Showing posts with label Climate/Clean Energy/Cap-and-Trade. Show all posts
Showing posts with label Climate/Clean Energy/Cap-and-Trade. Show all posts

September 28, 2010

The CLEAR Act is a Back Door to Passing Job-killing Cap-and-Trade

U.S. House Puts Oceans, Coasts Under UN; Senate Vote Will Seal the Deal

By Carmen Reynolds, Paul McKain and Karen Schoen, Boogai.net
September 21, 2010
“It’s too late; it’ll just have to be stopped in the Senate,” Tom, the young male answering the phone in U.S. Rep. John Boehner’s (R-Ohio) Washington D.C. office, said about HR 3534 (CLEAR Act).
This is the globalist bill designed to give away our land, oceans, adjacent land masses and Great Lakes to an international body, and makes us pay $900 million per year until 2040.

HR 3534 is a thinly disguised permanent roadblock to American energy which drives American companies out of the Gulf, delays future drilling, increases dependency on foreign oil, implements climate change legislation and youth education programs; but most important, it mandates membership in the Law of the Sea Treaty (LOST) without the required two-thirds vote to ratify it in the U.S. Senate. [Read more at 'LOST' below.]

The House passed the CLEAR Act (HR 3534) 209-193, July 30, 2010. This bill was originally introduced July 8, 2009, but was resurrected by the recent Deep Water Horizon oil spill crisis. According to www.govtrack.us, a debate may be taking place on a companion bill in the Senate, rather than on this particular bill. This bill was read for the second time Aug. 4, 2010, and placed on the Senate Legislative Calendar under General Orders, Calendar No. 510. No official Senate Bill number exists as of yet. http://www.govtrack.us/congress/bill.xpd?bill=h111-3534

Some have said this bill would be a long shot to be approved in the Senate or it will take a while to surface. Similar assessments were made about the health-care bill. Past precedent reflects how a 2,200+-page bill can be created, printed, members held hostage, and that same bill voted on within hours to facilitate holiday recess.

This bill assesses a Conservation Fee of $2 per barrel of oil and 20 cents per million BTUs of natural gas for all leases on Federal onshore and offshore lands (Section 802). This will jettison America’s energy prices for oil and gas through the roof!

Truth is, HR 3534 could have been stopped in the House and wasn’t. Why? Because 21 absent Republicans chose not to show up for this critical vote, while another REP just voted Present: U.S. Rep. Gary Miller (CA-42). This legislation was so egregious — more than a handful of Democrats voted “nay,” which makes the Republicans’ absence in the House chamber for the vote even more questionable. Be reminded that 193 + 17 absent votes would have killed the bill.

The Consolidated Land, Energy, Aquatic Restoration Act of 2009 (aka: CLEAR Act, HR 3534) gives away ownership of America’s oceans to the United Nations and sectors America into nine geographic areas. This bill possesses a cap and trade/climate change component as well.

America will be forced to become a member of the UN Law of the Sea Treaty (aka: LOST), circumventing the normal two-thirds U.S. Senate vote necessary for ratification of any treaty. This was accomplished surreptitiously via Section 106 of the bill, which specifies that Executive Orders, rules, regulations, directives or delegations of authority that precede the effective date of this act are applicable to the CLEAR Act.

It just so happens two important documents did precede the CLEAR Act — documents that contain the deleterious intent and scope of the bill: Obama’s Stewardship of the Oceans, Our Coasts and the Great Lakes Executive Order, July 19, 2010, and the Interim Report of the Interagency Ocean Policy Task Force, July 10, 2009.

Look at the time line very closely:

  • 9-8-2009: The CLEAR Act is introduced in Congress
  • 9-10-2009: Interim Report
  • The Interim Report states that the Interagency Ocean Policy Task Force includes adherence to the Law of the Sea Treaty (page 14). Its purpose is to establish a comprehensive set of rules governing the oceans. The Law of the Sea Treaty calls for technology transfers and wealth transfers from developed to undeveloped nations, and requires parties to the treaty to adopt regulations and laws to control pollution of the marine environment — all under the authority of the United Nations. Such provisions were among the reasons President Ronald Reagan rejected the treaty in 1982. As Edwin Meese, U.S. Attorney General under President Reagan explained recently, “…it was out of step with the concepts of economic liberty and free enterprise that Ronald Reagan was to inspire throughout the world.”

    This Interim Report will provide a recommended framework for coastal and marine spatial planning and addresses conservation, economic activity, user conflicts and sustainable use — as well as social justice. Previously, there was no money for National Marine Fisheries Service to implement its mandates and to update its fisheries data collection system. But now with the “international flavor,” $900 million a year will be dedicated to a “global” approach to our land, oceans, coastal areas and Great Lakes. [Read more at footnote 1]

    http://www.whitehouse.gov/assets/documents/09_17_09_Interim_Report_of_Task_Force_FINAL2.pdf

  • 4-20-2010: BP Oil Spill. The Federal government would not accept or provide help, allowing oil to reach shores, allowing BP to dump hundreds of millions of barrel of Corexit (toxic) into the Gulf, poisoning the Gulf for future generations (www.thegulfspeaks.com).
  • 5-20-2010: US forces moratorium on drilling, Judge says not constitutional, but the Feds issue a new version of a moratorium. Thousands are put out of work, and hundreds of millions are lost in revenues.

    Wonder why the Feds did nothing for 100 days? Instead we got this Executive Order:

  • 7-19-2010: Executive Order

    Moving to the Executive Order, Obama hereby orders as follows in Section 2 (b) (iii): pursuing the United State’s accession into the Law of the Sea Convention. Note the intent to make an end run around the constitutionally required separate two-thirds U.S. Senate vote necessary to ratify a treaty by burying this in associated documents – not in the bill itself. [Read more at footnote 2]

    CLEAR Act (Consolidated Land, Energy and Aquatic Resources, HR3534)

    This act creates the Regional Outer Continental Shelf Council which will coordinate siting and development of energy resources and prepare OCS strategies. What will these strategies entail? Further moratoriums? High costs for permitting?

    It amends the Land and Water Conservation fund to make $900 million available to the fund for each fiscal year until 2040 without further appropriation. It allows grants to coastal states and Indian tribes, the Secretary of the Interior to update regional assessments, regional ocean partnerships and regional coordinating councils, ensuring government, nongovernment organizations and academic entities are considered (Section 605 (a) (3) (A) (B) and (C).

    Pay attention to Section 106-e: References –relating to the Service in statutes Executive Orders, rules, regulations, directives, or delegations of authority that precede the effective date of this act are deemed to refer as appropriate to the Department, to its officers, employees, or agents, or to its corresponding organizational units or functions. Congress will no longer be needed to vote on those pesky little treaties; the UN will take care of everything.

    The CLEAR Act repeals the Energy Policy Act of 2005 by removing royalty incentives for natural gas production from deep wells in shallow Gulf waters, removes royalty relief for deep-water production, and directs the Secretary of the Interior to establish fees for leases with less than commercial quantities. So here is the Cap and Trade/ Climate part and job-killing component of the legislation. Don’t forget the Conservation Fees of $2 per barrel of oil and 20 cents per BTU of natural gas in Section 802 will be that much more we consumers must pay.

    It prohibits the following authorities from developing a fishery management plan, which is the way we have been doing business: National Oceanic and Atmospheric Administration, Secretary of Commerce and Regional Fishery Management Councils. In other words, current management of our oceans within the United States will be superseded by the National Ocean Council, comprised of some of the most radical environmentalists in our Administration, co-chaired by Nancy Sutley, White House Council on Environmental Quality and Dr. John P. Holdren, White House Office of Science and Technology Policy.

    http://www.govtrack.us/congress/bill.xpd?bill=h111-3534&tab=summary

    http://www.whitehouse.gov/blog/2010/07/19/meet-national-ocean-council

    The true intent of the CLEAR Act and its associated documents will change the way we do business with regard to our land, oceans, coastal areas and Great Lakes. All air space above the oceans, what operates in, through, on or is derived from underneath the water, will be subject to taxes as a world resource to the United Nations – Agenda 21. These areas will no longer be owned and managed solely by the United States, as they are newly defined as a global revenue, “social justice” source per the Law of the Sea Treaty.

    All life in these waterways and all adjacent land masses will be directly affected by this legislation. Decisions will be guided by the Rio Declaration of 1992, requiring no scientific proof of threats or damage to justify corrective action, more regulations and fines.

    Consensus is the objective, but the president will make the final decision if one can’t be reached. The Administration will retain the final determination on resolving disputes with States and their governors (Section 222). [Read more at footnote 3]

    http://www.eoearth.org/article/United_Nations_Conference_on_Environment_and_Development_(UNCED),_Rio_de_Janeiro,_Brazil#gen2

  • 7-30-2010: The House of Representatives passes the CLEAR ACT. Did House REP’s read it? Or are they sheep, thieves or traitors, proud of themselves for giving our AMERICA away?

    READ THE BILL SENATORSThe House just gave away our sovereignty, and we are paying $900 million per year until 2040 to create three new bureaucracies: Bureau of Energy and Resource Management, Bureau of Safety and Environmental Enforcement and the Office of Natural Resources Revenue, plus all the inspectors and accountants that accompany them. No telling how much of this will be funneled through the International entities and councils even before the additional global taxes are eventually assessed on top of this.

It doesn’t take a rocket scientist to ascertain the way to stop any sovereignty-killing legislation is in the House, not in the Senate. This is due to sheer numbers and because of the past “assists” bipolar senators such as Snowe, Collins, Lugar, Graham, McCain, Voinovich, Brownback, Castle and Scott Brown have provided.

Sen. Bill Nelson (D-FL) is a strong proponent of the Law of the Sea Treaty. Other Republican senators that support this legislation include: Alexander (R-TN) and Murkowski (R-AK). Previously supportive were former Sens. Allen (VA), Hagel (NE), and Chafee (RI). There is no way to determine whether their replacements have been influenced (pay to play?) for upcoming votes. Remember, America has already missed the “House” opportunity because of Republicans not doing their jobs:

Those Republicans in the House that let America down by not being present and voting:

Parker Griffith (R-AL) C.W. Young (R-FL) Michael Rogers (R-MI)

John Shadegg (R-AZ) John Linder (GA) W. Akin (R-MO)

George Radanovich (R-CA) Stephen Buyer (R-IN) Roy Blount (R-MO)

Devin Nunes (R-CA) Jerry Moran (R-KS) Henry Brown (R-SC)

Kevin McCarthy (R-CA) Todd Tiahrt (R-KS) James Barrett (R-SC)

Howard McKeon (R-CA) Geoff Davis (R-KY) Zach Wamp (R-TN)

John Campbell (R-CA) Pete Hoekstra (R-MI) Samuel Johnson (R-TX)

Voting Present: Gary Miller (R-CA-42)

Source: http://www.govtrack.us/congress/vote.xpd?vote=h2010-513

It is now incumbent on Americans, regardless of party, to contact senators to insist that America stay America — retaining sovereign rights to our lands, oceans, waterways, Great Lakes, our minerals, recreational and commercial fishing industries, transocean cables, commerce, oil/gas energy production, food sources, and the right to operate navy vessels to defend ourselves, including submarines that carry weapons.

The Senate must not vote in any way, shape or form for the sovereignty-robbing Consolidated Land, Energy, Aquatic Restoration Act, period.

Paul McKain, Independent candidate for Florida’s U.S. House District 2, researched and uncovered the initial information contained in this article after being asked to speak at a 9-11 Memorial Weekend in Northwest Florida. He is a former teacher, 23-year firefighter and inventor. He can be contacted at www.PaulMcKain.com.

Carmen Reynolds is a retired Air Force lieutenant colonel with a BS in Criminology and Law Enforcement, MA in Business Personnel Management and BA in Journalism. She is Editor-in-Chief of boogai.net.

Karen Schoen is a mortgage broker/owner and former teacher. She is the organizer of the Washington County Tea Party, thegulfspeaks.com and a radio show host on Repatriot Radio.

__________________________________________________________

  1. Force recommendations regarding sustainable use of oceans, coastal areas and Great Lakes resources will be consistent with international law, including international law as reflected in the 1982 United Nations Convention on the Law of the Sea. Further, it mandates international collaboration with the Artic Council, the International Maritime Organization, the International Whaling Commission and the Law of the Sea Treaty.

    Spatial planning is double speak for catch shares, a concept that has not been reached by consensus of the commercial and recreational fishermen stakeholders involved. With the help of legislators, these stakeholders were previously advocating more flexibility in the Magnuson-Stevens Act. This would allow for more funding for the National Marine Fisheries Service to perform new stock assessments, as well as third-party, independent stock assessments, based on up- to-date data.

    This report makes continual reference to resiliency and adaptation to climate change, ocean acidification and human interference on pages 2, 4, 5, 7, 8, 9,10,11,13,14,15,16. It makes reference to the division of our country into spatial divisions on pages 2, 4, 6, 7, 8, 13, 14. Continual references are made to land use, starting on page 11. Joining the Law of the Sea Treaty starts on pages 2, 5, 12, 14, 16. Creation of the National Ocean Council is addressed on pages 5, 6, 7, 19, 20, 21.

    Problematic is this statement: “Decisions concerning our oceans will be guided by the precautionary approach as reflected in the Rio Declaration of 1992 — stating that where there are threats of damage, lack of full scientific knowledge will not be used to postpone cost-effective measures.” http://www.eoearth.org/article/United_Nations_Conference_on_Environment_and_Development_(UNCED),_Rio_de_Janeiro,_Brazil#gen2

    So if we humans are threatening the waters or the land, does that mean no scientific basis must be established before cost-effective measures are established and implemented to curtail man’s potential damage or harm to this water or land? In other words, no basis in science will be required to prove these hypothetical concepts or beliefs. So decisions don’t have to be evidence-based.

    Further, monies will be used to create a diverse, interdisciplinary ocean-literate workforce that has the appropriate skills and training to capitalize on the opportunities as needed. In addition, formal and informal education programs will be developed and implemented to target grades K-12 and beyond which would create opportunities for enhanced appreciation of coastal and ocean issues and better prepare the workforce of the future (pages 31, 32).

    http://www.whitehouse.gov/assets/documents/09_17_09_Interim_Report_of_Task_Force_FINAL2.pdf

  2. This Executive Order assigns the National Ocean Council responsibility for implementation of the National Policy, ensuring execution of both the policy and the Administration’s objectives. Ultimately, it gives overall control of all other councils to the National Ocean Council.

    Specifically, this order divides the United States into nine separate regions, initially affecting 30 states. The president will be the ultimate decision authority if a consensus can’t be reached (per Section 5 (b)). This is nothing short of absolutely scary!

    The Department of the Treasury will maintain the Ocean Resources and Conservation and Assistance Fund to spend the $900 million annually for grants to coastal states and Indian tribes, the Oceans, Coastal and Great Lakes Program to be developed under this plan, and regional ocean partnerships.

    http://www.whitehouse.gov/the-press-office/executive-order-stewardship-ocean-our-coasts-and-great-lakes

    Three parts to the Order:

    According to this order the United States will be divided into 9 separate regions — initially affecting 30 states.

    • Clear ACT H.R. 3534/H.R. 5626 Creates the Regional Outer Continental Shelf Council

      a. coordinate siting and development of energy resources

      b. prepare Outer Continental Shelf strategies — very vague statement!

    • Each region will be dealt with separately, BUT all decisions will be made by CONSENSUS. If an agreement cannot be reached — the President will have the overall decision making power. As per Section 5 (b).

    • Amends the Land and Water Conservation Fund to:

      Make $900 million available to the fund for each fiscal year until 2040 without further appropriation. Establishes in the Treasury — the Ocean Resources and Conservation and Assistance Fund (ORCA) to spend the $900 million.

  3. Agenda 21 and Sustainable Development

    If your freedom is important to you, the most effective action that you can take is to e-mail this article and Michael Shaw’s “Understanding Agenda 21 Sustainable Development” booklet to all of your State Legislators, County Commissioners/ Superintendents and City Council members.

    Agenda 21, the international plan of action to sustainable development, outlines key policies for achieving sustainable development that meets the needs of the poor and recognizes the limits of development to meet global needs. Agenda 21 has become the blueprint for sustainability and forms the basis for sustainable development strategies. It attempts to define a balance between production, consumption, population, development, and the Earth’s life-supporting capacity. It addresses poverty, excessive consumption, health and education, cities and agriculture; food and natural resource management and several more subjects. Its 40 chapters are broken up into four sections:

    1. Social and economic dimensions: developing countries; poverty; consumption patterns; population; health; human settlements; integrating environment and development.

    2. Conservation and management of resources: atmosphere; land; forests; deserts; mountains; agriculture; biodiversity; biotechnology; oceans; fresh water; toxic chemicals; hazardous, radioactive and solid waste and sewage.

    3. Strengthening the role of major groups: women; children and youth; indigenous peoples; non-governmental organizations; local authorities; workers; business and industry; farmers; scientists and technologists.

    4. Means of implementation: finance; technology transfer; science; education; capacity-building; international institutions; legal measures; information.

  4. Law of the Sea Treaty (LOST)

    http://www.usasurvival.org/ck42705.shtml

    According to Cliff Kincaid, America’s Survival, Inc., the UN Convention on the Law of the Sea Treaty is a measure so extreme that former U.S. Ambassador to the U.N. Jeane Kirkpatrick said it was viewed as the cornerstone of a Marxist-oriented New International Economic Order (NIEO). This was conceived as a scheme to transfer money and technology from the U.S. and other developed countries to the Third World.1 Kirkpatrick strongly opposed ratification of LOST.

    Elisabeth Mann Borgese, a world government activist, was described as the “Mother of the Oceans” or “First Lady of the Oceans” for her role in crafting and promoting LOST.5 She not only stated her admiration for Karl Marx, the father of communism, but was an ardent advocate of the New International Economic Order.

    Borgese identified several “major issues” on which LOST and the NIEO “could reinforce each other.” These included:

    • LOST’s recognition of the oceans being the “Common Heritage of Mankind,” thereby placing poor countries on an “equal” relationship with advanced countries and “a right to share in the resources that had been declared to be the Common Heritage of Mankind.”

    • Creation of Exclusive Economic Zones, giving coastal states control “over all resources and economic uses in a 200-mile zone.”

    • Establishment of the International Seabed Authority, giving developing countries a role in “financial decision-making” on a global level.
  5. An official 1997 World Federalist Association publication declared:

    “The final treaty marked real progress in establishing global governance by…stipulating that mining of the seabeds beyond national waters should require payment of royalties to the LOS [Law of the Sea] organization, thereby creating a funding resource that would be independent of voluntary contributions by the treaty member nations. These are the elements of a limited world government in a very restricted field that is nevertheless significant.” (emphasis added).17

    From acceptance of the concept of “the common heritage of mankind,” Borgese figured that adoption of global taxes would follow. Gradually, she wrote, “a development tax might be levied on all commercial uses of the global commons, starting with the oceans…”30

    While she was described as the mother or First Lady of the Oceans, Borgese described Avid Pardo as “the father of the Law of the Sea” who proposed “a tax to be paid by States on the exploitation of natural resources within national ocean space.” This concept, also embraced by Borgese, was incorporated in LOST.32

    It was in 1967 that Pardo,33 who became a Maltese delegate to the United Nations,34 proclaimed that the seas beyond national jurisdiction belong to “the common heritage of mankind.” He declared that the poor of the world wanted a small percentage of the profits from undersea mini

    Borgese made it clear that key provisions of the treaty — never eliminated or altered by amendment — would guarantee establishment of this “new world order.” Foremost among these, she cited

    The International Seabed Authority, the “first institution to apply the economics of the Common Heritage in the No-man’s land of the deep ocean floor…”

    She believed that the International Seabed Authority and coastal states could regulate “the routing, laying and the maintenance” of fiber optic cables on the ocean floor.41 This would include, she said, “the payment of fees for licenses, property taxes for cable head-ends, etc. The Authority, at present, has no such powers, but clearly, it should have them.”

    She added, “For the safety of the cables themselves, the Authority must ensure the avoidance of conflict of uses of the area, it must agree to the routing and know exactly where these cables are and be informed about their maintenance. In return for these regulatory activities the Authority would be entitled to some payments. A minimal tax, either in the form of a Tobin tax, let us say of 0.001 percent on the trillion dollar annual business transacted through the cables, crossing the Area which is the Common Heritage of Mankind would not only revitalize the Authority but change the whole picture of international development cooperation and constitute a first positive answer to the insistent call ‘by the World Bank, the United Nations system and the developing countries’ for ‘innovative ways’ of generating ‘new and additional funding’ to enable developing countries to implement all the Conventions, Agreements and programs emanating from the Earth Summit of 1992.”

    One former Law of the Sea Treaty negotiator told us:

    There are a lot of pollution provisions in the convention. It sounds like they can do more with it than the negotiators intended. Since they didn’t get their global warming treaty (ratified by the U.S.), I worry about treaty provisions on emissions and anthropogenic (human-caused) inputs into the ocean that cause pollution. They could turn this into a global warming issue. Could they bring a case against us because we have pipes that put out sewage or air pollution that finds its way into the ocean?

    But there is also a military component to the treaty.

    In this connection, Borgese believed that LOST prohibits the ability of nuclear submarines to rove freely through the world’s oceans and that the measure could be used to “eliminate the nuclear denizens of the deep and to protect the oceans as our common global heritage.”

    In an article co-authored with an international lawyer,45 Borgese noted how LOST, or UNCLOS, as supporters call it ( for U.N. Convention on the Law of the Sea) stipulates that the oceans “shall be reserved for peaceful purposes.” (emphasis in original)46 and that “any threat or use of force, inconsistent with the United Nations Charter, is prohibited.”47

    She added, “In 1982, when UNCLOS was opened for signature, it was not certain how this applied to the deployment of nuclear weapons. However, since then, the International Court of Justice, in its historic advisory opinion of 1996, determined that ‘the threat or use of nuclear weapons would generally be contrary to the rules of international law applicable in armed conflict.’ Nuclear weapons deployed on submarines are in a state of readiness to use and are thus a threat of use, according to the definition given by the ICJ, and illegal.”

Gulf Oil Spill: A Crisis Created to Back Door Climate Legislation?

  • April 20, 2010: BP oil rig explosion causes 'volcano of oil' to erupt into the Gulf of Mexico.

  • June 7, 2010: According to a federal document, a nearby drilling rig, the Ocean Saratoga, has been leaking since at least April 30 (this story is not covered by mainstream news sources).

  • July 15, 2010: After 85 days, after 206 million gallons of crude oil gushed into the Gulf, and after dumping two million gallons of the highly-toxic dispersant Corexit into the Gulf, BP places a temporary cap on the well.

  • July 16, 2010: Two oil pipelines near China's Dalian's Xingang Harbor expode, igniting a roaring inferno shooting flames 60 feet into the air and spilling an estimated 11,000 barrels of oil into the Yellow Sea.

  • July 26, 2010: Pipeline spills more than one million gallons of oil into Michigan's Kalamazoo River before leak is stopped.

  • July 28, 2010: Barge hits wellhead of an abandoned well in southeastern Louisiana, spewing a mixture of oil, natural gas, and water into Barataria Bay.

  • July 30, 2010: In response to the oil spill in the Gulf, House passes scaled-back version of the CLEAR Act, aimed at reforming offshore drilling (but with the possibility of adding caps on carbon emissions back into the bill during "conference" talks between the House and Senate).

  • August 4, 2010: BP claims victory in plugging blown-out oil well in Gulf.

  • September 2, 2010: A fire breaks out on another oil rig platform in the Gulf.

  • September 3, 2010: New blowout preventer is placed on the blown-out Deepwater Horizon well.

  • September 19, 2010: Blown-out BP oil well declared dead after five months.
The Deepwater Horizon had a general alarm to warn of dangerous gas leaks on the rig and automated emergency shutdown systems to keep gas out of the engine room and to prevent it from igniting on working electronics. But rig leaders had decided to bypass those key safety functions before the disastrous explosions April 20, according to staggering testimony from the rig's chief electronics technician. The technician, Mike Williams, an employee of rig owner Transocean, said he didn't like the practice of "inhibiting" critical warning and safety systems. But higher-ups insisted on it for such reasons as not wanting to be awakened in the middle of the night. - The Times-Picayune, Deepwater Horizon Safety Alerts were Bypassed to Avoid False Alarms, Witness Says, July 23, 2010

Halliburton was forced to admit in testimony at a congressional hearing last month that it carried out a cementing operation 20 hours before the Gulf of Mexico rig went up in flames. The lawsuits claim that four Halliburton workers stationed on the rig improperly capped the well. Oil services contractor Halliburton Inc. says it safely finished a cementing operation 20 hours before a Gulf of Mexico rig went up inflames, killing 11 men and ultimately causing a massive oil spill. In testimony prepared for a congressional hearing, Halliburton says it completed work on the well according to accepted industry practice and federal regulators. Halliburton executive Tim Probert says a pressure test was conducted after the work was finished, and the well owner decided to continue. The cause of the April 20 explosion is under investigation, but lawsuits filed after the disaster claim it was caused when Halliburton workers improperly capped the well -- a process known as cementing. Halliburton denies wrongdoing. - The Associated Press, Halliburton Says It Finished Cementing Operation 20 Hours Before Rig Explosion, May 10, 2010

In the House of Representatives, Democrats are preparing to vote on a tough bill (CLEAR Act) Friday that would clamp down on offshore oil and gas drillers. In addition to eliminating the oil spill liability cap, the bill would impose tough new safety rules and ban BP from getting new offshore oil exploration leases for up to seven years for its role in the Gulf oil spill. Any differences between the House and Senate bills would have to be reconciled, which could prove difficult with the looming August recess and November elections. Some Republicans fear that Democrats could use a possible post-election session to ram an energy and climate control bill through Congress. - Reuters, Senate Unveils Scaled-back Version of Climate Bill, Taking Advantage of the 'Crisis in the Gulf' by Focusing on Offshore Drilling Rather Than Carbon Emissions, July 27, 2010

Senate Democrats unveiled a bill on Tuesday that omits setting caps on carbon emissions -- the key element of a more comprehensive energy and climate bill that failed to gain sufficient support in the Senate. Obama said it was "an important step in the right direction" but it was not enough: "I want to emphasize it's only the first step and I intend to keep pushing for broader reform, including climate legislation." Obama, who spoke before details of the Senate proposal were disclosed, did not set out a timetable for a future climate push and it is very unlikely that any legislation on the subject will be passed this year. If likely Republican gains in November elections change the balance of power in Congress, climate change legislation would face an even more uncertain future. With that in mind, the White House indicated on Tuesday that climate provisions could be added back into a bill once negotiators from the Senate and the House of Representatives hammer out differences between their respective versions during "conference" talks. The House bill, passed last year, includes climate provisions to cut greenhouse gas emissions. - Reuters, Obama Says will Keep Pushing for Climate Bill, July 27, 2010

The House approved a bill (CLEAR Act) Friday to boost safety standards for offshore drilling, remove a federal cap on economic liability for oil spills, and impose new fees on oil and gas production. Democratic leaders hailed the bill as a comprehensive response to the Gulf of Mexico oil spill and said it would increase drilling safety and crack down on oil companies such as BP. The legislation, which passed 209-193, has yet to be taken up in the Senate, where partisan disagreements will likely delay final consideration of a joint House-Senate bill until after the August congressional recess. - Associated Press, House Approves Bill on Drilling, Oil Spills (CLEAR Act), July 30, 2010

By the time the full Congress completes action on this offshore drilling bill (CLEAR Act) -- and it is uncertain that it will -- it could be November or later. A similar offshore drilling bill is pending in the Senate, without the House's new provision to end the drilling moratorium. But it was unlikely that measure would pass before that chamber begins its summer recess on August 6... The Senate energy bill has an added component: new incentives to encourage more natural gas-powered trucks and electric vehicles to clean up the environment. It also provides $5 billion to help improve home energy efficiency. But Senate Democrats abandoned attempts to attach climate change provisions that would have set mandatory limits on some companies' carbon dioxide emissions. - Reuters, House approves oil spill reform bill, July 30, 2010


Democrats Start to Play Hardball on Climate by Lumping Energy with Oil, Dubbed the 'Spill Bill'

The Altlantic
June 25, 2010

Thanks to BP's oil spill, significant climate-change legislation now has a real shot at passing, though not because it will gain votes for the Senate's struggling energy-reform bills. Democrats have another tactic in mind.

Senate Majority Leader Harry Reid's latest energy strategy is to fold a comprehensive climate bill in with bipartisan legislation reforming the oil industry. The "spill bill," a response to the BP oil spill that would impose new safety and environmental rules and reform regulation of offshore oil exploration, is fast-tracked for approval in the Energy and Natural Resources Committee next week. Both Democrats and Republicans have rallied behind the need for refined regulation to ensure that a disaster like the Gulf spill does not happen again. Democrats are hoping that by sneaking energy provisions into the bill, Republicans won't be able to vote against it without looking like they're siding with Big Oil.

Daniel J. Weiss, Senior Fellow and Director of Climate Strategy at the Center for American Progress Action Fund, lays out the dilemma Democrats are hoping to place in Republicans' laps:

People have never been enamored with big oil companies, and now they're even angrier at them. The upcoming debate will pose a choice for senators to either vote with Big Oil and block reform or vote with the American people to make our rigs safer, reduce oil use, and reduce oil pollution.

Democrats took a similar strategy with financial reform, using the economic collapse to pressure Republicans into voting for more Wall Street regulation. Next week's vote will determine the success of this strategy once and for all, but Democrats are confident that the bill will enjoy bipartisan support. With climate, however, they'd risk torpedoing vital reforms to the oil industry if the strategy did not work.

They'd also risk compromising key energy provisions, not just because of the dual-bill strategy but because of the accelerated timeline. Democrats have not yet decided which climate legislation they want to pursue. At caucus meetings yesterday and last week, they debated the merits of three different bills: John Kerry and Joe Lieberman's cap-and-trade version, Maria Cantwell and Susan Collins' cap-and-dividend one (CLEAR Act), and Jeff Bingaman's energy-only bill.

Emerging from yesterday's closed-door meeting, Democrats were bizarrely effusive about the proceedings. According to The Hill, Lieberman called the meeting "absolutely thrilling," Reid termed it "very, very powerful" -- "inspirational, quite frankly," and Kerry said it was "without doubt one of the most motivating, energized, and even inspirational caucuses that I've been part of since I've been here in the Senate in 26 years." Asked about specifics, however, Kerry was mum.

Climatewire reported that Chuck Schumer suggested assembling a small group of Democrats to draft compromise legislation and rally the party around it. A similar method was used to pass the health care bill, which, though it did not get any Republican votes, did eventually achieve relatively unified Democratic backing. This kind of party discipline would be vital to passing a joint oil/energy bill and would likely require similar strong-handed maneuvering to achieve. Democrats have been far from united on the climate front, with some refusing to vote for a bill that does not price carbon and others refusing to vote for one that does. Coal and oil state Dems are in a particularly tough spot and will likely require extensive provisions for clean coal technology and nuclear energy as well as a compromise on offshore drilling.

Yesterday's caucus meeting did signal a shift in tone, however, and attendees were glowing about a renewed sense of unity and purpose. The decision to lump energy in with the oil bill is a change of strategy, one that shows Democrats are ready to play hardball. If Senate leaders and the White House back this effort with the force they (eventually) put behind health care, it could have its first realistic shot in a long time at passage this year.

August 6, 2010

Climate Bills in Congress

House Approves Scaled-back Version of Climate Bill (CLEAR Act) Which Mainstream Media is Calling 'Oil Spill Reform'

Reuters
July 30, 2010

The House of Representatives on Friday approved the toughest reforms ever to offshore energy drilling practices, as Democrats narrowly pushed through an election-year response to BP's massive oil spill in the Gulf of Mexico.

Passing the bill as the House leaves for its six-week recess gives lawmakers the opportunity to return home boasting they reined in Big Oil and held BP responsible for the worst offshore oil disaster in U.S. history.

The vote was 209-193 on the bill supported by President Barack Obama.

But first, Gulf Coast Democrats won an amendment ending the federal moratorium on deepwater drilling for oil companies that met new safety requirements.

The Obama administration's moratorium would end in November. By the time the full Congress completes action on this offshore drilling bill -- and it is uncertain that it will -- it could be November or later.

A similar offshore drilling bill is pending in the Senate, without the House's new provision to end the drilling moratorium. But it was unlikely that measure would pass before that chamber begins its summer recess on August 6.

House Republicans warned the bill would slash U.S. oil and gas production in the Gulf of Mexico, a major supplier of domestic energy, and cut high-paying drilling jobs.
"The Obama moratorium on deepwater drilling has already costs thousands of jobs and this bill will eliminate even more American energy jobs, making it harder and more expensive to produce both energy on and offshore," said Republican Representative Pete Sessions.

"It will drive American companies out of the Gulf," said Republican Representative Kevin Brady. "This is a choice between American energy workers and foreign oil."
Democrats said the bill would make offshore drilling safer for workers, while also protecting the environment and Gulf Coast business from future oil spills like the one caused by BP that damaged wetlands and hurt the region's fishing and tourism industries.
"This legislation is about safety, about establishing new safety standards, safety for the workers on the rigs," said House Speaker Nancy Pelosi.

"If you want to apologize for Big Oil, go right ahead, but the American people are not on your side on this one," Democratic Representative Jim McGovern told his Republican colleagues during a long day of debate.
Before passing the bill, the House also approved an amendment to help smaller oil companies compete for Gulf of Mexico drilling projects under the proposed reforms. The amendment would let them pool their resources in demonstrating they have the financial resources to deal with potential oil spills.

The House vote on the bill was close, as several Democrats representing districts with strong oil industry interests joined Republicans in opposition.

Representative Gene Green, from the oil industry-dominated city of Houston, was one of those Democrats.
"There are a lot of things in there that have nothing to do with safety" of offshore drilling operations, Green told reporters.
A sticking point in the Senate is opposition from Republicans and some moderate Democrats to removing all liability limits oil companies would face for economic damages stemming from the BP disaster and any future spills.

Current law requires companies to only cover up to $75 million for damages to local economies. The BP spill could end up costing billions of dollars in lost tourism, fishing and other Gulf Coast revenues.

BP has said it would pay for all costs related to the spill, but many lawmakers worry that the company could put victims through years of litigation.

The Senate energy bill has an added component: new incentives to encourage more natural gas-powered trucks and electric vehicles to clean up the environment. It also provides $5 billion to help improve home energy efficiency.

But Senate Democrats abandoned attempts to attach climate change provisions that would have set mandatory limits on some companies' carbon dioxide emissions.

Senate leaders plan to hold a test vote next Wednesday to gauge support for the bill, according to a Democratic aide. But Republicans, and possibly some moderate Democrats, might block a full debate, forcing senators to take it up in September.

The House also approved a separate bill on Friday to give whistle-blower protection to workers who report violations in offshore drilling rules.

House Approves Bill on Drilling, Oil Spills (CLEAR Act)

The Associated Press
July 30, 2010

The House approved a bill Friday to boost safety standards for offshore drilling, remove a federal cap on economic liability for oil spills, and impose new fees on oil and gas production.

Democratic leaders hailed the bill as a comprehensive response to the Gulf of Mexico oil spill and said it would increase drilling safety and crack down on oil companies such as BP. Companies with significant workplace safety or environmental violations over the preceding seven years would be banned from new offshore drilling permits.

Republicans and some-oil state Democrats opposed the measure, calling it a federal power grab that would raise energy prices and kill thousands of American jobs because of the new fees and liability provision.

Rep. Nick Rahall, D-W.Va., the bill's main sponsor, said the legislation would be a tribute to the 11 oil rig workers who were killed when the BP well exploded in April by creating strong new safety standards for offshore drilling, ending the revolving door between government regulators and industry and holding BP and other oil companies accountable for accidents.
"While we may not know the exact cause of the incident, we clearly know what contributed to it. A culture of cozy relationships that had regulators interviewing for jobs on the same rigs they were supposed to be inspecting," said Rahall, who is chairman of the House Natural Resources Committee.
The legislation, which passed 209-193, has yet to be taken up in the Senate, where partisan disagreements will likely delay final consideration of a joint House-Senate bill until after the August congressional recess.

The House bill includes a provision sponsored by Rep. Charlie Melancon, D-La., that would modify a six-month moratorium on deepwater drilling, so that some drilling permits could be approved on a rig-by-rig basis if the Interior Department determines a rig meets new safety requirements. The drilling moratorium imposed by Interior Secretary Ken Salazar would remain in effect, and Salazar would retain power over whether to approve a permit.

The bill also would remove the current $75 million cap on economic damages to be paid by oil companies after major spills and increases to $300 million the financial responsibility offshore operators must demonstrate in most cases. And it would create new "conservation" fees on oil and natural gas extracted from land or water controlled by the federal government.

Those provisions prompted sharp criticism from Republicans.
"In typical Democrat fashion, this bill overtaxes, over-regulates, and costs American jobs," said Rep. John Mica, R-Fla.
Rep. Doc Hastings of Washington state, the top Republican on the House Natural Resources Committee, said removing the liability cap could devastate small and medium-sized drillers.

Hastings called the new fees on oil and gas production a "$22 billion energy tax" that would cost jobs and raise energy prices. The Congressional Budget Office estimates that the $2 per barrel fee on oil and a similar fee on natural gas could bring in $22.5 billion over the next decade ...

Carbon Limits and Energy for America's Renewal Act (CLEAR Act)

From SourceWatch

The Carbon Limits and Energy for America's Renewal Act is a Senate climate bill S. 2877 introduced by Sen. Maria Cantwell (D-WA) and Sen. Susan Collins (R-ME) on December 11, 2009, which embodies a “cap-and-refund” approach to addressing climate change. The Act would create a nationwide limit on greenhouse gases by capping total emissions and requiring major polluters to buy “allowances” for each ton of greenhouse pollution produced: 75% of the revenue generated from the allowances would go to American households, and the remaining 25% of revenue is reserved for reducing greenhouse gas emissions, investments in renewable energy technology, climate adaptation, and other purposes.

According to Sen. Cantwell: "A growing number of researchers and consumer groups have been examining the relative benefits of a greenhouse gas reduction policy that focuses on safeguarding and empowering consumers. A properly structured climate policy will put cash in consumers’ pockets and provide the necessary capital to make America’s homes and communities more efficient and less polluting."

In promoting a cap and dividend policy without carbon offsets, stronger carbon limits that do not interfere with the Clean Air Act, and increased funding for renewables over fossil fuels, the bill differs from the financial market carbon trading plan promoted by the Clean Energy Jobs and American Power Act, introduced in May 2010 by Senators John Kerry and Joseph Lieberman.

H.R. 3534 incorporates H.R. 5629, the Oil Spill Accountability and Environmental Protection Act of 2010, which the Transportation & Infrastructure Committee reported on a bipartisan basis on July 1, 2010. It also incorporates key elements of H.R. 5626, the Blowout Prevention Act of 2010 reported by the Committee on Energy and Commerce by a bipartisan vote of 48 to 0, with one abstention, on July 15, 2010. [source: marinelog.com]

What Every Member Should Know about the CLEAR Act (H.R. 3534)

“Cutting Loose Energy and American Resources” Act: A Job-Killing Energy Tax

GOP.gov
July 31, 2010

On Friday, July 30, 2010, the House is expected to consider H.R. 3534, the CLEAR Act. This legislation represents the latest installment in the Democrats’ campaign to increase the price of American energy and kill good-paying U.S. jobs in the energy sector and related industries that rely on it. Members may be concerned that the CLEAR Act will increase the cost of energy in the U.S., increase dependence on unstable sources of foreign oil, and kill thousands of jobs at home.

De Facto Drilling Moratorium: The bill would impose a de facto moratorium on offshore oil and gas production by increasing taxes and regulation, allowing the approval process for exploration plans to be extended indefinitely, adding layers of bureaucracy, and imposing unlimited liability caps. The Obama moratorium has already cost tens of thousands of jobs and now Democrats in Congress want to exacerbate the problem, especially on the Gulf coast.

New Tax on American Energy: The CLEAR Act includes a new tax on oil and natural gas produced on all existing and new federal onshore and offshore leases. The tax would be $2 per barrel of oil and 20 cents per million British thermal units of natural gas. This cost would eventually be passed on to American consumers of energy—small business, families, and farmers. It is estimated that this tax will total $22 billion in ten years, and the taxes will eventually climb to $3 billion per year. Of course, this new tax only applies to American energy, giving a distinct advantage to foreign oil and gas and jeopardizing American energy jobs.

Unlimited Liability Kills Jobs and Local Revenue: The CLEAR Act includes unlimited liability caps for offshore energy producers. This would effectively eliminate smaller and independent producers from operating if they cannot obtain insurance policies to cover their operations. According to a recent study, these producers account for more than half of offshore jobs—meaning a loss of 300,000 jobs and $147 billion in federal, state and local revenues. Members may be concerned that a liability increase is premature because under current law if a responsible party is found to be grossly negligent, engaged in willful misconduct or to have violated a federal safety, construction or operating regulation, it is responsible for all costs.

Protectionist “Build America” Provisions: The CLEAR Act includes a make-work provision for labor unions requiring all rigs to be U.S.-built, owned and operated. Currently, rigs are already built to U.S. standards, staffed by U.S. crews and inspected by U.S. governmental agencies. Drilling rigs are extremely complex platforms and the U.S. lacks the capacity to build one from scratch in our globalized economy. This provision would have the effect of driving rigs out of the U.S., thus raising energy costs for Americans. Estimates suggest that this provision would shut down 25 percent of today’s oil and gas production and make new U.S. offshore projects uneconomic by raising costs 30 to 100 percent.

Political Cover for the President: In the version of the CLEAR Act to be considered on the House floor, Democrat leadership has removed a provision authored by Rep. Bill Cassidy (R-LA) to establish a bipartisan, independent National Commission on Outer Continental Shelf Oil Spill Prevention. This commission would be comprised of technical experts to study the events leading up to the Deepwater Horizon disaster. Democrats are thus protecting the president’s own hand-picked, expert-deficient Commission. As Natural Resources Committee Ranking Member Doc Hastings (R-WA) noted, “There is widespread agreement that no member of the President’s Commission possesses technical expertise in oil drilling, and several are on the record in opposition to offshore drilling and support a moratorium that will cost thousands of jobs.”

Seizes States’ Authority: The bill would enable the federal government to encroach on states’ offshore leasing programs by taking over permitting and dictating the type of technology to be used on state wells, seemingly even in the event that technology is improved in the future. This would reduce incentives for advances in energy technology and possibly even the development of safer designs and procedures moving forward.

The oil spill is an ongoing tragedy for the Gulf region, its economy, the environment, and the families of those who lost their lives. The immediate focus now needs to be permanently stopping the leak, cleaning up the Gulf, protecting the livelihoods affected, and holding BP accountable. Congress should wait until the facts are known regarding this disaster before making a headlong anti-energy rush full of adverse consequences. Republicans support responsible, commonsense reforms to make American energy production safer, but the CLEAR Act CLEARLY falls well short of that standard on many counts.

Waxman-Markey Climate Bill

From SourceWatch

The Waxman-Markey Climate bill is the common name for the American Clean Energy and Security Act of 2009 (H.R. 2454), introduced on May 15, 2009 and sponsored by Henry Waxman (Democrat of California) and Ed Markey (Democrat of Massachusetts). The wide-ranging energy and climate bill aims to create clean energy jobs, save consumer energy costs, increase America’s energy independence, and cut global warming pollution. On June 26, 2009, the U.S. House of Representatives voted 219-212 to pass the bill. Eight Republicans voted for the legislation, and 44 Democrats voted against it.

Senate Majority Leader Harry Reid said the Senate version of the bill, Clean Energy Jobs and American Power Act (S. 1733), introduced on September 30, 2009, would be considered in the Fall.

The legislation has four titles: Clean Energy, Energy Efficiency, Reducing Global Warming Pollution, and Transitioning to a Clean Energy Economy.

Major elements of the bill include:

  • a requirement for 20 percent of electricity to come from renewable fuels by 2025;
  • Carbon Capture and Storage incentives;
  • smart grid and electrical car provisions;
  • higher energy efficiency standards for buildings, lighting, and appliances;
  • a Cap and Trade program;
  • reduction of global warming gases by 83 percent by 2050;
  • programs to compensate energy intensive industries for costs incurred under the bill,
  • and green job creation.
Another Senate climate bill, the Carbon Limits and Energy for America's Renewal Act (CLEAR Act) S. 2877 by Sen. Maria Cantwell (D-WA) and Sen. Susan Collins (R-ME), was introduced on December 11, 2009. In promoting a cap and dividend policy and stronger carbon limits, the CLEAR Act differs from the financial market carbon trading plan promoted by Waxman-Markey and the Clean Energy Jobs and American Power Act. [A scaled-back version of this bill was passed by the House on July 27, 2010, in response to the BP Gulf oil spill.]

At a Glance: Waxman-Markey and Kerry-Boxer


House Bill (Waxman-Markey)
American Clean Energy and Security Act
Proposed Senate Bill (Kerry-Boxer)
Clean Energy Jobs and American Power Act
2020 Emissions Target Cuts emissions by 17% (using a 2005 baseline) Cuts emissions by 20% (using a 2005 baseline)
2030 Emissions Target 42% 42%
2050 Emissions Target 83% 83%
EPA’s authority to regulate greenhouse gas emissions

EPA authority superceded
EPA retained
Carbon offsets Capped at 2 billion tons per year
Capped at 2 billion tons per year
International carbon offsets

Capped at 50% of total offsets allowed (except when there are insufficient domestic offsets in which case cap rises to 75% of total) Capped at 25% of total offsets, with increased international oversight.
Carbon market: Oversight Carbon markets overseen by the Federal Energy Regulatory Commission and the Commodity Futures Trading Commission (CFTC) Carbon markets overseen by CFTC only; regulators have more oversight
Carbon market: Cost stabilization Sets a $10/ton carbon permit price floor
Sets a $11/ton carbon permit price floor
Carbon market: Cost containment Uses a “strategic reserve pool” to stabilize prices when they exceed 60% of the historical price.
Uses a “strategic reserve pool” to stabilize prices when they reach a threshold price set at $28/ton in 2012 and increasing each year thereafter.
Trade protection Employs border tariffs to compensate for international carbon inequities
No mechanism yet to deal with non-carbon constrained economies
Treatment of indirect land use emissions in assessing carbon content of biofuels Indirect land use emissions excluded from analysis (see my post on this)
No language yet
Natural gas and nuclear energy
Gives nuclear access to loan guarantees and clean energy investment funds as a clean energy technology
Includes provisions to promote nuclear energy and natural gas
Transportation Allows states to use carbon funds to support green transportation
Requires states to use carbon funds to support green transportation
Methane emissions
Regulates methane emissions from certain sources
Methane reductions voluntary and can be used as offsets until 2020 when regulations kick in

December 14, 2009

Transferring Wealth to the Ruling Elite in Name of the Environment

The World Bank is not an organization devoted to capitalism, or to the free market, but to state-run corporate capitalism. Established and managed by a multitude of national governments, the World Bank promotes managed trade by which politically connected individuals and corporations enrich themselves at the expense of the poor and middle class... Western governments tax their citizens to fund the World Bank, lend this money to corrupt Third World dictators who abscond with the funds, and then demand repayment which is extracted through taxation from poor Third World citizens, rather than from the government officials responsible for the embezzlement. It is in essence a global transfer of wealth from the poor to the rich. Taxpayers around the world are forced to subsidize the lavish lifestyles of Third World dictators and highly-paid World Bank bureaucrats who don't even pay income tax. - Ron Paul, Opening Statement, Committee on Financial Services, World Bank Hearing, May 22, 2007

COP15: A Haitian delegation during second-day session at the Bella center in Copenhagen
A Haitian delegation rests before the second-day session begins in Copenhagen.
Photograph: Attila Kisbenedek/AFP/Getty Images

The global warming/climate change mythology is the greatest hoax the private International Monetary/Banking Cartel has ever tried to pull off: With the passage of the Copenhagen Climate Treaty provisions, world governance and unlimited taxes will fall into the hands of private, monopoly capitalists while many socialists, communists, and environmentalists ignorantly support this international takeover, falsely thinking that the treaty’s many laws, regulations, and directives are socialistic, and will thus help improve our badly deteriorating environment... The “Redemption for sale” provisions of all carbon emission’s regulations, directives, and laws will channel hundreds of billions – if not trillions – of American dollars, European Euros, and scores of other currencies to our “friends” in the International Banking Cartel, by way of their so-called World Bank, with little to none being spent on the crying needs of our dying environment. - J. Speer-Williams, Globalist Carbon Tax Scheme: Redemption for Sale, Infowars.com, December 12, 2009

1991 UN Policy Paper Describes Exact Purpose and Trajectory of Current Copenhagen Treaty

By Jurriaan Maessen, Infowars
December 10, 2009

A 1991 policy paper prepared for the United Nations Conference on Environment and Development (UNCED) by self-described ‘ecosocioeconomist’ professor Ignacy Sachs outlines a strategy for the transfer of wealth in name of the environment to be implemented in the course of 35 to 40 years. As it turns out, it is a visionary paper describing phase by phase the road to world dictatorship.

As the professor states in the paper:

“To be meaningful, the strategies should cover the time-span of several decades. Thirty-five to forty years seems a good compromise between the need to give enough time to the postulated transformations and the uncertainties brought about by the lengthening of the time-span.”
In his paper “The Next 40 Years: Transition Strategies to the Virtuous Green Path: North/South/East/Global,” Sachs accurately describes not only the intended time-span to bring about a global society, but also what steps should be taken to ensure “population stabilization:”
“In order to stabilize the populations of the South by means other than wars or epidemics, mere campaigning for birth control and distributing of contraceptives has proved fairly inefficient.”
In the first part of the (in retrospect) bizarrely accurate description of the years to come, Sachs points out redistribution of wealth is the only viable path towards population stabilization and -- as he calls it -- a “virtuous green world.” The professor:
“The way out from the double bind of poverty and environmental disruption calls for a fairly long period of more economic growth to sustain the transition strategies towards the virtuous green path of what has been called in Stockholm eco development and has since changed its name in Anglo-Saxon countries to sustainable development.”

“(…) a fair degree of agreement seems to exist, therefore, about the ideal development path to be followed so long as we do not manage to stabilize the world population and, at the same time, sharply reduce the inequalities prevailing today.”

“The bolder the steps taken in the near future,” Sachs asserts, “the shorter will be the time span that separates us from a steady state. Radical solutions must address to the roots of the problem and not to its symptoms. Theoretically, the transition could be made shorter by measures of redistribution of assets and income.”

Sachs points to the political difficulties of such proposals being implemented (because free humanity tends to distrust any national government, let alone transnational government, to redistribute its well-earned wealth). He therefore proposes these measures to be implemented gradually, following a meticulously planned strategy:
“The pragmatic prospect is one of transition extending itself over several decades.”
In the second sub-chapter, “The Five Dimensions of Ecodevelopment,” professor Sachs sums up the main dimensions of this carefully outlined move to make Agenda 21 a very real future prospect.
Agenda 21 - This global contract binds governments around the world to the UN plan for changing the ways we live, eat, learn and communicate--all under the noble banner of saving the Earth. Its regulations would severely limit water, electricity and transportation--even deny human access to our most treasured wilderness areas. If implemented, it would manage and monitor all lands and people. No one would be free from the watchful eye of the new global tracking and information system. - Berit Kjos, "Local Agenda 21 - The U.N. Plan for Your Community"

Sustainable Development - The concept of Sustainable Development basically says that there are too many people on planet Earth and that the population of the world must be reduced in order to have enough resources for future generations. [Under the New World Order plan,] the UN should be the global custodian of the Earth and all of its resources. This means that we will be measured by how much we produce and how much we consume as found in the "family dependency ratio." Every person will be valued according to their usefulness. In addition, the UN will control the Earth's resources--energy, water, food and so on. The concept of sustainable development can be found in the Communisto Manifesto and the 1977 USSR Constitution. -
Joan M. Veon, The Women's International Media Group, Inc.

The first dimension he touches upon is “Social Sustainability:”

“The aim is to build a civilization of being within greater equity in asset and income distribution, so as to improve substantially the entitlements of the broad masses of population and to reduce the gap in standards of living between the have and the have nots.”
This of course means, reducing the standards of living in “The North” (U.S., Europe) and upgrading those of the developing nations (“The South and The East”).

This would have to be realized through what Sachs calls “Economic Sustainability:”

“Made possible by a more efficient allocation and management of resources and a steady flow of public and private investment.”
The third dimension described by the professor is “Ecological Sustainability:”
Which, among other things, limits “the consumption of fossil fuels and other easily depletable or environmentally harmful products, substituting them by renewable and/or plentiful- and environmentally-friendly resources, reducing the volume of pollutants by means of energy and resource conservation and recycling and, last but not least, promoting self-constraint in material consumption on part of the rich countries and of the privileged social strata all over the world.”
In order to make this happen, Sachs stresses the need of “defining the rules for adequate environmental protection, designing the institutional machinery and choosing the mix of economic, legal and administrative instruments necessary for the implementation of environmental policies.”

The fourth dimension: “Spatial Sustainability:

“Directed at achieving a more balanced rural-urban configuration and a better territorial distribution of human settlements and economic activities (…)”
The fifth and last dimension described in the UN policy paper is “Cultural Sustainability:”
“Looking for the endogenous roots of the modernization processes, seeking change within cultural continuity, translating the normative concept of ecodevelopment into a plurality of local, ecosystem-specific, culture-specific and site-specific solutions.”
But to realize such a dramatic new direction for the world, Sachs once again stresses the importance of incremental implementation. A matter of boiling the frog slowly as opposed to throwing the poor animal into a boiling-hot cooking pan:
“Even if we know where we want to get, the operational question is how do we proceed to put humankind on the virtuous path of genuine development, socially responsible and in harmony with nature. It is submitted that UNCED 92 should give considerable attention to the formulation of transition strategies that could become the central piece of the Agenda 21.”
This is the word -- Agenda 21: the UN strategy for redistributing the wealth accumulated by the “North” in order to create a completely “balanced” world society -- under auspices of the United Nations of course and the private central banks controlling it. This can only come about by destroying the middle-class. A sudden redistribution and industrialization would not do -- for the middle-class would undoubtedly rise in defiance against it. Therefore, Sachs argues for an incremental and carefully planned dissolution of the middle-class, phase by phase:
To be meaningful, the strategies should cover the time-span of several decades. Thirty-five to forty years seems a good compromise between the need to give enough time to the postulated transformations and the uncertainties brought about by the lengthening of the time-span. The retooling of industries, even in periods of rapid growth, requires 10 to 20 years. The restructuration and the expansion of the infrastructures requires several decades, and this is a crucially important sector from the point of view of environment.”
Then Sachs plunges into his most shocking statement:
“However, the single most important reason to consider the transition strategies over a minimum of 35 to 40 years stems from the non-linearity of these strategies; they should be devised as a succession of changing priorities over time. A good illustration is provided by the population transition. In order to stabilize the populations of the South by means other than wars or epidemics, mere campaigning for birth control and distributing contraceptives has proved fairly inefficient.”
Sachs argues that “an accelerated programme of social and economic development of the rural areas should be the outmost priority in the first phase of a realistic population stabilization scheme.”

Who or what is to coordinate all this, according to Sachs, and how exactly is the UN to take control?

“The solutions,” says Sachs, “can vary in terms of their boldness and take the form of global, multilateral or bilateral arrangements.” These arrangements should, as far as Sachs is concerned, ensure “at least partially the automacity of financial transfers by some form of fiscal mechanisms, be it a small income tax or an array of indirect taxes on goods and services whose production and consumption has significant environmental impacts.”
Over time, gradually, these taxes should increase:
“Starting the operation with a one per 10,000 tax and increasing it so as to reach one per 1,000 in 10 to 20 years seems a fairly realistic proposal, the more so that the scheme creates an interesting market for the private enterprises involved in R and D.”
Reading all this, the question as to what entity should take charge is not difficult to answer. Sachs:
“In order to generate maximum synergies between the national strategies and global action, the United Nations should create a forum for the periodical discussion and evaluation of these strategies and a research, monitoring and flexible planning facility to put them in a global perspective (…) The forum should have a fair representation of all the main actors involved: governments, parliaments, citizen movements, and the business world. Given its importance, it should be lifted from specialized agencies to a central place in the UN system.”
The “fair representation” Sachs is talking about is of course only a pretext to get everybody on board. As the recently surfaced “Danish Text” clearly illustrates, the IMF and World Bank will always have final say in the construction of any international system.

“The governments of Europe, the United States, and Japan are unlikely to negotiate a social-democratic pattern of globalization – unless their hands are forced by a popular movement or a catastrophe, such as another Great Depression or ecological disaster.- Richard Sandbrook, "Closing the Circle: Democratization and Development in Africa," Zed Books limited, London, 2000.

Soros Wants Rich Nations to Finance IMF Scheme
Do Rich Nations Owe Poor Ones a Climate Debt?
AP and other news agencies' Facebook ClimatePool page
UN climate treaty secretariat
Denmark's Copenhagen climate conference site

December 7, 2009

You Want to Talk About a Carbon Footprint?

The global warming/climate change mythology is the greatest hoax the private International Monetary/Banking Cartel has ever tried to pull off: With the passage of the Copenhagen Climate Treaty provisions, world governance and unlimited taxes will fall into the hands of private, monopoly capitalists while many socialists, communists, and environmentalists ignorantly support this international takeover, falsely thinking that the treaty’s many laws, regulations, and directives are socialistic, and will thus help improve our badly deteriorating environment... The “Redemption for sale” provisions of all carbon emission’s regulations, directives and laws will channel hundreds of billions – if not trillions – of American dollars, European Euros, and scores of other currencies to our “friends” in the International Banking Cartel, by way of their so-called World Bank, with little to none being spent on the crying needs of our dying environment. - J. Speer-Williams, Globalist Carbon Tax Scheme: Redemption for Sale, Infowars.com, December 12, 2009

Carbon Capitalists Warming to Climate Market Using Derivatives

Estimates of the potential size of the U.S. cap-and-trade market range from $300 billion to $2 trillion.

By Lisa Kassenaar, Bloomberg
December 4, 2009

Across Uganda, thousands of women warm supper over new, $8 orange-painted stoves. The clay-and- metal pots burn about two-thirds the charcoal of the open-fire cooking typical of East Africa, where forests are being chopped down in the struggle to feed the region’s 125 million people.

Four thousand miles away, at the Charles Hurst Land Rover dealership in southwest London, a Range Rover Vogue sells for 90,000 pounds ($151,000). A blue windshield sticker proclaims that the gasoline-powered truck’s first 45,000 miles (72,421 kilometers) will be carbon neutral.

That’s because Land Rover, official purveyor of 4x4s to Queen Elizabeth II, is helping Ugandans cut their greenhouse gas emissions with those new stoves.

These two worlds came together in the offices of Blythe Masters at JPMorgan Chase & Co.

Masters, 40, oversees the New York bank’s environmental businesses as the firm’s global head of commodities. JPMorgan brokered a deal in 2007 for Land Rover to buy carbon credits from ClimateCare, an Oxford, England-based group that develops energy-efficiency projects around the world. Land Rover, now owned by Mumbai-based Tata Motors Ltd., is using the credits to offset some of the CO2 emissions produced by its vehicles.

For Wall Street, these kinds of voluntary carbon deals are just a dress rehearsal for the day when the U.S. develops a mandatory trading program for greenhouse gas emissions. JPMorgan, Goldman Sachs Group Inc., and Morgan Stanley [a spinoff of JPMorgan] will be watching closely as 192 nations gather in Copenhagen next week to try to forge a new climate-change treaty that would, for the first time, include the U.S. and China.

U.S. Cap and Trade

Those two economies are the biggest emitters of CO2, the most ubiquitous of the gases found to cause global warming. The Kyoto Protocol, whose emissions targets will expire in 2012, spawned a carbon-trading system in Europe that the banks hope will be replicated in the U.S.

The U.S. Senate is debating a clean-energy bill that would introduce cap and trade for U.S. emissions. A similar bill passed the House of Representatives in June. The plan would transform U.S. industry by forcing the biggest companies -- such as utilities, oil and gas drillers and cement makers -- to calculate the amounts of carbon dioxide and other greenhouse gases they emit and then pay for them.

Estimates of the potential size of the U.S. cap-and-trade market range from $300 billion to $2 trillion.

Banks Moving In

Banks intend to become the intermediaries in this fledgling market. Although U.S. carbon legislation may not pass for a year or more, Wall Street has already spent hundreds of millions of dollars hiring lobbyists and making deals with companies that can supply them with “carbon offsets” to sell to clients.

JPMorgan, for instance, purchased ClimateCare in early 2008 for an undisclosed sum. This month, it paid $210 million for Eco-Securities Group Plc, the biggest developer of projects used to generate credits offsetting government-regulated carbon emissions. Financial institutions have also been investing in alternative energy, such as wind and solar power, and lending to clean-technology entrepreneurs.

The banks are preparing to do with carbon what they’ve done before: design and market derivatives contracts that will help client companies hedge their price risk over the long term. They’re also ready to sell carbon-related financial products to outside investors.

Masters says banks must be allowed to lead the way if a mandatory carbon-trading system is going to help save the planet at the lowest possible cost. And derivatives related to carbon must be part of the mix, she says. Derivatives are securities whose value is derived from the value of an underlying commodity -- in this case, CO2 and other greenhouse gases.

‘Heavy Involvement’

“This requires a massive redirection of capital,” Masters says. “You can’t have a successful climate policy without the heavy, heavy involvement of financial institutions.”
As a young London banker in the early 1990s, Masters was part of JPMorgan’s team developing ideas for transferring risk to third parties. She went on to manage credit risk for JPMorgan’s investment bank.

Among the credit derivatives that grew from the bank’s early efforts was the credit-default swap. A CDS is a contract that functions like insurance by protecting debt holders against default. In 2008, after U.S. home prices plunged, the cost of protection against subprime-mortgage bond defaults jumped. Insurer American International Group Inc., which had sold billions in CDSs, was forced into government ownership, roiling markets and helping trigger the worst global recession since the 1930s.

Lawmakers Leery

Now, that story -- and the entire role the banks played in the credit crisis -- has become central to the U.S. carbon debate. Washington lawmakers are leery of handing Wall Street anything new to trade because the bitter taste of the credit debacle lingers. And their focus is on derivatives. Along with CDSs, the most-notorious derivatives are the collateralized-debt obligations they often insured. CDOs are bundles of subprime mortgages and other debt that were sliced into tranches and sold to investors.
“People are going to be cutting up carbon futures, and we’ll be in trouble,” says Maria Cantwell, a Democratic senator from Washington state. “You can’t stay ahead of the next tool they’re going to create.”
Cantwell, 51, proposed in November that U.S. state governments be given the right to ban unregulated financial products.
“The derivatives market has done so much damage to our economy and is nothing more than a very-high-stakes casino -- except that casinos have to abide by regulations,” she wrote in a press release.
Jet Fuel, Wheat

In carbon markets, many of the derivatives would be futures, options and swaps that would allow a company to lock in a price for carbon like it would for any other commodity related to its business, Masters says. Such derivatives are negotiated every day by airlines trying to guarantee future prices for jet fuel and farmers setting a future price for their wheat crop. A large, liquid market in carbon credits would serve to keep their price low, JPMorgan says.
“The reason why this is important is not because it’s going to create a new forum for us to buy and sell; it’s because the scale of what’s being contemplated here is absolutely enormous,” Masters says. “It’s going to affect your kids and my kids. The worst thing would be to introduce legislation that doesn’t achieve the environmental goal; that would be a crime of epic proportions.”
Not Convinced

Michelle Chan, a senior policy analyst in San Francisco for Friends of the Earth, isn’t convinced.
“Should we really create a new $2 trillion market when we haven’t yet finished the job of revamping and testing new financial regulation?” she asks. Chan says that, given their recent history, the banks’ ability to turn climate change into a new commodities market should be curbed.

“What we have just been woken up to in the credit crisis -- to a jarring and shocking degree -- is what happens in the real world,” she says.
Even George Soros, the billionaire hedge fund operator, says money managers would find ways to manipulate cap-and-trade markets.
“The system can be gamed,” Soros, 79, remarked at a London School of Economics seminar in July. “That’s why financial types like me like it -- because there are financial opportunities.”
Masters says U.S. carbon markets should be transparent and regulated by the Commodity Futures Trading Commission. Standardized derivatives contracts -- securities that can be bought and sold by anyone -- should be traded on exchanges or centrally cleared, she says. The British-born Masters, who has an economics degree from Cambridge University, took over JPMorgan’s commodities business in 2007.

Allowances, Offsets

In a U.S. cap-and-trade market, the government would allot tradable pollution permits, called allowances, to emitters of CO2 and other greenhouse gases. The market would also likely include offsets -- credits generated by companies such as Eco-Securities that would have to demonstrate to U.S. agencies running the program that the offsets mitigate carbon pollution.

Point Carbon, an Oslo-based firm that analyzes environmental markets, estimates that by 2020 the U.S. carbon market could surge to more than $300 billion. That’s based on an assumption that the allowances, each representing a ton of carbon dioxide taken out of the atmosphere, would trade for $15. Bart Chilton, a commissioner of the CFTC, which would likely be one of the regulators of the carbon market, says it could grow as large as $2 trillion.

Goldman Building

As they wait for a U.S. cap-and-trade system to be introduced, the big banks are busy building, not trading. Goldman Sachs, for example, has fewer than 10 traders dedicated to carbon around the world.
“Carbon right now is not about sitting in front of a screen and clicking,” says Gerrit Nicholas, Goldman’s head of North American environmental commodities. “It’s all about running around talking to clients about what they can expect, how big it can be and what their risk is.”
Abyd Karmali, who heads global carbon emissions at Bank of America Merrill Lynch in London, says companies, banks and investors are all watching Congress.
“A lot of people are focused on Copenhagen, but what happens in Washington on federal cap and trade is, arguably, more important,” says Karmali, who’s president of the Carbon Markets and Investors Association, an international trade group. “This market is still in its very early stages. U.S. cap and trade would make an order of magnitude of difference.”
‘Ruinous Course’

Although U.S. President Barack Obama and his economic team support cap and trade, Washington politics could defeat it. The House bill passed in June by just seven votes, and senators on both sides of the aisle worry that imposing pollution caps on industry will result in higher energy bills for consumers at a time when U.S. unemployment tops 10 percent. Karl Rove, former president George W. Bush’s deputy chief of staff, wrote in Newsweek magazine in November that cap and trade “would put America on a ruinous course.”

Republican Senator James Inhofe of Oklahoma, who in 2006 called Nobel Prize winner and former Vice President Al Gore “full of crap” on global warming, boycotted committee meetings on the Senate bill in November.

Senate Majority Leader Harry Reid said on Nov. 18 that climate-change legislation may not be discussed until the spring, prompting speculation among others in the Senate that the bill won’t be passed before Congressional elections in 2010. The Obama administration is also driving to overhaul U.S. health care and develop proposals to push down unemployment.

House, Senate Bills

U.S. cap and trade, as currently configured in both the House and Senate bills, would mean the government sets an upper limit on emissions of seven greenhouse gases, including CO2, methane and nitrous oxide, for thousands of power plants, refineries and factories. Over time, the caps would fall, pushing emitters to adopt clean-air technology.

The government would give some pollution allowances to companies free to help them meet their caps during the first years of the program. Emitters who invest in cutting their pollution would have allowances to sell; those that don’t would have to buy.

The allowances -- similar to those that sold in Europe in mid-November for 13.5 euros ($20) -- would be tradable on an exchange or, if Congress allows it, between parties in an over-the-counter market. The credits garnered through offset projects such as the stoves in Uganda are distinct from allowances in that they may be generated on the other side of the world.

Accounting for Carbon

U.S. companies would account for carbon in long-term strategic plans, bankers say. For instance, utilities such as American Electric Power Co., which produces power from coal, would hedge the price of carbon over periods as long as a decade or more. Columbus, Ohio-based AEP is the biggest U.S. greenhouse gas emitter in the Standard & Poor’s 500, according to the London-based Carbon Disclosure Project, which collects such data. Companies like AEP would retain financial institutions to come up with customized derivatives contracts to help them manage their risk.

Derivatives contracts designed for a particular company or transaction, known as over-the-counter derivatives, are a hot-button issue in the larger debate over how the U.S. banking system should be regulated. Most CDSs and CDOs are OTC derivatives. They are created and traded privately -- not on any exchange -- and can be illiquid and opaque, says Andy Stevenson, a financial analyst for the Natural Resources Defense Council, an environmental group that supports the Senate legislation. The House cap-and-trade bill bans OTC derivatives, requiring that all carbon trading be done on exchanges.

OTC Derivatives

The bankers say such a ban would be a mistake. OTC derivatives are a $600 trillion market, much of which consists of interest-rate swaps designed to hedge risks for individual companies.
“It’s a concern of ours if they limit the market,” says Pat Hemlepp, a spokesman for AEP. “It reduces the options when it comes to cap and trade, and we have told people that on the Hill. We do feel it’s best to have banks and other parties able to participate.”
The banks and companies may get their way on carbon derivatives in separate legislation now being worked out in Congress. In October, the House Financial Services Committee, headed by Representative Barney Frank, a Democrat from Massachusetts, approved a bill that would require collateral for all derivatives trading between financial institutions. And broker-dealers such as JPMorgan and Goldman Sachs would be forced to clear most derivatives contracts on regulated exchanges or through so-called swap-execution facilities. However, the new rules would not apply to end-users -- companies such as AEP that use derivatives to hedge operational risks.

Price Collar

The Senate environment bill, dubbed Kerry-Boxer for Senators John Kerry of Massachusetts and Barbara Boxer of California, the two Democrats who introduced it, contains little detail on how the cap-and-trade market would work. It sets a price floor of $11 per ton on carbon. The bill also creates a strategic reserve of allowances that the government could use to flood the market if the price of carbon shoots up.
“It will be the best-regulated market in the country,” Stevenson says. “The effort is to make all of the trading known to the regulator. That wasn’t the case in the mortgage market.”
Wall Street sees profits at every stage of the carbon-trading process. Banks would make money by helping clients manage their carbon risk, by trading carbon for their own accounts and by making loans to companies that invest to cut greenhouse gas emissions.

Chicago Climate Exchange

A clear U.S. price on carbon, determined in a large market, would help drive billions of dollars into investments to clean the air, says Richard Sandor, founder and chairman of the Chicago Climate Exchange and the Chicago Climate Futures Exchange. He is also the principal architect of the interest-rate futures market.
“What’s important is the price signal,” Sandor says. “It will stimulate inventive activity and cause behavior to change.”
The Chicago Climate Exchange, the biggest U.S. voluntary greenhouse-gas-emissions trading system, trades 180,000 tons of carbon a day, up from 40,000 tons in 2006.

Over time, carbon, like other commodities, needs markets linked around the world, Goldman’s Nicholas says.
“If you believe the science and that something needs to be done about this, the market probably needs to be big,” he says. “Carbon could become an important commodity. I’m not saying it will be bigger than others, but it will be another important business for us.”
Polluters Only

Critics, including Senator Cantwell, espouse a smaller, less complex market in which pollution permits would be publicly exchanged only among fossil-fuel producers. Such a system may block progress on the environmental goals, says JPMorgan’s Masters.
“We say, ‘Let’s incentivize people to have the lowest-cost opportunities to avoid carbon emissions,’” she says.
Masters has been dealing with complex securities since she did a summer internship on JPMorgan’s London derivatives desk while she was at Cambridge. She joined the desk full time soon after graduating in 1991. The derivatives group’s task was to find ways to spread the risk of JPMorgan’s loans, partly to reduce the amount of capital it was required to hold in reserve against them.

Offloading Risk

In 1994, Exxon Corp. needed a credit line after it was threatened with a $5 billion fine for spilling 10.8 million gallons (40.9 million liters) of oil into the ocean off Alaska in 1989. Masters asked the London-based European Bank for Reconstruction and Development to take on the Exxon risk in exchange for an annual fee paid by JPMorgan, according to “Fool’s Gold,” a book by Gillian Tett (Free Press, 2009) that chronicles the history of credit derivatives at JPMorgan. The loan would remain on JPMorgan’s books and be insured by the EBRD, an international bank owned by 61 countries that supports development projects in Central Europe.

The bankers called the contract a credit-default swap.

Masters left the credit derivatives unit in 2001 to do other jobs at the bank. From 2004 to 2007, she served as chief financial officer of the investment bank. Since she took over the commodities division in 2007, its staff has almost doubled to 400 employees. The firm added Bear Energy to the division when it acquired Bear Stearns Cos. in the March 2008 heat of the credit crisis.

In December 2008, Masters led the purchase of UBS AG’s agriculture business and Canadian commodities operations. She now sits in a corner office in Bear’s former Madison Avenue tower. Outside her glass door are rows of traders making markets in metals and oil futures.

Subprime Carbon

Friends of the Earth’s Chan is working hard to prevent the banks from adding carbon to their repertoire. She titled a March FOE report “Subprime Carbon?” In testimony on Capitol Hill, she warned:
“Wall Street won’t just be brokering in plain carbon derivatives -- they’ll get creative.”
Sitting in Cafe Madeleine, a small sandwich shop on a hilly stretch of California Street in San Francisco, Chan, 37, talks over coffee about her campaign. She’s brought her own ceramic mug from her crammed office across the street.

Chan started at FOE -- the biggest network of environmental groups in the world, with offices in 77 countries -- on a six- month fellowship after she graduated from the University of California, Los Angeles in 1994. Her first job was to pin responsibility for what FOE regarded as environmentally damaging projects on the banks that loaned the enterprises money.

Three Gorges Dam

In 1997, Chan uncovered and helped publicize loans to China’s Three Gorges Dam by banks including Morgan Stanley and Merrill Lynch. Since then, Wall Street banks have sought Friends of the Earth’s help in burnishing their environmental image.

In 2005, Chan worked with Goldman Sachs to write an environmental policy statement for the firm, she says.

Carbon isn’t like other commodities, Chan says. The government’s goal to reduce pollution means it will gradually diminish the number of allowances it issues, and that will be a powerful incentive for speculators to try to corner the market and drive up the price, she says.

While banks say they’re a long way from packaging securities from environmental credits now, Chan points to two deals that Zurich-based Credit Suisse Group AG completed in 2007 and 2008 that each combined more than 20 different offset projects, then sliced them into tranches and sold them to investors. The securities were the equivalent of carbon CDOs, Chan says.

Boom and Bust

Chan has an ally in hedge fund manager Michael Masters, founder of Masters Capital Management LLC, based in St. Croix, U.S. Virgin Islands. He says speculators will end up controlling U.S. carbon prices, and their participation could trigger the same type of boom-and-bust cycles that have buffeted other commodities.

In February 2009 House testimony, Masters -- who is no relation to Blythe Masters -- estimated that the early 2008 price bubbles in crude oil, corn and other commodities cost U.S. consumers more than $110 billion.

The hedge fund manager says that banks will attempt to inflate the carbon market by recruiting investors from hedge funds and pension funds.
“Wall Street is going to sell it as an investment product to people that have nothing to do with carbon,” he says. “Then suddenly investment managers are dominating the asset class, and nothing is related to actual supply and demand. We have seen this movie before.”
Companies Need Banks

Still, companies need the financial markets to help them drive down their greenhouse gas emissions at a reasonable price, says the NRDC’s Stevenson.
“There are trillions of dollars needed to make this transition, and companies need the banks,” says Stevenson, a former trader for London-based hedge fund firm Brevan Howard Asset Management LLP.
Stevenson dismisses as overblown the concern that banks will soon be packaging greenhouse gas allowances into securities that look like CDOs. The banks stand to make more money, he says, as lenders to companies that need to invest in new power plants and factories to reduce their emissions.
“I would argue that this is only a bonanza for the banks in that they get to go back to their day jobs -- which is lending money,” Stevenson says. “I’m suspect of them generating a lot from carbon trading itself in the early years.”
Northeast Test Case

A relatively small-scale cap-and-trade effort called the Regional Greenhouse Gas Initiative tells a cautionary tale. RGGI is a CO2 reduction program established by a group of northeastern and mid-Atlantic states in 2003 with a goal of cutting CO2 emissions from power plants in the region 10 percent by 2018. Ten states are now members. Trading in the companies’ pollution permits began in September 2008 -- in the middle of the financial crisis. As of mid-November 2009, prices of the pollution permits were down 50 percent, according to data compiled by Bloomberg.

Meanwhile, the 10 best-performing investment funds with climate change or clean energy as a central goal all plunged 40 percent or more in 2008, according to data compiled by London- based New Energy Finance. The shrinking global economy sapped momentum for developing new environmental projects.
“To mobilize capital now and begin a transformation to new energy technologies is a very risky business,” says Ken Newcombe, founder of C-Quest Capital, a Washington-based carbon finance business that invests in offsets. “Returns have to be reasonable to take on those risks.”
Risk Capital Vital

Newcombe is the former head of Goldman’s U.S. carbon market origination and sales department and one of the world’s first carbon traders. He holds a Ph.D. in energy and natural resource development from the Australian National University. Private money, including capital from banks, hedge funds and other investors, must keep flowing into the system to realize global environmental goals that the Copenhagen meetings will try to hash out, he says.
“The ultimate objective is economic efficiency,” Newcombe says. “How can we reduce the cost of implementing important public policy? Having a pool of risk capital is absolutely vital to the smooth introduction of a cap-and-trade regime in the U.S.”
As Washington debates climate policy in the shadow of the recent financial meltdown, lawmakers have a right to be wary, Newcombe says.
“There’s legitimate concern that there may be unseemly profits or untenable risks,” he says. “But a problem now is that the critical objective of stabilizing the financial system could lead to an overregulation of the carbon market.”
‘Such a Fog’

Meanwhile, the industrial firms that would be affected by cap and trade are eager for the game to begin, says Lew Nash, a Morgan Stanley executive director and the firm’s U.S. point person on the carbon markets.
“There is such a fog right now in terms of how the legislation is going to work,” Nash says. “There is a real economic desire here for price signals that will permit the market to properly price carbon. Our customers have little choice but to participate in this evolving market.”
Nash says his clients aren’t just looking for help figuring out how to use carbon trading to manage their emissions caps. Pricing carbon will also set the tone for strategic investments. If a company wants to build a new factory, for instance, it’s going to need to factor prospective carbon emissions into its construction and operational plans, Nash says.

Supporters of cap and trade see, over many years, a remaking of the U.S. industrial landscape and a sharp reduction in the gases that cause global warming. Little will happen, though, until the debate is resolved between the bankers who want more liquidity.

Copenhagen Con Men Launch Global Carbon Tax Heist
Paul Joseph Watson - While flying into Danish capital on luxurious private jets and being shuttled around in limousines, climate crooks get ready to rape the middle class
Cap and Trade is a Goldman Sachs and Enron Scam
NoWorldSystem - Enron, one of the most corrupt gangsters besides the Goldman Sachs mafia also take part in this new carbon-credit scheme.
Cap and Trade Is a Tax and It’s a Great Big One
Heritage Foundation - It will hurt senior citizens, the poor, and the unemployed the worst.
How Goldman Sachs Made Tens of Billions Of Dollars from the Economic Collapse of America
California watchdog sees climate policy job losses
Reuters - California is likely to see modest job losses in the near term from its aggressive climate change policy due to higher energy costs and other factors.
Bernie Sanders compares climate skeptics to Nazi deniers
Politico - Vermont Senator Bernie Sanders is comparing climate change skeptics to those who disregarded the Nazi threat to America in the 1930s
The Globalist Push to Crush the Rich Nations in Preparation for Global Carbon Tax and NWO
Mark Matheny - My friends, it looks as though his plans are coming to fruition.
Stern backs $100bn IMF climate fund plan
Environmental Finance - A climate fund proposed by the International Monetary Fund (IMF) to raise $100 billion a year by 2020 has won support from climate change economics guru Nicholas Stern.

Go to The Lamb Slain Home Page