Latest UN CDM scam

Hot on the tail of the last UN CDM scam comes the latest scam:

BRUSSELS, October 18, 2010 – Incentives created by the UNFCCC Clean Development Mechanism (CDM) have caused a significant shift of adipic acid production from plants in industrialized countries to CDM plants in China and South Korea, a new study shows. This has led to “carbon leakage” – a shift in production that leads to an overall increase in emissions – and the issuance of 13.5 million offsets that represent phantom emissions reductions.

Background: Nitrous oxide, an unwanted by-product in the production of adipic acid, is also a very potent global warming pollutant. Adipic acid is used most commonly to make nylon, and producers in developing nations can earn carbon credits through the Clean Development Mechanism (CDM) by installing and using equipment to destroy their nitrous oxide by-product.  …

Key Findings

The study shows that profits from CDM revenue are so large that they have, in some cases, subsidized adipic acid production costs to below zero, giving CDM plants a large competitive advantage. This has caused a shift in production from non-CDM plants to CDM plants.

“We have known for some time that these projects accrue tremendous profits through the CDM” said Michael Lazarus, a senior scientist at the Stockholm Environment Institute and co-author of the study. “Our new findings show that these profits have evidently led to significant shifts in adipic acid production away from non-CDM plants to CDM plants, and strongly indicate that carbon leakage has occurred”.  …

“Assuming that the plants would have operated at the average global rate, we estimate that this shift in production resulted in about 13.5 million credits being issued in 2008 and 2009 that did not represent actual emissions reductions,” explains co-author Anja Kollmuss. “That is about 20% of all credits issued for adipic acid projects. These credits are bought to offset emission reduction requirements in the EU and elsewhere. They lead to an increase in emissions because the buyers of these offsets are then entitled to increase their emissions.”  “Industrial gas projects caused millions of phantom emission reductions, new study shows

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One Response to “Latest UN CDM scam”

  1. gofer Says:

    The object is not to reduce emissions, it’s to make billions off allowing people to emit as much as they want. Biggest scam in history.

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