The Briefing Room has a report on the connection between Enron and Carbon Trading.
Amidst the talk about the benefits that Kyoto Protocol is supposed to promote, it is perhaps forgotten especially amongst the greenies how Kyoto was born in the corridors of very big business. The name Enron has all but faded from our news pages since the company went down in flames in 2001 amidst charges of fraud, bribery, price fixing and graft. But without Enron there would have been no Kyoto Protocol.You don't suppose that all this CO2 hysteria is a con do you?
About 20 years ago Enron was owner and operator of an interstate network of natural gas pipelines, and had transformed itself into a billion-dollar-a-day commodity trader, buying and selling contracts and their derivatives to deliver natural gas, electricity, internet bandwidth, whatever. The 1990 Clean Air Act amendments authorized the Environmental Protection Agency to put a cap on how much pollutant the operator of a fossil-fueled plant was allowed to emit. In the early 1990s Enron had helped establish the market for, and became the major trader in, EPA’s $20 billion-per-year sulphur dioxide cap-and-trade program, the forerunner of today’s proposed carbon credit trade. This commodity exchange of emission allowances caused Enron’s stock to rapidly rise.
Then came the inevitable question, what next? How about a carbon dioxide cap-and-trade program? The problem was that CO2 is not a pollutant, and therefore the EPA had no authority to cap its emission. Al Gore took office in 1993 and almost immediately became infatuated with the idea of an international environmental regulatory regime. He led a U.S. initiative to review new projects around the world and issue ‘credits’ of so many tons of annual CO2 emission reduction. Under law a tradeable system was required, which was exactly what Enron also wanted because they were already trading pollutant credits.
Thence Enron vigorously lobbied Clinton and Congress, seeking EPA regulatory authority over CO2. From 1994 to 1996, the Enron Foundation contributed nearly $1 million dollars - $990,000 - to the Nature Conservancy, whose Climate Change Project promotes global warming theories. Enron philanthropists lavished almost $1.5 million on environmental groups that support international energy controls to “reduce” global warming. Executives at Enron worked closely with the Clinton administration to help create a scaremongering climate science environment because the company believed the treaty could provide it with a monstrous financial windfall. The plan was that once the problem was in place the solution would be trotted out.
I'll let you calculate the odds.
Cross Posted at Classical Values