_Unless_ they increase the profitability of zero/negative net CO2 emitting actions. It could be the case that REC are so badly designed and administered that they do not in fact create any additional incentive for shift from net CO2 emitting to net zero or negative CO2 emitting. Maybe Lynn could investigate that and suggest improvements in the scheme.
And maybe indulgences in the Middle Ages were sold too cheaply to optimally deter sin. Popes are not necessarily good economists.
Yes, when you actually calculate the cost of the underlying energy (which is what is required for utility reporting in compliance markets), you see how the game really works!
Thanks for demystifying "REC's" with excellent communications skills too, I think understandable for anyone who is interested in learning the true facts
This is a wonderful clear and concise explanation of REC's . Certainly cleared up a few points for me! And I love ... "If there’s one thing consistent about human nature, it’s that any loophole opened by bad policy will ultimately be exploited." Seems today's actors in this space are so green they just slim their way through any little orifice to get what they want.
I'm still in shock and awe that 1 Bitcoin company got $125 million from ERCOT customers during URI, while people died, and we will be paying on our bills for years to come from that boondoggle! Now that's a pretty big loophole to abuse and they do it every time we have an issue on the grid, which means pretty regular.
Your quote, "If there’s one thing consistent about human nature, it’s that any loophole opened by bad policy will ultimately be exploited." is spot-on. The REC system is bad policy. You provide a clear example of how inexpensive it is to purchase unbundled RECs for bragging rights.
And not one bit of any of this reduces GHGs, but it does make many manipulators quite wealthy.
When Cap and Trade was introduced a dozen or so years ago, I was amazed at how many people thought it good policy. All one had to do was ask, "How does paying a tax to the state, reduce emissions?"
I am fully on board with the idea that all of this climate manipulation, is just as much of a scam to milk money into the accounts of the wealthy as is Covid, Ukraine, Obamacare, and many more.
" they [RECs] do nothing to reduce overall GHGs"
_Unless_ they increase the profitability of zero/negative net CO2 emitting actions. It could be the case that REC are so badly designed and administered that they do not in fact create any additional incentive for shift from net CO2 emitting to net zero or negative CO2 emitting. Maybe Lynn could investigate that and suggest improvements in the scheme.
And maybe indulgences in the Middle Ages were sold too cheaply to optimally deter sin. Popes are not necessarily good economists.
But look how expensive are RECs in compliance markets! Here's real trading data. https://www.srectrade.com/markets/rps/srec/massachusetts
Yes, when you actually calculate the cost of the underlying energy (which is what is required for utility reporting in compliance markets), you see how the game really works!
Thanks for demystifying "REC's" with excellent communications skills too, I think understandable for anyone who is interested in learning the true facts
Thanks, Dick!
This is a wonderful clear and concise explanation of REC's . Certainly cleared up a few points for me! And I love ... "If there’s one thing consistent about human nature, it’s that any loophole opened by bad policy will ultimately be exploited." Seems today's actors in this space are so green they just slim their way through any little orifice to get what they want.
I'm still in shock and awe that 1 Bitcoin company got $125 million from ERCOT customers during URI, while people died, and we will be paying on our bills for years to come from that boondoggle! Now that's a pretty big loophole to abuse and they do it every time we have an issue on the grid, which means pretty regular.
Thanks, JF! That ERCOT anecdote is disgusting.
Your quote, "If there’s one thing consistent about human nature, it’s that any loophole opened by bad policy will ultimately be exploited." is spot-on. The REC system is bad policy. You provide a clear example of how inexpensive it is to purchase unbundled RECs for bragging rights.
Thanks, Gene!
Thanks. I have been dubious about RECs and you clearly explained how they are of little value.
Thanks for reading - glad you enjoyed the article!
And not one bit of any of this reduces GHGs, but it does make many manipulators quite wealthy.
When Cap and Trade was introduced a dozen or so years ago, I was amazed at how many people thought it good policy. All one had to do was ask, "How does paying a tax to the state, reduce emissions?"
I am fully on board with the idea that all of this climate manipulation, is just as much of a scam to milk money into the accounts of the wealthy as is Covid, Ukraine, Obamacare, and many more.
Thanks for your comment! Cap and Trade is definitely another boondoggle, oh boy.