A warning for Africa: Carbon trading is a Ponzi scheme
The north's climate debt to Africa should be paid not through such gambling but in genuine income transfers that reach ordinary people, who are taking the brunt of worsening climate chaos by Michael Dorsey and Patrick Bond Business Day (South Africa) January 24, 2012 Last winter, when carbon prices fell 15% in one week, industry analysts called it 'carnage'. Then, in the fortnight before last month's Durban climate summit, carbon prices fell more than 30%, with front-year European Union (EU) Allowance permits dropping below €8,50 a ton. And they have crashed even further since. As Deutsche Bank said during the Durban talks: "We do not expect the pricing outlook to improve materially in the foreseeable future." A UBS analyst predicted a price of less than €3 a ton in coming months because the EU's Emissions Trading Scheme "isn't working" and carbon prices are "already too low to have any significant environmental impact." French bank Société Générale projects that "European carbon