Supplier rewarded for higher emissions--Australia

THE State Government is paying Snowy Hydro tens of thousands of dollars as a reward for cutting its greenhouse gas pollution even though its emissions have actually increased.

With dam levels at record lows because of the drought, Snowy Hydro has been forced to generate much more electricity from its gas assets to meet peak electricity contracts.

But the state's greenhouse gas abatement scheme assumes any new gas-fired generation would displace coal-fired power, and should be financially rewarded....

Still a few bugs in the system. The cause? Politicians wanting to be seen as "doing something"

"This scheme is very dangerous because it is creating the impression the Government is doing something about rising greenhouse gas emissions," said a Greens member of the NSW Parliament, John Kaye.

From the Sydney Morning Herald