Crash - there goes the carbon credit market

Have you recently had one of those pesky, harassing telephone calls from someone trying to sell you carbon credit? I’ve no idea how they got my number but so far this week I’ve had 4 calls and each time politely declined, but their persistence got me thinking, people are often only this persistent when they are desperate to sell!

So I made a few calls of my own to some commodity trading friends and sure enough the market is in free fall. In fact prices have recently fallen by a whopping 30 percent after the European Parliament postponed the auctioning of new permits under the European Emissions Trading Scheme.

The key point: too many permits were being issued, so the market was flooded. Additionally one of the biggest selling carbon credits in the UAE “came from a Chinese project that destroys a greenhouse gas called HFC23, a byproduct of making coolant. From the beginning of this month such credits were banned from the European Union Emission Trading Scheme.” 

The Financial Times pulls no punches about carbon credits which it classifies as the “Highest Risk.” “Beware of cold callers promoting carbon trading schemes or investment opportunities. They are usually fraudulent. The Emissions Trading System allows industrial groups to trade emissions permits, but it is not suitable for individual investors – and the price of the permits has collapsed in recent years.”

Have you been harassed or succumbed to the incessant telephone calls of carbon credit salespeople? 


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