Why Wall Street Laments A Missed Chance to Price Carbon

Why? Because it cuts into their profit making abilities. I purposely excluded the word pollution- that’s plain manipulative. Carbon is an element. We live on a carbon based planet. We are carbon life forms. Trees get their mass from carbon. We exhale carbon. We ingest carbon. Etc., Carbon is an element.Ecoliteracy- the heaven's know people desperately need more ecoliteracy  Carbon IS the trees, the grass, it’s in the soil and more

"Carbon is the graphite in our pencils, the diamond in our rings, the oil in our cars, the sugar in our coffee, the DNA in our cells, the air in our lungs, the food on our plates, the cattle in our fields, the forest in our parks, the cement in our sidewalks, the steel in our skyscrapers, the charcoal in our grills, the fizz in our sodas, the foam in our fire extinguishers, the ink in our pens, the plastic in our toys, the wood in our chairs, the leather in our jackets, the battery in our cars, the rubber in our tires, the coal in our power plants, the nano in our nanotechnology, and the life in our soils.Carbon is also a cycle"

Facts about Carbon

Carbon markets are especially prone to corruption and fraud when they are contaminated with carbon offsets.

 An energy commodity? Interesting. And, since there is an absence of anything physical it is obviously vulnerable to speculation. Imagine that? I mean who would have ever thought of anything so unique, a commodity of nothingness... save for speculators, oil companies, banks and governments hungry for tax revenue.

Ten years ago the agenda was clear. It's not the environment stupid! It's the profiteering and the control...Wall Street wants to, has long wanted to, turn carbon into an exploitable resource.  For profit. Because it’s, invisible, abundant and abundantly profitable.  The so called ‘greens’ went along to greenwash the planned profiteering. Only the willfully blind cannot see what is right, straight, directly in front of them! There will be no “reining” in of carbon. That’s absurd. It’s not possible on a carbon planet. There will only be exploitative pricing and increased global impoverishment. bnnbloomberg- wall street laments a missed chance to price (carbon) pollution

It’s not just the protesters and Greta (carbon messiah) Thunberg who were disappointed by the outcome of the United Nations climate talks in Madrid.Businesses from banks to major polluters see a missed opportunity and even some risks in the decision to shelve work on adding market mechanisms as a tool to rein in the greenhouse gases warming the planet.From JPMorgan Chase & Co. to Goldman Sachs Group Inc., executives are noticing the rising alarm from scientists and environment groups and want clarity from policymakers about how rules will change. To them, inaction means not business-as-usual but uncertainty about who will shape policies including the cost of carbon emissions.

Business just hates uncertainty.. uncertainty makes it difficult to make profits

“If there’s going to be a higher price, then from a pure financial standpoint, what that means is that it will reduce future free cash flow of your company, in addition to the risk of stranded assets,” said Jennifer Wu, global head of sustainable investing at JP Morgan Asset Management. “Policy makers are under tremendous pressure to design and implement policies that will accelerate the pace of decarbonization that will impact all sectors.”For a second year in a row, the talks that ended last weekend were aiming to flesh out Article 6 of the Paris Agreement on climate change. That section of the landmark deal negotiated in 2015 allows mechanisms like carbon trading to be used in meeting targets to rein in fossil fuel emissions.The concept is simple: Nations that cut more than their targets or create projects that cut emissions can sell credits representing the savings. Those can be bought by those who have fallen short. That would harness market forces in identifying the cheapest way to cut pollution -- and give industry an incentive to act.

Carbon markets are especially prone to corruption and fraud when they are contaminated with carbon offsets.

“Carbon markets are absolutely essential in large complex economies,” said Robert Stavins, a Harvard University professor who has advised both Republican and Democratic presidents in the U.S. on environmental policies. To Stavins, “it’s inconceivable” that any set of government rules could deliver pollution cuts more efficiently than a market given how many things emit carbon.Carbon markets have sprouted up in more than 50 jurisdictions. The biggest, in the European Union, has delivered a surge in carbon prices that is tilting the economics of the power generation business away from the most polluting fuels.Yet designing a global carbon market is easier said than done. Envoys drawn from energy and environment ministries stumbled on writing a rulebook to set up the program. There were many issues: measuring and verifying the savings projects claim to generate, establishing a central registry to keep track of credits, how to ensure countries can’t double-count savings both by claiming an emissions cut and then selling a credit representing that reduction.

And, since there is an absence of anything physical it is obviously vulnerable to speculation. Imagine that? I mean who would have ever thought of anything so unique, a commodity of nothingness... save for speculators, oil companies, banks and governments hungry for tax revenue.

An early version of a UN carbon market known as the Clean Development Mechanism ran into those problems. It lost credibility, leading to a plunge in the value of its certificates.Without more developed carbon markets, companies have the prospect for fewer visible price signals to show how quickly they will be forced to clamp down on pollution. In an op-ed in the Financial Times on Monday, Goldman Sachs Group Inc. Chief Executive Officer David Solomon urged governments to put a price on the cost of carbon, whether through a cap and trade system, a carbon tax or other means.“The markets can and will do much to address climate change, but given the magnitude and urgency of this challenge, that will not be enough,” Solomon wrote. “In most places, there is no pricing mechanism to capture the cost of greenhouse gas emissions to society.”That leaves executives with a quandary. Many of them have difficulty cutting emissions because what they do is inherently carbon intensive. Steel mills, cement kilns, oil refineries and glass makers all have two problems: they both consume a great deal of heat and use chemical processes that release greenhouse gases. Even if all their heat came from renewables, their chemistry puts out greenhouse gases.That means it will be impossible for nations to zero out fossil fuel emissions without a major change in policy. The two main options are either carbon market mechanisms allowing polluters to offset emissions with credits or carbon capture and storage technology, which requires subsidies before it works financially. In the jargon of the talks, that means either abatement in terms of reducing emissions or using offsets or allowances from some kind of market.

“We are having discussions with our clients, and the question is should we continue with voluntary markets or wait for what comes out of the Paris Agreement,” said Mauricio Bermudez Neubauer, a principal director in Accenture Plc’s strategy business. “At every company I talk to, the decarbonization strategy has an abatement component and an offset strategy.”“Our clients are more worried about what investors and their customers are demanding of them now in terms of climate action,” he said. “Carbon markets are part of that toolkit. The lack of clarity is a concern. It makes planning more difficult.”The political spotlight now moves to Glasgow, where in a year’s time the U.K. will host the next round of climate talks. There will be another push for a deal on markets at that meeting.But industry and carbon trading advocates are likely to move ahead with their own efforts to deliver mechanisms that allow companies to offset their pollution. Regions like the European Union, California, the U.S. northeast and China have their own standards in place, and those will inform how others act even in the absence of a central guiding force from the UN.“After negotiators failed a second year in a row to agree on guidance for markets, it’s time to move on,” said Nathaniel Keohane, who watches the talks for the Environmental Defense Fund. “Countries that are serious about using carbon markets should move forward to set their own strong rules. Such a coalition of carbon markets could pave the way for faster, deeper cuts in greenhouse gas emissions.”

Another link

For a second year, they were unable to agree on the creation of a system of credits for projects that would cut emissions. They also didn’t endorse any language about how spur finance for fighting climate change, one of the pillars of the international discussions that have been running almost three decades.The delegates from environment and energy ministries stumbled over the details for a new market instrument to rein in pollution. They were trying to work out how to prevent double counting of credits and integrate into the new system an existing mechanism that funnels at least $138 billion into green projects. (Those would be debt based dollars of course- good for banksters)The impasse leaves companies that encouraged carbon trading, including the oil major Royal Dutch Shell Plc and the Spanish utility Iberdrola SA, with fewer price signals showing how quickly the cost of pollution aka life  is rising.             

AGW is one hell of psyop!