon emissions trading market. The scheme is a variation on the VAT carousel fraud, where criminals import products VAT-free from EU member states, then sell the goods in the UK with a VAT charge, only to quickly disappear without turning over the VAT charge to the UK’s customs and tax department, Her Majesty’s Revenue & Customs.

Killing mother nature with our green creed

(July 5, 2009) We in Britain are inclined to see the worst in massive state-driven projects, especially when these are promoted by governments that are undemocratic. We were right to be sceptical about the Soviet Union’s decision in the 1960s to divert rivers away from the Aral Sea, now largely a desert, and more recently about China’s Three Gorges Dam, which seems to be causing landslides, the displacement of millions of people and the extinction of the Yangtze River dolphin.

How Kyoto credit scams work

(January 27, 2009) In another striking expose of carbon credit lunacy, AP reporters Joe McDonald and Charles Hanley report that a German coal-fired utility is buying “carbon credits” from a Chinese hydro dam, displacing thousands of poor farmers in the process, driving up electricity costs in Germany, and yet doing nothing for the environment.

Carbon Offsets: The U.S. Voluntary Market Is Growing, but Quality Assurance Poses Challenges for Market Participants

(August 1, 2008) GAO was asked to examine (1) the scope of the U.S. voluntary carbon offset market, including the role of the federal government; (2) the extent to which mechanisms for ensuring the credibility of offsets are available and used and what, if any, related information is shared with consumers; and (3) trade-offs associated with increased oversight of the U.S. market and including offsets in climate change mitigation policies. This report is based on analysis of literature and data, interviews with stakeholders, and GAO’s purchase of offsets.