Comments on: EU Carbon Market Crashes – Is This Good or Bad?

By: Agroblogger

Agroblogger — Sat, 06 May 2006 21:45:28 +0000

First, I’d like to mention that markets, carbon markets included, tend to be cyclical and risk prone. A 50% fluctuation is steep indeed, and is probably as much a result of the newness of the carbon market as any other factor.
Still, the entire trading scheme makes me wonder…everday millions of tons of carbon are being fixed by forests around the world…carbon that is not accounted for in the current system. Maybe I’m missing something here, but it seems like a community can get their credits certified for carbon that would be fixed anyway…so I’m not really seeing how this offsets anything. I think T. Bittner might be right when he calls it an “artifical market”.

By: T. Bittner

T. Bittner — Fri, 05 May 2006 11:28:41 +0000

As a Canadian whose government signed Kyoto in 1997 and ratified in 2003 only to see millions of dollars leave Canada with no benefit to the environment, no plan for meeting any goals or commitments I have much more respect for activity currently taking place at the State level in the US than the political nonsense that is Kyoto.
What is carbon worth? Good question as we are a carbon based life form. Without it we would not exist. How much is too much?
I would hesitate to refer to what Kyoto has become as a “noble cause” as the environment is very rarely discussed under the Kyoto banner.
Maybe a carbon tax would be more effective than the artificial markets that are being developed. Currently with CDM and Russian hot air everyone could meet their commitment with dollars. Unfortunately the environment will be no better off.

By: Anonymous

Anonymous — Fri, 05 May 2006 02:36:23 +0000

The biggest renegade in this noble cause is the USA ! How can world opinion force them to take a more responsible stance and actively participate in the Kyoto Plan ?
Their participation would not only firm-up prices of CER’s but also help bring much of the worldwide emissions under better control.
UH! We all know that !
It needs a bigger movement to get them roped in!

By: Jason Smith

Jason Smith — Thu, 04 May 2006 17:34:18 +0000

I have to agree Nick. The question is really, what effect can consumer offsets have on the market, more than what effect will this have on consumer offsets. It simply provides more incentive for everyday people to get involved. Otherwise, the true cost/price of CO2 would never be realized.