Page 80 - Carbon Frauds and Corruption

Corruption of Bribery

Chapter 6 : Corruption in the “Carbon World”

In 2004 23% of global carbon dioxide emissions or 6.2 gigatonnes were traded internationally primarily as exports
from China and other emerging markets to consumers in more developed countries. In the United Kingdom and
France around 30% of consumption‐based emissions were imported

The bottom line is that the measurement of greenhouse gas inventory allows unbridled
opportunities for spin and is not of the real world. This is also true for the calculation of corporate
emissions where consumption, rather than production figures, are recommended as the baseline.
This lead to the ridiculous position where national inventories are calculated on one basis while
those at a corporate level on another.

9.3 National Allocation Plans (NAP) and Assigned Amount Units (Kyoto)
The opening NAPs were hopelessly overgenerous, resulting in the phase to 2012 and the ETS
being a nonsense.

There was an over‐ allocation of 9,882,000,000 AAUs valued at Euros 118,584,000,000 to Central and Eastern
European Countries (CEE) in excess of their “Commitment Reserve”

In 2008‐2009, the Slovak Government sold 15 million over‐allocated AAUs to a newly and apparently specially
formed American company called Interblue Group LLC. The media exposed a cosy relationship between
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Interblue’s owners and the Ministry of the Environment but the then Minister refused to comment. Media
pressure continued, ultimately leading to three Environmental Ministers leaving government and disclosure of a
sales price of €5.05 a tonne which was approximately half the prevailing market rate. It also emerged that
Interblue had options to buy a further 35 million AAUs at a knockdown price and had sold the first tranche making
a profit of around €45 million. As pressure mounted‐ in December 2009‐ the American company closed down and
assigned its rights to "Interblue Europe" based in Switzerland. By July 2011 criminal complaints had been filed
although informed observers considered they would not succeed and that the potential loss to Slovakia was in the
order of €216 million.

The newly appointed Slovak government has reacted in typical political fashion by imposing an 80% tax on all
AAU sales for the next two years. This is expected to raise €150 million in much‐needed revenues.

Just pausing here for a moment: doesn't all of this skulduggery, involving the science, the
recording and modelling as well as the politics of the "Carbon World" and the massive plundering
of funds make you wonder whether giving an FPO a Homer Simpson mouse mat at Christmas is
such a serious crime?

By any measure the Kyoto phases to 2012 were a disaster, but this has not stopped political
bombast along the lines that the EU will meet it targets. If it does, it will only be because initial
amounts were over‐allocated and emissions have reduced purely because of the economic crisis.
It is nothing to crow about. In the real world, emissions have NOT been reduced.

90 One having worked as an adviser in the Ministry

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