Page 39 - Carbon Frauds and Corruption

Corruption of Bribery

Chapter 6 : Corruption in the “Carbon World”

EU members were allocated 1,909,588,781 AAUs in 1998 of which 213,561,991 were for the UK covering around
40% of its estimated anthropogenic emissions.

It is now obvious that national and LCP baselines were grossly inflated, resulting in excess AAUs
being given to favoured countries and companies. Russia has made windfall profits and so have
Indian steelmakers. This over‐allocation is the main reason why the Kyoto Period has been such a
failure. There were so many excess AAUs flying about that most LCPs had to do nothing to cut
back emissions: on the contrary they were lined up for windfall profits.

Each year, LCPs are required to submit returns to their Designated National Authorities (in the
UK, the Environment Agency), showing to what extent they have complied with their individual
targets through:

 Actual real‐world reductions by changing processes or equipment: such as switching
from coal to natural gas
 Buying surplus AAUs from other LCPs either over‐the‐counter (OTC) or through an
exchange (see page xx)
 Investing in Clean Development Mechanisms that reduce emissions in Non‐Annex 1
countries
 Sponsoring Joint Investment projects that reduce emissions in other Annex 1 countries.
These are similar to CDMs except the “Host” is itself an Annex 1 country

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If a country or individual LCP fails to balance its accounts , they can be fined up to €100 for every
tonne emitted in excess of allowances.

The National Health Service had to buy £8,000,000’s worth of credits (EAUs) to offset heating boilers in some of
its hospitals.

5.5 Kyoto Unravels
The position set out above more of less prevailed – with other Annex 1 countries running their
own Kyoto compliant schemes. The USA created various voluntary and official State schemes
but was, and is still, unconvinced about national “cap and trade” regulations, despite President
Obama’s promises to introduce them.

In December 2009 a conference in Copenhagen (COP 15) was hoped to extend Kyoto beyond
December 2012 but this was a foolish dream without support from the USA, China and India.
Despite the attendance of thousands of delegates‐many in private jets‐Copenhagen was a
disaster for believers. There was no agreement.

The hope was that what was lost in Copenhagen would be recovered in a further conference
(COP 16) in Cancun in late November and December 2010. Although believers portrayed Cancun

39 That is emitted in excess of their allowances or

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