Folks at Globalization and the Environment provide evidence as to why I've been so skeptical about the Carbon Trading game. Japan is staging up to buy its way out of Koyoto commitments with no pain — buying from willing Eastern European sellers who find themselves with a surplus of credits. To their blog:
Nov 23: Today's FT reports that Japan is looking to hoover up shed loads of carbon credits on the cheap to meet its Kyoto agreements.
Such a move, whilst entirely legal is not entirely politically desirable. This article explains why.
This issue of course is that Japan promised to reduce its emissions 6% below its 1990 figure and it is now 8% above. The problem with buying carbon credits is that it does not necessarily reduce emissions by a single tonne of CO2. What then is the point exactly?
The collapse in eastern European heavy industry means they have an excess of credits to sell (and is one reason why Russia signed up in the first place despite dragging its heals for many years). …