Sir Nicholas Stern, author of the famous Stern Report, which underpins many an argument in favour of climate change mitigation, is behind a ‘carbon credit reference agency‘ launched today.
“If we are to attract the levels of finance necessary to make this a mainstream market and have a strong impact on emissions reduction, risks must be clearly understood, articulated and managed. A detailed ratings system is a vital tool to bring greater clarity, transparency and certainty to the market,” he said.
Of course, where there’s muck, there’s brass.
The agency, run by the IdeaCarbon group of which Lord Stern is vice-chairman [he is in fact vice-chairman of IDEAglobal], said it would offer investors a guide to the quality of credits and the likelihood that they would be delivered. Sellers of carbon credits would have to pay to have their products rated, while buyers would also pay to gain access to the ratings.
IDEAcarbon sell themselves accordingly:
IDEAcarbon is an independent and professional provider of ratings, research and strategic advice on carbon finance. Our services are designed to provide leading financial institutions, corporations, governments, traders and developers with unbiased intelligence and analysis of the factors that affect the pricing of carbon market assets.
Other group directors include:
Ian Johnson – Chairman
Ian joined IDEAcarbon following a distinguished career at the World Bank. For eight years he was the Bank’s Vice President for Sustainable Development overseeing its work on climate change and carbon finance. Prior to that he played a major role in negotiating the establishment of the Global Environment Facility (GEF) and managed its day-to-day operations for six years. Ian is presently an advisor to Globe, G8+5 and to the UNFCCC.
Samuel Fankhauser – Managing Director (Strategic Advice)
Sam served on the 1995, 2001 and 2007 assessments of the Intergovernmental Panel on Climate Change. He also gained hands-on experience in the design of emission reduction projects as a climate change economist for the Global Environment Facility and the World Bank. Sam joined IDEAcarbon from the European Bank for Reconstruction and Development, where his most recent position was Deputy Chief Economist.
Now, just imagine the fuss that would ensue, were some figure who was depended on for his impartial advice to make public statements on climate change that weren’t in accordance with the ‘consensus’, and it turned out that that person had a financial interest in the public’s perception on matters that he advised about? Might there not be some protest? After all, it’s not as if his advice is subtle:
Lord Stern, the former World Bank chief economist whose landmark report on the economics of climate change warned the world risked plunging into economic depression if action was not taken urgently on greenhouse gases, said carbon trading was a “key plank” in dealing with climate change.
It is often said that ‘climate change will be worse for the poor’. Well, it turns out that it will be great for the rich. As a December ’07 press release shows, there’s plenty to be positive about climate change:
“By 2020 the global carbon market could be worth EUR 240-450 billion” says Lord Nicholas Stern, Vice Chairman of IDEAGlobal Group, in the inaugural issue of CARBONfirst
He’s no fool, Sir Nick. This gives the lie to the claims that environmentalism is the continuation of anti-capitalism – there is clearly room for capitalists at the fair-trade, organic, global warming beano.
Just shouting about hypocrisy gets nothing done, and doesn’t change anything. But how does this happen? Why isn’t Stern embarrassed about this? Why don’t we see an equivalent to Exxonsecrets.org, showing the monied interests buzzing around the global warming issue? Why is it that this kind of barefaced conflict of interests is largely overlooked, while people like James Hansen call for oil company executives to face trials for ‘high crimes against nature and humanity‘, allegedly for distorting the public perception of climate change for profit?
What this shows is that ‘the ethics of climate change’ allow for financial and political interests to be overlooked for the ‘greater good’. The fact that Stern has been instrumental in creating the idea of mitigation serving that greater good must, by the very standards demanded by the environmental movement, surely raise questions about his profiting from it. Yet don’t expect outrage, because, as we have seen before, the ethics of climate change only apply one way. To challenge Sir Nicholas’s apparent profiting from his report would be to undermine the very foundations of so many environmentalists’ arguments. For example, one of our favourites, Sir Bob May, former president of the Royal Society, in his review of the Stern Report and George Monbiot’s Heat, cites Stern as an authority on ‘the facts’ which we are expected to ‘respect’.
Despite the growing weight of evidence of climate change, along with growing awareness of the manifold adverse consequences, there remains an active and well-funded “denial lobby”. It shares many features with the lobby that for so long denied that smoking is the major cause of lung cancer. […] Whoever got things started, this is a ball which ExxonMobile picked up and ran with, shuttling lobbyists in and out of the White House as it did so. Following earlier talks and seeking to exemplify its centuries-old motto – Nullius in Verba (which roughly translates as “respect the facts”) – the Royal Society recently and unprecedentedly wrote to ExxonMobile, complaining about its funding for “organisations that have been misinforming the public about the science of climate change”, and more generally for promoting inaccurate and misleading views – specifically that scientists do not agree about the influence of human activity on rising temperatures.