#urban cli"ate and trash $olitics*

deco""issionin+ the Bisasar ,oad %lean #evelo$"ent Mechanis", and e-$lorin+ dis$osal alternatives, botto"-u$ Patrick Bond, Khadija Sharife and Gcina Makoba
University of KwaZulu- atal School of Built !nviron"ent and #evelo$"ent Studies, #urban

$resented to the UKZ %entre for %ivil Society

&& 'uly ()&(

cartoons by Za$iro

.he case a+ainst Bisasar ,oad %#M

The CDM in Africa Cannot Deliver the Money

Why the carbon trading gamble wont save the planet from climate change, and how African civil society is resisting

Patrick Bond and Khadija Sharife

University of KwaZulu- atal ASchool report by the University of Kwa !l!"#atal Centre of #evelo$"ent Studies and for %entre Civil $ociety of &!ilt 'nvironment for%$chool %ivil Society, #urban and
Development $t!dies( and Dartmo!th College Climate )!stice *esearch +ro,ect $resented to the
A!thors.idelis Allen %#igeria( &ar!ti Amisi %Dem/ *ep!blic of Congo( +atric0 &ond %$o!th Africa( Keith &r!nner %U$A( *!th Castel"&ranco %Mo1ambi2!e( Michael Dorsey %U$A( Alm!th 'rnsting %3ermany( 3erardo 3ambira11io %U$A( Terri 4athaway %Cameroon( Adrian #el %#ew ealand( Will #ham %Canada( Khadi,a $harife %$o!th Africa( ')56T editor- 6eah Temper %$pain( ')56T reviewer- )oan Martine1"Alier %$pain(

/nternational Society for !colo+ical !cono"ics

&0 'une ()&(

cartoons by Za$iro

http-77cdmscannotdeliver/wordpress/com7

why trade in $ollution1 2orld Bank co""ends

3i"$eccable4 lo+ic
#5.!* #ece"ber &(, &66& .7* #istribution 8,* 9awrence :; Su""ers

3/ think the economic logic behind d!mping a load of to8ic waste in the lowest wage co!ntry is impeccable and we should face u$ to that< 5frica is vastly !nder$olluted4
=$re$arin+ for ori+inal ,io !arth Su""it, secret "e"o of Bank chief econo"ist 9arry Su""ers, later US .reasury Secretary and 7ba"a4s econo"ic "ana+er > full "e"o* www;whirledbank;or+?

Bra@ilian environ"ent "inister 'osA 9ut@enber+er*

9:o!r reasoning is perfectly logical

b!t totally insane/;

%ollor fired 9ut@enber+erB Su""ers beca"e US .reasury Secretary, President of :arvard and 7ba"a4s econo"ic c@ar

3wisely use natural resources while su$$ortin+ the robust +rowth develo$in+ countries still need< Cto "ove the econo"yD away fro" subo$ti"alities and increase efficiency > and hence contribute to short-ter" +rowth > while $rotectin+ the environ"ent;4 not mentioned by &an0< financial spec!lation in commodities and nat!re, < e8port"led growth, or < irrationality of so m!ch international trade, incl!ding wasted b!n0er f!el for shipping

May ()&(

at the %entre for %ivil Society, we don4t a+ree, so we hel$ed "ake a fil" =&;E "illion views?* www;storyofca$andtrade;or+

fil" critiFue of carbon tradin+ www;storyofca$andtrade;or+

b!t ban0s are desperate

UK Climate Change Minister

3reg &ar0er, =>?>@We want the City of 6ondon, with its !ni2!e e8pertise in innovative financial prod!cts, to lead the world and become the global h!b for green growth finance/ We need to p!t the s!b" prime disaster behind !s@

but the sub-$ri"e disaster isnt going away

neither are derivatives or AB!antitative 'asing bailo!ts

Source: IMF, Global Financial Stability Report, April 2010

wealthy +overn"ents4 debt reaches =$olitical? ceilin+

vast increase mainly reflects bailo!t of U$ and '!ropean ban0s in late =>>C

financiers now des$erate to

co""odify everythin+

we thin0 of carbon trading as Aprivatising the air-

how does carbon trading wor0D

carbon trading gamblein &660, US vice-$resident 5l Gore =later a carbon trader? $ushed for Kyoto to include e"issions "arkets in e-chan+e for 2ashin+ton4s su$$ort
%promise bro0en by FG"> vote in U$ $enate, ?FFC(

3ore contin!ed to fibAThe '!ropean Union has adopted this U$ innovation and is ma0ing it wor0 effectively there/

=An Enconvenient Tr!th, $; (E(?

e"issions "arket crashes, ())G-&(

())6 H5. fraud, ()&) resale fraud, ()&& theft-closure

does !U carbon tradin+ 3work effectively41

impossible to finance renewable energy with s!ch low carbon prices

Munich, May ((, ()&(

&avarian $toc0 '8change anno!nces e8it from emissions trading

The &avarian $toc0 '8change will cease its emissions certificate trading operations on H> )!ne =>?=/ After the vol!me of trading on '!ropean

stoc0 e8changes has pl!nged to practically 1ero in recent months, emissions trading lac0s the preconditions necessary to establish li2!id trading operations/ #!mero!s reasons have been cited for the decline, ranging from the waves of emissions certificate theft and IAT fra!d that devastated the image of emissions trading to the pl!nge in trading prices when a gl!t of largely free certificates swamped the mar0et/ @En its present form, emissions trading is not accepted by the mar0et/ 3iven the sit!ation in &r!ssels, the !ncertainty ca!sed by
the '!ro1one debt crisis and the gloomy economic prospects ahead, we do not anticipate that politicians will ta0e rapid action to ad,!st framewor0 conditions@, stated Dr/ Christine &ortenlJnger, Director of &ayerische &Krse A3/ htt$*IIwww;bayerische-boerse;deI+reen"arketI$resse;ht"l

2hat went wron+ with the !.S1

%an /!.5 defend !.S1

how is carbon tradin+ affectin+ 5frica1

htt$*IIcd"scannotdeliver;word$ress;co"

Many sites of emissions in Africa L e/g/, methane from rotting r!bbish in landfills, flaring of gas from oil e8traction, coal"b!rning electricity generation, coal"to"li2!id and gas"to" li2!id petrole!m refining, deforestation, decomposed vegetation in tropical dams L re2!ire !rgent attention, as do the proliferation of Afalse sol!tions to the climate crisis s!ch as mega"hydro power, tree plantations and biof!els/ Across Africa, the CDM s!bsidi1es all these dangero!s for"profit activities, ma0ing them yet more advantageo!s to m!ltinational corporations which are mostly based in '!rope, the U$ or $o!th Africa/

Niger Delta gas flaring

CDM players Tanzanian timber plantations

Ugandan forests and plantations Mozambican fuel-switch

DRC mega-dam

htt$*IIcd"scannotdeliver;word$ress;co"

Many sites of emissions in Africa L e/g/, methane from rotting r!bbish in landfills, flaring of gas from oil e8traction, coal"b!rning electricity generation, coal"to"li2!id and gas"to" li2!id petrole!m refining, deforestation, decomposed vegetation in tropical dams L re2!ire !rgent attention, as do the proliferation of Afalse sol!tions to the climate crisis s!ch as mega"hydro power, tree plantations and biof!els/ Across Africa, the CDM s!bsidi1es all these dangero!s for"profit activities, ma0ing them yet more advantageo!s to m!ltinational corporations which are mostly based in '!rope, the U$ or $o!th Africa/

*eport contents Chapter 5ne sets the conte8t for the carbon mar0ets and the CDM mechanism, revealing its contin!ing price collapse and gloomy f!t!re prospects/ Chapter Two maps the players in CDM mar0ets and vol!ntary schemes/ Chapters Three thro!gh 'ight are the case st!dies, beginning with $o!th Africas pilot CDM fra!d and environmental racism in D!rbans &isasar *oad landfill methane"electricity pro,ect, along with similar trends in 'gypt/ Chapter .o!r dissects the case of #igerian CDM corr!ption of local governance, especially where oil companies are receiving s!bsidies for red!cing their #iger Delta gas flaring L an act which by law they are prohibited from doing in the first place/ Chapter .ive addresses the emergence of trees, plantations and forests within CDM financing debates, with cases from Uganda, Mo1ambi2!e, the D*C, Tan1ania and Kenya/ Chapter $i8 is abo!t two failed CDM proposals both involving e8ploitation of Mo1ambi2!es gas reserves/ Chapter $even disc!sses the way mega"dams are being lined !p for CDM stat!s, with case st!dies from 'thiopia and the D*C/ Chapter 'ight considers the rise of the Kenyan and Mo1ambican )atropha biof!el ind!stries

htt$*IIcd"scannotdeliver;word$ress;co"

where are %lean #evelo$"ent Mechanis" $rojects funded1

Source: http://cdmpipeline.org/cdm-projects-region.htm

%hina and /ndia have been +arnerin+ J)KL of %#M $rojects

CDMs cannot deliver the money to Africa

Source: http://cdmpipeline.org/cdm-projects-region.htm

#urban, South 5frica* M&E "illion %#M $ilot

Bisasar ,oad
conversion of "ethane-to-electricity at environ"entallyracist to-ic du"$
5frica4s lar+est landfill $laced in black residential suburb =%lare !state? by a$artheidB "unici$ality refused to close it thanks to 2orld Bank ())( invest"ent hy$e* W& +rototype Carbon .!nd
emissions red!ctions credits

Sajida Khans family home

Sajida Khan =&6E(-())0?

thou+h felled by cancer fro" du"$, she had cohosted 3#urban Grou$ for %li"ate 'ustice4 =())N? and her challen+e to Bisasar "ethane flarin+ te"$orarily rebuffed 2orld Bank in ())E

pro,ect went ahead in =>>C even tho!gh D$Ws Aadditionality claim was a lieM

Concl!sion to re$ort by %entre for %ivil Society O #art"outh %olle+e for

@the system sho!ld be

decommissioned and at
minim!m, a moratori!m be placed on f!rther crediting !ntil the profo!nd str!ct!ral and implementation flaws are confronted/ The damage done by CDMs to date sho!ld be incl!ded in calc!lations of the Aclimate debt that the #orth owes the $o!th, with the aim of having victims of CDMs compensated appropriately/@

hel$in+ to "ake U 8%%% %#M $olicy* Halli Moosa

&isasar *d landfill was internally approved in early =>>>s when Moosa was $As environment ministerN Moosa sho!ld have fo!ght environmental racism by sh!tting &isasar *d and compensating victims, instead of approving CDM th!s 0eeping it openN Moosa then became chair of 's0om and was also r!ling partys .inance Committee member L acting Aimproperly %$A +!blic +rotectors office( when approving OC billion Med!pi coal"fired plant crony contract that rewards A#C P while 4itachi7A#C boilers will be delivered a year late, th!s threatening wave of power blac0o!tsN in addition to corr!ption and e8treme contrib!tions to climate change, 's0om also proposed Med!pi for CDMN Moosa is in conflict of interest in many respects and sho!ld not be permitted to chair or serve on any U#.CCC CDM +olicy Dialog!e panel
http://www.cdmpolic di!logue.org/p!nel

Moosa4s a$$roach unveiled in

$o!th Africas CDM +olicy

"ep!rtment o# $n%ironment!l A##!irs !nd &ourism
National Climate Change Response Strategy, Septem'er 200(

AEt sho!ld be !nderstood !p"front that CDM primarily presents a range of commercial opport!nities, both big and small/ This co!ld be a very important so!rce of foreign direct investment///

$A offers worlds cheapest electricity to metals smelters " phase"o!t neededM

's0om bragged in =>>F ann!al report, tho!gh as a res!lt, O?/=bn =>>F"?> lossesM

Major sites for neoliberal plus sustainable dev. discourses

UNFCCC

str!ct!ral problemnational self"interest at U# C5+s

ei+ht fatal flaws of carbon tradin+

inventin+ $ro$erty ri+ht to $ollute is effectively 3$rivati@in+ air4, a "oral dile""a +iven un$recedented ineFualityB G:Gs have non-linear i"$act, not reducible to co""odity e-chan+e =a tonne of %7( $roduced at 3P4 not sa"e as a tonne reduced at 3Q4?B the cor$orations "ost +uilty of $ollution, and the 2orld Bank ="ost res$onsible for fossil fuel financin+?, are the "arket4s drivin+ forces > and the United ations is !tterly incompetent at re+ulationB "any offsets > e;+; "onocultural ti"ber $lantations, forest 3$rotection4, landfill "ethane-electricity > devastate local co""unities and ecolo+iesB $rice of carbon in these "arkets is haywire, not least due to corru$tion, fraud and theft > with no $ros$ect of re+ulationB dan+erous $otential for "arkets to beco"e "ulti-trillion dollar s$eculative bubbles, si"ilar to other e-otic financial instru"entsB encoura+es s"all incre"ental shifts, distractin+ us fro" bi+ chan+es needed across econo"y, ener+y, trans$ort, consu"$tion, dis$osalB 3"arket solutions for "arket failure4 is not an a$$ro$riate ideolo+y after the world4s worst-ever financial "arket failure

)cin! M!*o'! on In!nd! !nd the origins o# ru''ish

ser%ice deli%er

S*ippers,!re we 'eing s*ipped or++

we !re to s*ip++

or it is the di%ision o# cl!ss,

-ho is p! ing the price,

$n%ironment !nd the poor

.i%ing in hope

/0-,,,,
%ollect Buy back centres