climateandcapitalism.com
Carbon offsets are the world's worst performing commodity
In addition to being a scam that does nothing to reduce emissions, the do-called clean development mechanism is a disaster for investors who hoped to profit from climate change. by Gerard Wynn and Nina Chestney Planet Ark, August 8, 2011 Carbon offsets neared all-time lows Friday, confirming their status as the world's worst performing commodity, as slumping demand meets rising supply of the U.N. instrument traded under the Kyoto Protocol. A worsening global economic outlook has dented prices for emissions permits which depend on a robust economy belching greenhouse gases into the air, and has also impacted oil, grains, coal and natural gas. Carbon offsets have fared uniquely badly because a U.N. climate panel continues to print new offsets, regardless of a widening glut in emissions permits in the main demand market, the European Union's carbon market. Countries and companies in the developed world can buy offsets as a way to meet emissions caps agreed under Kyoto, paying for cuts in