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Carbon Credits is not Carbon Neutral

Is the Emissions Trading Scheme really saving the Planet ?

The Emissions Trading Scheme or ETS was set up as a stock exchange by Al Gore to trade carbon credits [1]. The concept is simple. If you are producing greenhouse gases, you have a carbon deficit. If you are all green or you are producing green products, you have a credit. An organisation that has a deficit buys carbon credits from someone who has a surplus, to avoid paying fines and taxes. Now it can call itself Green or Carbon-Neutral.
Carbon Emission Sky photo created by


For example, take these fictitious companies -

Green-Cars : produces electric cars using processes that produce a lot of waste and a lot of emissions. It has a credit because it is producing electric cars. Therefore it doesn't matter how much pollution Green-Cars generates, it has a surplus.

Red-Plastics : produces plastics. This is a filthy process and it is producing a non-Green product. It has a carbon deficit. Actually it doesn't matter how efficiently it is producing plastics, it will still be in deficit.

Red-Plastics buys carbon-credits from Green-Cars. Green-Cars gets money and Red-Plastics is now Carbon-Neutral and is now a Green company.


Would it surprise you to know that Tesla has made a loss since it started. But last year it made a profit by selling its carbon credits ?

Carbon Neutral ?

Back to the example. Green-Cars is still producing pollution, it was never really Green anyway. And it hasn't changed any of its practises and it doesn't need to change any of its practises. Red-Plastics is still producing all the horrible pollution and it is producing a non-Green product. But it is now Carbon Neutral.

Yay, we have saved the planet. NOT !!! This is the kind of idiocy that is supposed to save our planet.


Luckily, I believe that the threat may be fictitious, so it doesn't matter much. The zealots are lying so much that I am unable to determine if the crisis is real.

References (a tiny sample)

Coming shortly. Sorry, I have a day job.
  1. Range of Electric Cars.