The UN Carbon Scam

  • Date: 14/07/10

UN’s Clean Development Mechanism to use European carbon offset credits to subsidise 20 ‘efficient’ coal plants in India and China: The UN is set to channel billions of pounds of public money from rich countries to giant energy companies to build 20 heavily polluting coal-fired power plants on the basis that they will emit less carbon dioxide than older ones.

Data seen by the Guardian shows that 12 companies have applied to the UN for hundreds of millions of emission reduction credits to subsidise “efficient” coal-fired power stations in China and India. Many of the plants would be paid for with carbon offsets bought by British and European companies in lieu of cutting their own emissions.

If, as expected, the power company applications are approved by the UN Framework Convention on Climate Change (UNFCCC), they will earn around £3.5bn at current carbon market prices. This would make the UN body set up to promote clean energy and reduce global climate emissions one of the world’s largest provider of funds for new coal burning.

The rush by companies to take advantage of the UN’s Clean Development Mechanism (CDM) subsidies follows the successful application for credits by the Indian Adani coal group for two large power stations at Mundra in Gujarat, India. Adani will earn around £25m a year for the lifetime of its power stations in return for using “super-critical” technology, which burns the coal at lower temperatures and emits up to 30% less carbon dioxide than conventional power plants.

Full story

Recent Popular Articles


We use cookies to help give you the best experience on our website. By continuing without changing your cookie settings, we assume you agree to this. Please read our privacy policy to find out more.