Carbon markets are in the dumps and the future for these so called “flexible mechanisms” is grim. It’s no wonder carbon markets are collapsing; we don’t need them because weak pledges and the economic crisis are reducing emissions for us. The next international climate negotiations (COP 18) are held at the end of November in Doha, Qatar. For two weeks delegates from close to 200 countries will negotiate the future of the planet. Our message is simple and clear: countries must dramatically increase their pledges to reduce emissions immediately, otherwise we will not stand a chance to prevent catastrophic effects of climate change.

The European Union is considered a leader in the international negotiations on climate change. Its main instrument to cut greenhouse gases (GHGs) from industrial emitters is the European Emissions Trading Scheme (EU ETS). However, the effectiveness of the EU ETS has been increasingly questioned because of a massive over-supply of emission permits. Still, it remains a crucial model for the development of other carbon markets globally and influences the way policies are constructed to tackle climate change.

Last month coal was let back into the CDM. Yes you heard right, despite all evidence new heavily polluting coal power plants can once again apply to earn carbon credits. So, theoretically, a coal-fired power plant in Europe can still offset its emissions with carbon credits from another dirty coal power plant in India. The situation is absurd! It’s the worst decision the CDM Executive Board has made in years and essentially helps to subsidise the construction of new coal power plants. This must be stopped. No more climate finance to coal!