Japan industry re-thinking cap-and-trade. And well they should.

2010年06月11日 Saidani

Clim-a-tize me, Cap'n!A governmental panel (yes…another governmental panel) established by the Ministry of Economy, Trade, and Industry met yesterday and representatives of Japanese industry (unnamed in the Nikkei report) were less than lukewarm about a proposed cap-and-trade system.

One industry representative said the panel “should not assume that the trading system will be introduced.”  Another asserted that “greenhouse gas emissions will not decrease through the introduction” of cap-and-trade.

But for a government in dire need for revenue in which to fund their growing vote-buying social schemes, something has to be done to extract funds from the private sector.  Panel chair Jitsuro Terashima from the Japan Research Institute told reporters after the meeting, “It’s too optimistic to think that the system will solve the issue.  We will discuss it along with other measures, such as an environmental tax.”

Next month, the panel will meet and look at how Europe is handling the system.  We will give readers a look at that now.

According to the National Center for Policy Analysis (NCPA) an industry-friendly think tank, the system in Europe doesn’t work.

When trying to slow down global warming, beware of unintended consequences, says Steven Mufson in the Washington Post.

Consider Kollo Holding’s (a silicon carbide maker) factory in the Netherlands:

  • Managers at the factory say their plant as an ecological standout: They use waste gases to generate energy and have installed the latest pollution-control equipment.
  • But Europe’s emissions program has driven electricity prices so high that the facility routinely shuts down for part of the day to save money on power, which, contrary to environmental goals, reduces energy efficiency.
  • Although demand for its products is strong, the plant has laid off 40 of its 130 employees and trimmed production.
  • Two customers have turned to cheaper imports from China, which is not covered by Europe’s costly regulations.

They aren’t the only ones suffering, says Mufson.  French cement workers fear they’re going to lose jobs to Morocco, which doesn’t have to meet the European guidelines; and German homeowners pay 25 percent more for electricity than they did before the caps.

Making matters worse, the rationing hasn’t proved successful, says Mufson:

  • Because of lobbying by well-connected companies, the EU’s limits on emissions ended up being higher than the actual emissions.
  • As a result, fewer companies than expected had to buy emissions this year, and the price of carbon allowances, which had topped $30 per ton of carbon about a year ago, crashed to about $1 a ton.
  • Germany boasts that it has cut emissions to 18.4 percent below 1990 levels, but nearly half the reduction was because of sagging industrial output in the former East Germany after reunification.
  • For the 2008-2012 period, European Union officials sliced 5 percent off Germany’s emissions proposal.

Source: Steven Mufson, “Europe’s Problems Color U.S. Plans to Curb Carbon Gases,” Washington Post, April 9, 2007.

For some Japanese, however, they see some sort of justice in having industry pay for their emissions.  Really?

Advocates of the system like it because “the polluter pays.” Setting aside for the moment the question of whether it is justifiable to call carbon dioxide a pollutant, companies of course do not simply absorb these extra costs. Instead, they pass them on to their customers who are also, by and large, taxpayers. Not only does the taxpayer carry the cost of any cap and trade scheme, but their money also provides profit for a whole new industry: the new carbon trading sector, the middlemen who make the system work.

And just who is that middleman?  Let’s take a look at who owns the exchange.

This is from the Chicago Climate Exchange page on Sourcewatch.org

Barack Obama was a member of the board of the Chicago Climate Exchange from 1998 to 2001

The Joyce Foundation was an early funder of the Chicago Climate Exchange, providing $12,000

Let’s look a little deeper into the Joyce foundation and Barack Obama.

Know the crooks and their roles:
George Soros, Joyce Foundation and connection to CCX.
What is CCX, the Chicago Climate Exchange, projected to gross 10 Trillion a year is Cap-N-Tax passes. Obama played a pivotal role in the formation of the CCX. (Click here for expose)
Barrack Hussein Obama, Board Member of the Joyce Foundation, funded the formation of the CCX. (
Valerie Jarrett is still on the board, Obama’s top adviser.) Obama sat on board and funneled money to Ayer’s (Bill Ayers, former domestic terrorist and Obama friend) brother (wild huh, just a guy in his neighborhood) and to form the CCX.
AL Gore–Goldman Sachs– GIM: Hold on to your britches, London-based Generation Investment Management sees the Trillion and they purchased a huge stake in Chicago Climate Exchange (fifth largest shareholder.)  The founder of GIM is none other than former Vice President Al Gore along with Goldman people. For example other founders are David Blood (former Goldman executive), Mark Ferguson (Goldman) and Peter Harris (Goldman) to name a few. “
Franklin Raines, mega crooked banker and bust Fannie Mae head, uses Fannie Mae (taxpayers money) to buy the technology to measure and manage carbon. The patent was award the day after Obama and Dems won the election.
Goldman Sachs owns ten percent of the CCX and its 10 Trillion a year potential. (CCX is 10% owned by Goldman Sachs (GS) and 10% owned by Generation Investment Management (GIM).) Gore, Goldman, and Cap and Trade – Tangled Web of Corruption

So, we have Obama, his political adviser Valerie Jarrett, George Soros, former Vice President and chief advocate for climate change Al Gore, Obama friend Franklin Raines, and Goldman Sachs all set up as the middlemen to profit in the more than $10 trillion in cap-and-trade business which neither saves the planet nor produces anything of value.

These are the people who run the US now and who would like to spread their authority into Asia and Europe.  These are the people that PM Kan wants to be partners with and with whom he trusts the security of Japan.

The Japanese industry is rightly concerned about the effects of cap-and-trade on business in Japan.  The Japanese people and the Kan administration should also be concerned and for a lot of reasons that have nothing to do with business.

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