… in Eurabia
The EU’s emission trading scheme (ETS) may have been the deciding factor in the closure of the Corus Redcar steel-making plant – reported last week , giving the company a windfall bonus of up to £1.2 billion from the plant closure – on top of other savings.
Earlier this year, Corus – part of the Tata Group Europe – disclosed that its UK steel inventory was “close to exhaustion” and analysts are expecting improved earnings from second-half trading as production is increased to meet a rebound in demand.
Mothballing the efficient Redcar plant (with no expectations of its re-opening) thus fails to make obvious commercial sense, especially as Tata bought the plant only in 2007 as part of its strategy to give it better access to European (including UK markets).
However, revealed by The Times today (although the information has been available since June is an illustration of how valuable an alternative product – “carbon allowances” is to the group.
The paper’s story focuses on the rival ArcelorMittal group, pointing out that it has accumulated 20.8 million surplus allowances (EUAs) given to it free by the EU. With the carbon price at over £13, they are worth about £270 million. But, with additional surplus allowances up to 2012 and an increased carbon price – expected to rise to £30 – the company could have gained assets worth around £1 billion.
[…]
This, even for a company the size of Tara steel, is a considerable windfall, over and above the money it will aready make from the EU scheme. But, with a little manipulation, the company can double its money. By “offshoring” production to India and bringing emissions down – from over twice the EU level – to the level currently produced by the Redcar plant, it stands to make another £200 million per annum from the UN’s Clean Development Mechanism.
Who would have thought, Jonathan Swift was an optimist!
OMG! Your previous title belonged on this, Teh world is being run by crazy people.
So companies are paid to deindustrialize rich places and start productive factories in developing places. Is this what the heads of Europe really want? I know they are now 2IC’s now, because this is what they will they get. On that front, why do you need any immigration now, all the jobs are going elswhere, and Europe can become a pastoral theme park.
Any one see the potential of another bubble developing?
Ok… how can the average person profit from this stupidity?
orvict: Can you “short” CO2 credits?
is boreal forest considered a carbon sink?
is Suncor/PetroCan going to become a tree planter?
how bout all the paper mill/timber mill/industry pant closures in the last 5-10 years, do we get credit for that?
nah, it’s just a big $ scam.
“OMG! Your previous title belonged on this, Teh world is being run by crazy people.”
go look . . . to comment 🙂
I don’t know whether to laugh or cry at the irony.
I’ll choose “cry” because it will be union maroons wailing about they’re loss of income; and, I’ll be busy trying to beat them off with a stick while they try to pry more of my money from me.
Is this what is meant by the law of unintended consequences?
Gee, all we have to do in Canada to avoid crippling economic consequences from carbon credits trading, is SHUT DOWN ALL OUR INDUSTRIES!
Who knew it was SO simple!
Till your fields?
Ixnay, that is so 1960.
Don’t till, and just take the cheque to the bank.
Carbon Trading Pays For Alberta Farmers
Hey, I didn’t till my backyard once in 35 years. Where’s my cheque?
A wee bit OT:
A macleans poll on AGW that actually has an option that I think most of us agree with.
http://www2.macleans.ca/2009/12/07/is-canada-shirking-its-international-obligations-when-it-comes-to-climate-change/
This seems somewhat unsustainable.
This is what happens to Arts Students that were tormented by Engineering and Science students at Universities. They are now running the world and this is the result. Mass hysteria to Mass insanity. Time to storm the Bastille!
“This seems somewhat unsustainable.”
lol
btw, re my comment: their not they’re
If this is the way the game plays out, and there are many that have predicted this, should we expect at some point to see some politicians’ heads on pike
Workers of the Corus plant, how’s that voting Labour thing working out for you?
orvict at December 7, 2009 5:22 PM
It is the average person that pays for it.
What a breathtaking scam. And getting fools and communists to front it too. That’s the sign of master con artists.
Commercial Bank of China, now the world’s largest in market capitilization (easily overtaking Citibank). ICBC has yet to launch an all-out takeover of Western banking, but when it does, there’s nothing that will stop the Chinese from holding a monopoly on world banking.
This should give you a hint at what all this cap and trade/climate change is about.
“Is this what is meant by the law of unintended consequences?”
Sadly, this is the INTENDED consequence in the eyes of the crazy greenies / world governance crowd.
The genius of a Command economy.
Unbelievable. Companies get rich by closing their doors. Where does the money come from to pay for this madness and what about the employees. The lunatics have taken over the asylum.