Carbon Credits – A Load of Hot Air?

I’ve been getting a lot of calls recently from companies using high pressure sales tactics to sell carbon credit investments. I’m afraid I’m less than polite with these “financial advisors” but I don’t feel too guilty about hurting their feelings considering they’re all thieving, low-life, scum of the Earth, granny swindling, morally bankrupt, dishonest, bullying, nasty, contemptible, disgusting, would steal from their own mothers, smell of poo, con-men and swindlers.

If you’ve been receiving calls from these con artists, put the phone down.

In the UK, the FSA have issued a warning about these scams, where boiler room operations cold-call and bully you into parting with your life savings with promises of huge returns. Trouble is, the investments they’re selling are of spurious quality at best and often can’t be sold on without incurring costs many times the value of the investment.

If you’re interested in carbon credits, do your research and seek professional advice first. The market is extremely hazardous for the casual investor as the only validated certificates are CER’s (Certified Emission Reductions) but these can only be bought or sold in large quantities and attract legal preparation costs. The only other contract (and these are the ones being sold by the boiler rooms) are VER’s (Voluntary Emission Reduction) certificates which can be traded at lower volumes but are of hugely varying quality, and therefore value, as they’re not certified as legitimate by any authority – ie. you have no idea what you’re buying. The salesmen will try to fool you by telling you their VER is actually a CER because it’s been certified by an independent authority, but  anyone setup as an authority to certify a VER (including the salesman) and therefore it’s of no value whatsoever.

The Carbon Trading Exchange offers the only legitimate online trading platform that I can find for both types of contract, and crucially offers liquidity, price transparency and due diligence on VER’s so you should be able to buy and sell at realistic market prices with a degree of safety. I should point out that I’ve no experience with the CTX, so can’t vouch for them personally however they do look like the most professional and trustworthy outfit in a sea full of sharks.

You should be aware however that the FSA doesn’t provide any protection or legislation for carbon credit investments, so it really is a case of Caveat Emptor!

Adam – TheDayTrader

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About TheDayTrader

My name is Adam. I'm a day trader. I've been trading full time, mostly Forex but stocks and indices too since 2009 and I love it. When I'm not trading, I'm writing about trading here and for trading magazines, learning to fly and enjoying country life in the Cotswolds with my wife, dog and chickens.