Critics charge that carbon trading is a smokescreen. At best, it is designed to attain “carbon neutrality”—representing no net growth in emissions for a country or industry, but doing so cheaply. At worst, it may make the warming climate even less stable, while robbing the poor of their rights.
Soumitra Ghosh, who works with forest workers in India, worries that such carbon trading will only further global inequality. It has the potential to set up a system, he says, "wherein the poorest and darkest-skinned pay the highest price— with their health, their land, and, in some cases, with their lives — for continued carbon profligacy by the rich.”
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The World Bank's involvement
Foremost among those set to profit from carbon trading is the World Bank -- also a major financier of fossil fuel developments.Here, the World Bank saw opportunity. One leaked document exposed World Bank plans to profit handsomely by charging a five percent commission on carbon transactions, in a self-appointed role as a broker between Northern and Southern governments and industries. (This “commission”— which they now claim is merely to cover their costs — will be closer to 8 or 10 percent.) With a potential market in CO2 that could reach $2 billion by the end of 2005, the World Bank noted in this memo, it could quickly earn $100 million in one year — and that was just for starters.
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The Bisasar Road dump is emblematic of the sort of global apartheid carbon trading encourages, allowing Northern governments to profit from over-use carbon in the North while forcing the poorest and darkest skinned in the South to pay with their health and their lives. Worse, because there are no limits on greenhouse gas emissions in the developing world, the sort of emissions trading being proposed by various CDM actors could create perverse incentives for greater inefficiencies – such as allowing more dumps to be built without methane capture as part of their design in order to lure potential carbon traders – and higher overall greenhouse gas emission as a result.
http://www.corpwatch.org/article.php?id=11893