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Cap and Trade may not be about saving the planet. Could it be about money and power?
Europe’s Carbon Mafia, And Ours
Posted 05/06/2010 07:18 PM ET
Corruption: The carbon trading system being pushed here has spawned crime and fraud across the pond. Cap-and-trade is not about saving the planet. It’s about money and power, and absolute power corrupting absolutely.
All across Europe authorities have been conducting raids, rounding up individuals involved in a new version of Climate-gate. This time the data aren’t corrupted. Europe’s Emissions Trading System is. The system is so sick, it’s turned out to be a scam built upon a scam.
Twenty-five people have been arrested in raids by British and German authorities as part of a pan-European crackdown on carbon credit VAT tax fraud.
U.K. officials announced raids on 81 offices and homes, nabbing 13 people in England and eight in Scotland. The operation involved 450 investigators from Her Majesty’s Revenue and Customs office.
German authorities raided 230 locations, including the headquarters of Deutsche Bank in Frankfurt and the offices of RWE, one of the largest energy firms in Europe. The German operation involved 1,000 investigators targeting 50 companies and 150 suspects.
The amount of money involved in carbon trading is huge and the temptations vast. While our Congress demagogues about banks and their “complex financial instruments,” they are simple compared to cap-and-trade, which as we have noted involves essentially the buying and selling of air. Throw in an oppressive value-added tax and you have a recipe for corruption and fraud.
Last December, Europol, the European criminal intelligence agency, announced that Emissions Trading System fraud had resulted in about 5 billion euros in lost revenues as Europe’s carbon traders schemed to avoid paying Europe’s VAT and pocket the difference. In announcing the raids, the agency said that as much as 90% of Europe’s carbon trades were the result of fraudulent activity.
“Carbon markets are highly susceptible to fraud, given their complexity and the fact that it’s not always clear what is being traded,” says Oscar Reyes of Carbon Trade Watch.
Climate change has been found to be a fraud. Now the system to fight it has been. Yet it’s that system the administration and others want to establish here through cap-and-trade legislation such as Waxman-Markey and Kerry-Boxer.
As we also have noted, the mechanism for such phantom carbon trading here has already been established in the form of the Chicago Climate Exchange. The Joyce Foundation in 2000 and 2001 provided the seed money to start CCX when Barack Obama sat on its board.