Monday, April 7, 2008

WWF blasts new windfalls for EU coal-burners

The thing to understand about carbon markets is:

You are creating money out of thin air.

That means there is ultimately only one question:

Who gets the money?

From Reuters:

EU plans for curbing emissions will hand utilities windfall profits of up to 71 billion euros ($111.5 billion) between 2008 and 2012 even as they burn highly polluting coal, environmental group WWF said on Monday.

Power companies in five European Union countries -- Britain, Germany, Spain, Italy and Poland, which are among the biggest coal burners -- stand to earn windfalls totaling between 23 and 71 billion euros during the second phase of the bloc's Emissions Trading Scheme, WWF said.
WWF said it was vital, in the subsequent phase of the ETS starting in 2013, that the EU stick to plans to sell emission permits, rather than continue to give them out free, eliminating such profits