A simple explanation of how emissions trading really works.

1. Emissions Trading 101

2. The Great Big Money-Go-Round...

3. Power Co.
“We keep your lights on”

4. Industry Inc.
“We make things”

5. Retailer Inc.
“We sell things”

6. Government Is Here
“The Public Trough”

7. You Are Here
“Conned Citizens”

8. At a high-powered
Government meeting
with Big Business...

9. Industry Inc.
“We make things”
Power Co.
“We keep your lights on”

10. Department of Climate Change
Higher Taxes - Strategic Planning Division
Well boys, we’ve found a way
to put a tax on thin air
Yeah so... what’s in it for us?

11. Department of Climate Change
Higher Taxes - Strategic Planning Division
You get a share in the money-go-round
Eeeexcellent!
Here’s how it will work...

12. First, we’re going to
declare that carbon dioxide
is pollution...
Carbon Pollution!
But isn’t CO2 a clear,
odourless gas...
harmless plant food...
essential for life on earth?
DENIER!!

13. Second, we’ll put a “cap” on
how many tonnes of
“Carbon Pollution” the nation
can emit each year...
Carbon Pollution!
Then we’ll take that total
number of tonnes allowed for
the nation, and divide it up...

14. Department of Climate Change
Higher Taxes - Strategic Planning Division
We’ll decide how many tonnes
of CO2 each different industry
is allowed to emit each year
But isn’t that “picking winners”?

15. Department of Climate Change
Higher Taxes - Strategic Planning Division
Of course it is! Why do you
reckon we called you in here?!
Riiiiight... so, all cheques still
payable to your Cayman’s
retirement account?

16. Next, we’re going to create
lots of bits of paper, called
“Carbon Credits”...
Right to Emit
Carbon Credit Each carbon credit will be
equal to one tonne of CO2...
One tonne of CO2

17. These carbon credits will have a
starting value... kind of like a share
in a company, when it gets listed on
the Stock Exchange...
Right to Emit
Carbon Credit
One tonne of CO2

18. And we’re going to give each of
you guys a heap of them
Carbon Credits
Eeeexcellent!
Carbon Credits

19. Sounds great! So how many
“Carbon Credits” will my
industry get?
Mate, let me just say this...
we’re all about competition
here. This is all about a
Carbon Credits “market-driven” solution to
the Greatest Moral Challenge
of Our Time - our the threat
of global warming...
Carbon Credits

20. And you know something?
Your question brings me to a great
example of how a fair dinkum
competition-based policy works...
Carbon Credits
Carbon Credits

21. Department of Climate Change
Higher Taxes - Strategic Planning Division
Can you write more zeros on your
cheque than he can write on his?
That’s competition
for you...

22. Ok, so basically you’re
going to give us a pile of
“free” shares in your
scheme...
“Carbon Credits”...
Carbon Credits you got it!
And we can trade them
for real money, like on the
stock market?
Carbon Credits

23. Sure can! And you know something,
two wise guys named Dave Blood and
Al Gore have already set up a trading
market - the Chicago Carbon Exchange.
Carbon Credits
Ha ha ha ha ha! ...
Blood and Gore!?!
You’re killing me!
Carbon Credits

24. Department of Climate Change
Higher Taxes - Strategic Planning Division
Here’s the best part though.
We’re going to reduce the total number
of shares carbon credits over time...
which means that yours will be practically
government-guaranteed to go up in value
Eeeeexcellent!

25. Department of Climate Change
Higher Taxes - Strategic Planning Division
OK, but there’s one thing
I don’t understand ...
how will any of this reduce
emissions of CO2? Well, let’s say we give you 10,000 carbon credits.
That means you can emit 10,000 tonnes of CO2.
If you emit more, you’ll have to buy more credits.

26. Department of Climate Change
Higher Taxes - Strategic Planning Division
And if we emit less than 10,000 tonnes?
Can we sell our extra credits?
You sure can!

27. Department of Climate Change
Higher Taxes - Strategic Planning Division
Now, since we’ve promised to cut the number of
credits over time, eventually you’ll have to think
about cutting your emissions. Otherwise, you’ll
have an extra cost in your business. There won’t
be enough credits to go around. So you’d need to
start buying extra.

28. Department of Climate Change
Higher Taxes - Strategic Planning Division
But, couldn’t we just pass the cost
of buying extra credits on to our
customers, and not bother
reducing our emissions at all? Sure!
Eeeexcellent!

29. Department of Climate Change
Higher Taxes - Strategic Planning Division
Ok, great. But if you’re going to
impose this new cost of doing
business on us, we want some
compensation. You know, to No problem. How
help us “adjust” to the new much “compensation”
“carbon economy” do you want?
(wink wink, nudge nudge)
Eeeexcellent!

30. Department of Climate Change
Higher Taxes - Strategic Planning Division
Well, you’ve gotta make it worth our
while. After all, we could just sack our
workers, close up shop, and go set up Yeah, we figured you might say that.
again in a “developing” country Just give me a number, boys -
the taxpayer’s footing the bill
Eeeeexcellent!

31. Of course, administration for all
this new stuff ... not to mention
policing it ... means we’re going
to need a much bigger
Government bureaucracy...
Carbon Credits
Carbon Credits
But won’t some people think
this smells like an excuse for
Socialist,
Big Government, bureaucratic
empire building?

32. No problem. We’ll spin it
as a great thing for
unemployment and the
economy - lots of new
“Green Jobs”!
Carbon Credits
Compensation
Compensation Carbon Credits

33. Meanwhile, in the offices
of Big Banking...

34. TBTF
International Bank Pon Z
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
I told you our muppets in
government would deliver for us!
We’ll be raking in gazillions from
Emissions Trading soon

35. TBTF
International Bank Pon Z
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
I hope so, old chap.
That Subprime Bubble was simply
brilliant... while it lasted.

36. TBTF
International Bank Pon Z
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
But now we really need to get your
Great Carbon Bubble going ... or my
investors are going to start asking
awkward questions

37. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
Don’t worry, we’ll be able to start
pumping up our biggest bubble ever
real soon now
Can we go over how it works again..
for us, I mean?
Sure!

38. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
Since our housing bubble went bust,
we need a new way to make money
using our fancy derivatives systems

39. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
But aren’t these “exotic” financial
instruments what got us all into this
GFC mess?

40. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
Sure! But who gives a #%$&!*
We made a killing while it lasted.
Heck, I bought a new 80m yacht
just last month

41. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
And since the taxpayers’ have bailed us out
anyway, it’s all good. We knew that subprime
would implode some day... that’s why we’ve
been sponsoring the Global Warming scam.

42. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
We knew that after our dot com, housing,
and commodities bubbles, we would need
a new “paper tiger” to make huge
leveraged bets on.
Carbon Credits, right?
You got it!

43. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
That’s why we’ve spent years getting
our “Old Boys” into government.
We need politicians to do our dirty
work for us. They have to set up our Cap and Trade...
legislative framework “Emissions Trading”... ?
Yup! The Great Big
Money-Go-Round
Here’s how
it works ...

44. Government gives Big Business a
seat at the Public Trough.
Electricity companies, and other
CO2 emissions-intensive
Industry ... manufacturing, mining,
and the like ... all get a seat on the
Money-Go-Round.
Government
“The Public Trough”
Power Co. Industry Inc.

45. Naturally, we always have a seat at
the government table. After all, no
“market-based” solution can
operate without the banking and
finance sector ...
Bankster Inc.
Government
“The Public Trough”
Power Co. Industry Inc.
Indeed. They don’t call us the
“Masters of the Universe”
for nothing, ha ha ha ha!

46. And the Retail industry gets a seat
too. They’re actually vital to the
whole scheme.
Bankster Inc.
How so?
Government
“The Public Trough”
Power Co. Industry Co.
Retailers are going to be,
sort of like our own army of
tax collectors ... in disguise! Retail Inc.

47. First, the Government sets up
a bureaucracy for handing out
Carbon Credits...
Bankster Inc.
Carbon Credits
Power Co. Industry Inc.
Carbon Credits
Retail Inc.

48. And more bureaucracy
to hand out
compensation ...
Bankster Inc.
Carbon Credits So these are all spokes in
the wheel of the new
Big Government
Money-Go-Round?
Compensation
Power Co.
Industry Inc.
Compensation Carbon Credits
Yup...
Retail Inc.

49. And there you have it! The Great
Big Money-Go-Round, all set to
start turning ...
Bankster Inc.
Carbon Credits
You mean.. churning?
Compensation
Power Co.
Industry Inc.
Compensation Carbon Credits
Now you’ve got it!
Watch and learn ...
Retail Inc.

50. The Great Big Money-Go-Round

51. Power Co.
“We keep your lights on”

52. Industry Inc.
“We make things”

53. Retailer Inc.
“We sell things”

54. Government Is Here
“The Public Trough”

55. You Are Here
“Conned Citizens”

56. Industry Inc.
“We make things”
Retailer Inc. Power Co.
“We sell things” Government Is Here “We keep your lights on”
“The Public Trough”
You Are Here
“Conned Citizens”

57. Industry Inc.
“We make things”
Carbon Credits
Retailer Inc. Big Government
Power Co.
“We sell things” “We keep your lights on”
“Big Public Trough”
Carbon Credits
You Are Here
“Conned Citizens”

58. Power Co.
“We keep your lights on”
“Woo Hoo!”
Carbon Credits
CC = $$

59. Industry Inc.
“We make things”
“Woo Hoo!”
CC = $$
Carbon Credits

60. Retail Inc.
“We sell things”
“D’oh!”
Carbon Credits

61. Carbon Credits
[ ... whistling... ]
You Are Here
“Conned Citizens”

62. Industry Inc.
“We make things”
Bigger Government
Retailer Inc. “BIG Public Trough” Compensation Power Co.
“We sell things” “We keep your lights on”
Compensation
You Are Here
“Conned Citizens”

63. Power Co.
“We keep your lights on”
“Woo Hoo!”
Compensation
$$$$$$$$

64. Industry Inc.
“We make things”
“Woo Hoo!”
$$$$$$$$
Compensation

65. Retail Inc.
“We sell things”
“D’oh!”
Compensation

66. Compensation
“Thank you Fairy Ruddfather”
$
You Are Here
“Conned Citizens”

67. “Time to collect some
free, easy money... to crank up our new
carbon derivatives casino!”
Bankster Inc.
Carbon Credits
Compensation
Power Co. Industry Co.
Carbon Credits
Compensation
Retail Inc.

68. Power Co.
“We keep your lights on”
“Fees & Commissions! ...
Woo Hoo!”
“I need to buy / sell
some carbon credits please”
Bankster Inc.
CC = $$

69. Industry Inc.
“We make things”
“I need to buy / sell
some carbon credits please”
CC = $$
“MORE Fees & Commissions! ...
Woo Hoo!”
Bankster Inc.

70. Retail Inc.
“We sell things”
“#%$&!* parasites!”
“Wheeeeeeeee!...”
Bankster Inc.

71. “Wheeeeeeeee!...”
Bankster Inc.
“#%$&!* parasites!”
You Are Here
“Conned Citizens”

72. Bankster Inc.
Carbon Credits
“The cost of those extra
Carbon Credits is killing
our bottom line. Time to
pass on our extra costs Compensation
to the suckers
customers”
Power Co. Industry Co.
Carbon Credits
Compensation
Retail Inc.

73. Industry Inc.
“We make things”
WTF!?!
$$$$$
Power Co.

74. Retail Inc.
“We sell things”
WTF!?!
Power Co.
$$$$

75. Power Co.
WTF!?!
$$$$
You Are Here
“Conned Citizens”

76. Power Co.
“We keep your lights on”
“That’ll help cover
our extra costs”
Power Co.
$$$$$$$$

77. Bankster Inc.
Carbon Credits
“These electricity price
increases are killing our
bottom line. Time to
pass on our extra costs
Compensation to the suckers
customers”
Power Co. Industry Co.
Carbon Credits
Compensation
Retail Inc.

78. Retail Inc.
“We sell things”
“#%$&!* our suppliers
prices have really gone up”
Industry Co.
$$$$

79. Industry Inc.
[ ... whistling... ]
You Are Here
“Conned Citizens”

80. Power Co.
“We keep your lights on”
“#%$&!* our suppliers
prices have really gone up”
Industry Inc.
$$$$

81. Industry Inc.
“We make things”
“That’ll help cover
our extra costs”
$$$$$$$$
Industry Inc.

82. Bankster Inc.
Carbon Credits
Compensation
Power Co. Industry Co.
Carbon Credits
Compensation
Retail Inc.
“All these electricity price increases, and
industry price increases.. they’re killing
our bottom line. Time to pass on our
extra costs to the suckers customers”

83. Retail Inc.
WTF!?!
$$$$
You Are Here
“Conned Citizens”

84. Power Co.
“We keep your lights on”
Retail Inc.
[ ... whistling... ]

85. Industry Inc.
“We make things”
[ ... whistling... ]
Retail Inc.

86. Retail Inc.
“We sell things”
“That’ll help cover
our extra costs”
$$$$ Retail Inc.

87. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
There you have it... the
biggest money churn ever!
And we make money
every time a carbon credit
is traded?
Fees and Commissions baby!

88. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
But fees are nothing. The real money is in
the trillions of derivatives we’ll create,
so we can bet big on fluctuations in the
carbon price

89. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
But won’t volatility in the price of
carbon credits screw all the industries
that have to buy and sell them?

90. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
Who gives a #%$&!*?
We make money when the market
goes up or down.
It’s those big swings in the markets
that maximise our profits. OK ... but one thing I still
don’t understand...

91. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
Where does all the money
come from?

92. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
You mean... to pay for all the compensation...
and the big government bureaucracy... and for
the extra carbon credits that Power Co. and
Industry Inc. will have to buy... through our
Carbon Exchange casino?

93. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
Exactly. All this money churning
around ... and around ... and around.
It has to come from somewhere... right?
Sure! From the same place
it always comes from...

94. Retail Inc.
WTF!?!
$$$$
You Are Here
“Conned Citizens”

95. “ Woo Hoo! ...
More tax revenue!”
Bankster Inc.
Carbon Credits
Compensation
Power Co. Industry Co.
Carbon Credits
Compensation
Retail Inc.

96. Power Co.
WTF!?!
$$$$
You Are Here
“Conned Citizens”

97. “Woo Hoo! ...
MORE tax revenue!”
Industry Inc.
Compensation
Carbon Credits
Bankster Inc. Retail Inc.
Compensation
Carbon Credits
Power Co.

98. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
So... Emissions Trading is really just a huge
Socialist wealth redistribution scam?!
Redistributed to us... yeah!

99. TBTF
Pon Z
International Bank
of New York of London
“Big Bubbles No Troubles” “The Giza of Fund Management”
Brilliant! But what’s the plan for when
our Great Big Carbon Bubble
implodes... there is a plan, right?
Sure! It’s the same plan
that’s worked so well for us
every time...

100. Big Bankrupt Government
“The Bankster’s Bailout”
WTF!?!
$$$$$$
You Are Here
“Bankrupt Citizens”

101. The End
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