tag:blogger.com,1999:blog-24338064.post4339267526828947076..comments2024-02-11T19:28:27.997+11:00Comments on Personal Reflections: Getting rid of carbon 8 - the series endsJim Belshawhttp://www.blogger.com/profile/10075614280789984767noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-24338064.post-35078844997540614472009-12-16T23:02:59.507+11:002009-12-16T23:02:59.507+11:00KVD, I cannot comment on the details of the Tata c...KVD, I cannot comment on the details of the Tata case because I do not have the facts. However, the material that you provide does not surprise me. <br /><br />One feature of most emission trading schemes are what are called banked credits. You acquire them, and then you can sell them in a specified period. So if Tata has banked credits it kight well be able to sell them for a substantial credit.<br /><br />On the other side of the equation, the mechanisms designed to encourage more efficient production in developing countries might well give Tata a reward of the type you describe because Indian production is bcoming more carbon efficient.<br /><br />All this bears upon one of my constant points, the need to avoid unforseen side-effects.Jim Belshawhttps://www.blogger.com/profile/10075614280789984767noreply@blogger.comtag:blogger.com,1999:blog-24338064.post-33976116975375173412009-12-16T16:56:01.393+11:002009-12-16T16:56:01.393+11:00Jim
Sorry, we live in a grey world, (there being ...Jim<br /><br />Sorry, we live in a grey world, (there being no simple black and white) so I would like to rephrase my questions:<br /><br />1) If this statement of facts was accurate, would this surprise you?<br />2) If this was a possible outcome of a global ETS, would it surprise you?<br />3) no change.<br /><br />kvdAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-24338064.post-29052803661990212502009-12-16T15:56:16.032+11:002009-12-16T15:56:16.032+11:00Dear Jim
From an article cut severely for length,...Dear Jim<br /><br />From an article cut severely for length, but not for meaning:<br /><br />The Indian conglomerate Tata has recently closed its Redcar, UK steelworks with the loss of 1700 jobs. <br /><br />Under the European ETS carbon allowances this may give Tata a gain worth up to £600 million over the three years before current allocations expire.<br /><br />Meanwhile, in India, Tata, plans to increase steel production from 53 million tonnes to 124 million over the same period. By replacing inefficient old plants with new ones which emit only “European levels” of CO2, Tata could claim a further £600 million under the UN’s Clean Development Mechanism<br /><br />Thus, at the end of the day, Redcar will lose its biggest employer and one of the largest manufacturing plants left in Britain, and Tata, having gained up to £1.2 billion from “carbon credits”, will get its new steel plants – while the net amount of CO2 emitted worldwide will not have been reduced a jot.<br /><br />Now Jim, I ask myself the following: <br /><br />1) is this true?<br />2) is this a likely (or even a possible) outcome/model of an ETS?<br />3) who pays the 1.2Bn?<br /><br />Thanks for your series.<br /><br />kvdAnonymousnoreply@blogger.com