Goreism Coming To Your Neighborhood

The next big scam: carbon dioxide

Posted: January 12, 2010, 10:27 PM by NP Editor

Attempts to create markets for tradeable CO2 are shaping up to be the next Oil-for-Food-sized fraud

By Patricia Adams

D

eloitte Forensic calls it “the white collar crime of the future.” Kroll, a business risk subsidiary of Marsh & McLennan, the global professional services firm, calls it “a fraudster’s dream come true.”

These two global financial services firms are referring to carbon trading markets, a business that is estimated to explode from $132-billion in 2009, mostly in the European Union, to $3-trillion by 2020 as jurisdictions around the world join in carbon trading, part of the “cap and trade” system that governments are embracing.

Under cap and trade, companies need permits for the right to emit CO2 as part of their operations. The permits, in effect, guarantee that excess carbon emissions will be “offset” by third parties that will, for example, sequester carbon by growing trees. These permits, which are being traded on carbon exchanges, akin to stock exchanges, have caught the attention of law enforcement officers, who have seen an upsurge in fraud.

Click here to read more...