Slam carbon scams

The Prime Minister suggested in a recent speech to the centre-left McKell Institute a “carbon price” was justified because “our world faces real and urgent threats from climate change like rising sea levels. Our country faces very direct threats too: worse bushfire conditions and droughts, more days of extreme heat, increased cyclone intensity, bleaching of coral reefs.”

Similar claims, half-truths and exaggerations - especially by the Climate Commission, “clean energy” promoters and players in domestic and international climate politics - ironically attract little or no regulatory interest because they are considered outside agency jurisdiction.

When Brumbies franchisees reportedly were told to remove Liberal Party placards on the carbon tax from their stores, the government urged all shop owners to do likewise.

This was not an ACCC issue, however, according to Dr Schaper. “The carbon tax has attracted all manner of debate. We are not buying into that one way or the other. We are simply focussed on enforcing the law about misleading and deceptive conduct” (12July ABC RN AM interview).

The ACCC successfully prosecuted Prime Carbon Pty Ltd in early 2010 over a soil carbon and sequestration program it was selling to farmers to extract atmospheric carbon (dioxide) and store it in agricultural land.

The Federal Court found it made false or misleading representations concerning its services in relation to the sale of carbon credits. ACCC’s then chairman, Graeme Samuel, said this outcome signalled vigorous pursuit of any company making misleading statements in the carbon credit market.

What is ASIC’s role?

The Australian Securities and Investments Commission (ASIC) is another agency responsible for national consumer protection, but only in relation to financial products and services.

ASIC’s role is to supervise “activity in the carbon markets” and to regulate “entities and individuals providing financial services and operating financial markets in regulated [designated greenhouse gas] emissions units”.

It presumably also monitors public statements and activities of ASX-listed and unlisted “carbon” farmers, traders, alternative energy companies and other entities with similar vigilance to the ACCC.

One hopes so, for the surreal game of human (and animal) emissions monetisation now underway has sufficient sub-prime seeds for a future Carbon Crash. Will ASIC ensure the investing public is fully informed about all the risk factors in the new products?

At the 2July 2012 deadline, there were 175 entities on ASIC’s “carbon registrant register” keen “to provide financial services in relation to regulated emissions units”. They include the Canberra Carbon Cargo Cult Club’s (CCCCC) biggest fans: “carbon” bankers, verifiers, accountants, “aggregators”, traders, asset managers, offset providers and so on.