Green Investment Schemes are finally starting to happen. Several countries of
In late 2005 and early 2006 this blog wrote some views on Green Investment Schemes. Too wordy and too early. This and the next article summarise the main points, which remain largely valid.
This article aims to clear confusion about the origins, and the rights and wrongs of greening. Buyers of AAUs claim that there is something “wrong” with buying “hot air” from Central and Eastern European countries. Actually, the facts are as follows:
§ The surpluses of AAUs in Central and
§ The principles for establishing the number of AAUs were agreed by consenting sovereign parties in free negotiations on the Kyoto Protocol in 1997
§ In 1997 it was known that the economies of Central and
§ Neither the Kyoto Protocol nor the Marrakech Accords contain any provisions regulating the use of proceeds from the sale of AAUs
So: the surplus of AAUs results from free and fair negotiations held by consenting parties in knowledge of the material facts. There can be no complaints. Hot air sounds like a bad word. But actually it is a fair deal.
The truth is that the Protocol as originally agreed was insufficiently robust, and the surplus knowingly granted to Central and
Greening allows buyers to justify transferring large sums of money to Central and East European governments. The scare stories about villas in
It is worth noting that sellers also like greening. They like greening because they want to establish an upmarket instrument against which they believe