Investing in Carbon Credits

mr_fishbulb

We continue to receive many reports from people who have been approached by firms promoting carbon credits in the UK. Find out why you should be wary about investing in the carbon credit market.

http://www.fsa.gov.uk/consumerinformation/scamsandswindles/investment_scams/carbon_credit

gadgetmind

Scammers and spammers, flying in tight formation.

dave_burrows

These are not a scam i have invested and got great returns.

gadgetmind

dave_burrows wrote: »

These are not a scam i have invested and got great returns.

And I once won at "Find The Lady" on a street corner.

How did I do that do you ask?

Easy, I was the shill.

Reaper

dave_burrows wrote: »

These are not a scam i have invested and got great returns.

So Dave. You arrived at work this morning and were suddenly filled with the urge to search the internet for anybody who might be discussing an investment you made. Having found one you took the trouble to register with the site and say how great they are.

I'm sure the company will be overjoyed at the trouble you went to and none of us will find it even slightly suspicious, even though several other first time posters did exactly the same thing earlier and had their posts deleted as suspected spam.

gadgetmind

Here's what happens to people who invest in carbon credits.

http://www.thisismoney.co.uk/money/experts/article-2210464/TONY-HETHERINGTON-Our-home-risk-carbon-credit-cowboy.html

Jegersmart

marc3 wrote: »

Apologies where this may have been covered elsewhere.

I know nothing about this subject-but like a small gamble and to do something a bit out of the box-and wondered whether a small investment in carbon credits is worth a go.

Has anybody any good/bad experience of this .

frankly-i don't understand how it works-and probably don't really need to;although if someone could recommend a 2/3 page article that i could read in five minutes and turn myself into a world expert on the subject that would also be appreciated.

I think general idea is that you buy 'carbon credits' which are predicted to increase in value.
I think you buy about 1000 carbon credits at a time.

Where do i find out roughly what todays value of 1000 carbon credits are ?
i.e-how much am i likely to have to invest to make it possibly worthwhile ?

As you can see-i do know nothing -so any pointers in the right direction -and whether it may be worth a bit of a speculation would help
(or has anyone had real success-or caught a bad cold on this ?)

I should perhaps add that i know there are quite a few scams out there;and whilst i'm not completely impervious to that; i do carefully vet/due diligence on any broker acting for me--so at this stage can we assume that i would be dealing with a bona fide company -(accepting that for every one proper firm there are about 10 bogus companies )'so if anyone is able to provide any input on this-assume at this stage that it is via a proper investment broker-and i have not been approached-just looking to diversify and educate myself a bit initially

many thanks

Marc3

I can only say that your attitude is absolutely the worst to have in terms of investing or speculating and this is why:

1. You don't know anything about what you are looking to speculate in.
2. You can't be bothered to learn to see if the "investment" is actually viable.
3. You don't know where you can find prices of EUA/CER's.
4. You don't know whether you can even access this market.

You might as well go down to the bookies as far as I can see.....

I don't mean offence but really this sort of thing makes me very worried for some people.....

J

Reaper

gadgetmind wrote: »

Here's what happens to people who invest in carbon credits.

http://www.thisismoney.co.uk/money/experts/article-2210464/TONY-HETHERINGTON-Our-home-risk-carbon-credit-cowboy.html

I see in the article it says:

We agreed to invest £52,500 at £15 per credit and were assured we would see a return within eight weeks by selling our credits at £20 each

So a claimed 33% profit in just 8 weeks. It makes you wonder what it takes to make alarm bells ring in some peoples heads.

gadgetmind

Reaper wrote: »

It makes you wonder what it takes to make alarm bells ring in some peoples heads.

What worries me is how hard it is to convince some people that they are in the process of being suckered into a scam, and how they seem to find "Don't worry, they is good company, I got my paid" from zero previous posters to be some kind of comfort.

Browntrout_2

There is an ETF available, actually it is an ETC traded on LSE.

I have traded it but have found it to be a gamble with no reason I can figure for it's movements.

It has gone from highs around £15 to circa £5 in the last four years, does this mean it is value now, or is it ultimately worthless as the whole green trading thing is an EU scam, who knows?



http://www.etfsecurities.com/osl/etfs_carbon_gb.asp

ETFS Carbon (CARP) is designed to track the price of carbon emissions allowance futures and offers investors a "total return". CARP tracks the ICE ECX EUA Futures Contract traded in London on the ICE Futures Market - currently the most liquid exchange traded contract within the EU Emissions Trading Scheme ("EU ETS").


Safety and Structure

ETCs issued by ETFS Oil Securities Ltd. are backed by energy contracts purchased from Shell Trading Switzerland, who provide the oil exposure for these ETCs. The ETCs issued by ETFS Oil Securities Ltd are not collateralised nor backed by physical oil.