Opinion

Selling Doomsday Debits

In BC's wasteful forest biz, carbon credits don't grow on trees.

By David Beers, 24 Jul 2007, TheTyee.ca

The terminator and gordo

Salesmen: Arnold and Gordo.

California's Governator and British Columbia's premier wish to offer you an opportunity to fight global warming. They'd like you to invest in B.C.'s forest industry.

But one expert who's read the fine print is warning us not to get played for chumps.

At issue is the hot idea of carbon credits. To counter global warming, governments would set caps on allowable greenhouse emissions, and punish companies that exceed those levels unless they "offset" their pollution by buying carbon credits -- investments in other industries and practices that reduce greenhouse gases.

You yourself could get in on this. If the size of your own carbon footprint has you feeling guilty, you could buy carbon credits along with, say, your next airline tickets.

What's needed is a formal marketplace, preferably close to home. Which is what Governor Arnold Schwarzenegger and B.C. Premier Gordon Campbell recently proposed, a market linking B.C. with California and four other western states allowing individuals to purchase bona fide, climate-friendly carbon credits.

Who would benefit? Among others, B.C. timber firms, who "may be able to generate significant revenues out of proper management of the forest," enthused Premier Campbell. The logic in this is that trees are our friends because they pull carbon out of the air and store it. Forest companies plant and grow trees. Invest in B.C. forests ... climate guilt absolved!

Well, keep your hand on your wallet.

Record logging, huge waste

Ben Parfitt, a veteran journalist and researcher on forestry, has been studying B.C. timber industry practices for the Canadian Centre for Policy Alternatives. He finds the province is encouraging timber firms to cut corners in their rush to harvest pine beetle infested wood. "Industry at government's urging is trying to log as many dead trees as possible, and a lot of living ones too. With record logging activity comes escalating levels of wood waste," he told me. Last year, according to analysis of government data, logging firms left about 4.2 million cubic metres of usable wood on the ground (one cubic metre equals one telephone pole). "Most of that gets pushed into giant piles and burned. The rest is left to rot," Parfitt says.

What's the problem with that?

"If those logs had been turned into solid wood products, like framing, all that carbon -- up to 3.8 million tons -- would have been locked up for up to a century." But whenever a tree burns or decays, the carbon it stored is released back into the atmosphere.

So harvesting timber in this wasteful way, calculates Parfitt, may be upping B.C.'s total greenhouse emissions by 7 per cent.

'Massive eco-system shift'

If the next several decades are do or die for halting emissions, this is the worst possible moment to be vaporizing wood. An industry run like this, notes Parfitt, is selling not carbon credits, but doomsday debits.

Some people will say that mismanagement or not, the real culprit is the voracious pine beetle. If the bug wasn't prematurely killing so many trees, we wouldn't have to hurry so fast to harvest them. You'll get no argument from Parfitt, who says the rest of Canada should be looking to B.C. for a grim glimpse of the future.

Thanks to global warming, fire suppression and monoculture forest management, the pine beetle and its cousins may well chew their away across Canada. The jack pine so common in Canada's boreal forest may fall victim, causing forest fires and soil erosion to accelerate and wiping out long term carbon sequestration provided by the swath of forest across our northern crescent.

"Across Canada a massive eco-system shift is already underway," Parfitt concludes, based on Canadian Forest Service studies.

Scary. But doesn't that still mean every tree planted in B.C. is a good thing, and people should earn carbon credits for helping to pay for it?

Yes, says Parfitt, as long as the accounting is rigorous. And right now, he says, it's anything but.

Check the books

Investing in B.C. forestry won't yield true carbon credits, Parfitt says, unless we plant the right mix of beetle resistant tree species, in numbers high enough to replace not only the wood used, but any waste left behind by the bug wood harvesters.

And we won't truly know the books are in balance, he says, until the province hires many more inspectors to accurately gauge wood waste levels. Right now not even one in ten mountains of wasted logs are eyeballed by an actual government employee, Parfitt says.

Recall that Premier Campbell, in vowing that carbon credits could enrich B.C.'s timber industry, did emphasize the scheme was tied to "proper management of the forest."

Ben Parfitt agrees, but says we're not even close yet. If you were to buy a carbon credit investment in B.C. forestry today, you'd be played for a chump.

Related Tyee stories:

 [Tyee]

39  Comments:

Login or register to post comments

  • HawkEyes

    4 years ago

    Good read...

    for a difficult subject ...

  • clubofrome

    4 years ago

    Do or die...

    David, could you clarify that do or die statement please.

    Quote:
    If the next several decades are do or die for halting emissions, this is the worst possible moment to be vaporizing wood. An industry run like this, notes Parfitt, is selling not carbon credits, but doomsday debits.

    While we should not dispute that carbon emmisions are contributing to the problem we need to connect the dots with other activities that have also contributed harmful effects. Below the surface of climate change are still unanswered questions. Human impact on lanscapes could be as big or bigger contributors to climate change. While emmisions are harmful, they may be but a drop in the bucket compared to urbanization and agricultural development. Dams, water diversion, and overdevelopment have caused serious damage to natural cycles including how nutrients find there way to the sea. Most of the worlds large rivers now deposit more chemicals than needed nutrients and damage can now be seen in places like the great barrier reef, and the decline of fish stocks worldwide. Also the rising level of toxins in the sediments and wildlife that inhabit these once diverse and importnat delta environments. While nations debate allowable catch and farms turn into factories, we are not promoting an environment for these over taxed systems to recover from the abuse. It has been said that the worlds 5,000 or so dams may be as big a factor in climate change as carbon emmisions. Clearly human development must alter it's path if we are to lower our collective foot print. Carbon credits sound like something an acountant dreamed up while he was daydreaming about becoming a lion tamer...

  • Jim Van Rassel

    4 years ago

    Debits and Credits

    Debits and credits? Doing the math, when it comes to our survival, is in my opinion ridiculous. Doing what is right, as far as polluting goes, shouldn't require a PHD or a super computer.
    The only two obstacles standing in humanity's way are politics and monetary greed.
    Doing some research on this I ran into a little story which has huge repercussions.

    BEIJING-- China's attempts to project a new "green" image suffered a serious blow yesterday when it was revealed that an attempt to estimate the environmental cost of its runaway economic growth has been put on HOLD INDEFINITELY. Scientists given the task of making the calculations said the project had been killed off by political opposition.

    You see one of the most important disciplines taught in China is Math, and the numbers didn't add up as you can see.
    Politics and greed,,Need I say more?

    Jim Van Rassel
    604-328-5398

  • David Beers

    4 years ago

    Administrator

    Club of Rome

    You asked me to clarify the 'do or die' statement. I'm noting that the scientific consensus is that if greenhouse gas-driven global warming continues at its current rate, the result will be an acceleration of global warming's effects. The challenge, as I read the reports, is to curtail emissions -- and any other contributors to global warming under human control -- as fast as possible. In which case, why would you encourage citizens to invest in 'carbon credits' that underwrite a forest industry that is wastefully ADDING to emissions rather than planting more trees than it harvests, and turning what trees it does harvest into materials that store carbon? Hope that helps.

  • Grumpy

    4 years ago

    A ponsie scheme

    Carbon credits and trading of carbon credits must e one of the greatest ponsie schemes ever created. Good God, anyone with a modicum of intelligence can see how easy it would be to fiddle these.

    If you want to reduce carbon emissions, you must stop using oil. Simple old chums. All this nonsense of trading carbon credits will help no one except the masses of bureaucrats needed to run such an operation.

    Want to cut carbon emissions? Drive less; eat less; stop buying Mickey D's; demand a proper regional transit system from your politicians, etc.

    Why am I not holding my breath for any real change?

  • BC Mary

    4 years ago

    What is a Micky D?

    Just so I don't accidentally buy one, Grumpy.

  • snert

    4 years ago

    As Usual

    As usual the whiners and blamers spout their standard fare.

    Quote:
    Politics and greed,,Need I say more?

    Try making it part of the solution.

    That being said there are numerous ways to approach the solution that will help but tradeable or saleable carbon credits are not and should not be among them. Just plain smoke and mirrors.

    If you have an industry with high energy consumption give it a better incentive in the form of tax breaks or research grants to reduce it's consumption. At the same time protect these industries against unfair competition from companies that do participate in carbon trading.

  • Birch

    4 years ago

    Inertia

    The snowball of western civilization has been rolling down the mountain, gathering size (and further momentum) for a considerable time now. Asking it to stop, especially of its own accord, is almost laughable.

    As a species, our forte has been to find strategies and behaviors that improve our short-term survival at the expense of EVERYTHING ELSE, including our own future. Abandoning one's own strategic advantage is the last action to expect of any competitor (species or otherwise).

    It's difficult to imagine ANY proposal put forward by anti-"girlyman" Schwarzenegger and our own Gordo that wouldn't fall right into the business-as-usual formats that have ruled our societies since their inceptions.

    If there are trees to cut, we'll cut them. If we can get away with waste, however monumental, we'll waste. If so-called "free" markets can be unleashed with all their objective power, to save the planet AND MAKE MONEY at the same time, we'll buy in. Besides, there are suckers born every minute, ain't that so??

    Good luck to us all.

  • G West

    4 years ago

    Au contraire

    Quote:
    If you have an industry with high energy consumption give it a better incentive in the form of tax breaks or research grants to reduce it's consumption.

    Tax breaks and research grants got us here they won't solve the problem - in fact, the masters of the universe will just find more ways to fiddle the system and feed the bottom line. What's needed is exactly the opposite - tax the polluters until they can't afford to pollute anymore and use the proceeds (until they cry uncle and get out of business or get their act in order) to build reliable mass transit and affordable housing close to where people work.

    How anyone thinks carbon credits and economic flim-flam will solve these problems just hasn't been paying attention. China is one of the main exhibits for the prosecution – businesses there are more than prepared to put lead paint on children’s toys and to sweeten medicine and toothpaste with antifreeze…don’t look for any leadership from China…Oh and India’s supposed ‘green revolution’ – better have another close look at that too my friend.

    If anyone tells you they're going to turn green practices into more profits for their shareholders, it's time to check your wallet. This is going to cost a lot of money and we’re all going to have to take a hit if we want to survive. Oh, and about Gordon’s friend Arnold, don’t listen to anyone with more than 4 ‘Hummers’ either.

  • snert

    4 years ago

    Au contraire Au contraire

    No reason performance based tax breaks couldn't work.

  • G West

    4 years ago

    Just Greed - that's all that's necessary

    As long as the kind of accounting procedures and management attitudes that get all kinds of businesses in trouble now are the rule and not the exception, there is absolutely no reason to believe that any measures of performance provided by the firms involved will be accurate and truthful.

    Consequently, the necessity for an army of independent government appointed monitors.

    We can't rely on the beef industry to police food inspections; the poultry industry not to take advantage of cruelty laws, the car industry to produce safe vehicles...in fact, you can't rely on commerce to do anything BUT cheat and cut corners. Therefore, tax the polluters and keep taxing them until they clean up their act. Incentives are simply a way for management to skim the cream off the top.

    They won't work and in fact will simply make things worse. The coming crisis is the moral equivalent of war and must be fought accordingly.

    I trust you’re following the mortgage meltdown in the United States and are aware of the facts surrounding the extension of the crisis into ordinary mortgages and not just the sub-prime category.

  • snert

    4 years ago

    And you know what will work?

    Quote:
    They won't work and in fact will simply make things worse. The coming crisis is the moral equivalent of war and must be fought accordingly.

  • Grumpy

    4 years ago

    Micky D?

    The clown's drive in! McDonalds. We could cut carbon emissions by eating less at all fast food drive-ins. Try just once a week!

  • Fiat lux

    4 years ago

    If you give more "tax

    If you give more "tax incentives" to the forest industry, they'll just account it as bigger profits. I live in the midst of this devastation and can see what's going on.

    What nobody mentions is that all this worldwide devastation is caused by the deregulated money creation powers of banks.

    That imaginary, junk money, created from the air, demands conversion into resources, transferring the responsibility of maintaining its perceived value on the public, with the governments lying on their backs, begging the masters of the world to scratch their bellies.

    The coming SPP summit will be the prime example of governments handing over democracy into the hands of big business fascism.

    When banks were deregulated, money became a licence to control energy, issued by a special interest sector for its own benefit.

    Until this power is removed and taken back under strict, democratic control, with full accountability to the public, the situation will only worsen, because every day more of this licence is "created" to destroy Earth.

    Ed Deak.

  • snert

    4 years ago

    It's really simple people.

    No pain, no gain.

    If you cannot show the results you don't get the break. Nothing complicated about it. If your competition gets results and you don't too bad.

    That being said if the competitions process can be licensed it must be made available for a price of course.

    These tax breaks can cover reductions in greenhouse gases and/or a reduction in energy consumption.

    These changes are going to have a cost no matter which way they are they are done. I think you can still catch more flies with honey though?

  • clubofrome

    4 years ago

    Clarity

    Thanks for the clarification David Beers. I think we're saying the same thing, but I will also add, as I have before, that the term global warming is one that ought to be redefined. I like climate change. Or environmental change, or better still ECOLOGICAL COLLAPSE! Global warming and carbon emissions now walk hand in hand forever married in the public eye. Just like progress = growth, and we vote, ergo we live in a democracy. It's hard enough to get issues like this in front of the MSM, and then they only want the visuals of polar bears and melting glaciers crashing into the ocean. As with most issues you get to see the symptoms not the illness or the problem. Tying carbon emissions to the solution of glogal warming will not solve the problem. In some cases in will worsen with the manufacture of ethanol from corn. This translates to less food to eat but fortunately only for those who can't afford delicious farm fresh salmon....

    Birch sums it up nicely. We don't plan for the future. When you fail to plan... you plan to fail. EOFS. So while not expected, it would be ..."refreshing" to see some truth in the media. Old fashioned journalism, facts and then opinions for and against. Fact 1: Carbon emissions are not the driving force behind climate change and global warming. They are a factor and the rest of the story needs to be told. We need to understand that this obvious challenge to man is more attributed to our overdevelopment, building in flood plains, below sea level and then expecting not to move ever again. By altering the natural flow of water we change the ecology that we depend on. I'm also talking about the scale of global development as it sits today, not 500 years ago when you could just sail away and discover a new continent. We're out of room to run. We need to define sustainability and put a number to it, Human numbers, at a reasonable level of comfort and commerce. The fact it's getting warmer is a problem because it changes our ecomomy. It will mean mass evacuation of low lying area's. It will cost money! So when will this aharp as a tack type accountants start to admit that there is no such thing as economy without ecology. Those are two things that do walk hand in hand. Right now they're strolling arm and arm, over on extinction alley... Fact 2: We passed sustainable for this type of economic behavior almost 100 years ago. Fact 3: Collapse will happen only the timeline is TBA.

    Now if these facts were taught in school, along with Ed'd economics, then maybe we'd start to see a change in behavior. But as my buddy G West, has said so many times before, you can forget any leadership from big business or government. So might as well park your tax incentive idea's along with your carbon credits style solutions. We want the truth! Can we handle the truth?

  • snert

    4 years ago

    Eliminate GST on new cars

    From the glob & mire

  • G West

    4 years ago

    Baloney

    Just more Neil Reynolds Pro-business bumpf. Exactly the opposite of what should happen - double the GST on all cars that get poorer than 6 litres/100 km and if that doesn't change peoples' buying choices double it again.

    You think the people driving the old clunkers are doing it to save the GST? Give me a break - the working and the working poor can't afford new vehicles - they can barely afford the ones they have now.

    Eliminate accelerated depreciation on vehicles while you're at it and don't allow lease payments as business expenses and then you'd be doing something to get gas guzzlers and wasteful drivers off the roads.

    Pandering to business and commercial interests has gotten us into the mess - continuing to do it won't help get the country and the environment out of it.

    Time to wake up and place responsibility where it belongs.

  • snert

    4 years ago

    We could do a lot of things.

    Like make it so everyone has to walk to work. That'll put the responsibility where it belongs as well.

    BTW What useful proposals do you have for all the extra money you have the government collecting? And further, how do you think they will waste it?

  • clubofrome

    4 years ago

    Right On G!

    EDITED FOR PERSONAL INSULTS OF ANOTHER COMMENTER. A LIVELY DEBATE IS WELCOME HERE, BUT NOT TAUNTS AND INSULTS. -TYEE EDITOR

  • G West

    4 years ago

    Walking to work

    Walking to work is an excellent idea. So is the revolutionary concept of affordable communities and small, local businesses.

    Working together with a government that cared for change and not its friends on Howe Street and in Pt Grey a lot could still be done.

    Soon though, especially given the attitudes of a lot of people who don't realize they are victims too, it will be too late.

  • clubofrome

    4 years ago

    Apology

    Sorry snert. What I meant to say was you can't believe everything you read...

  • snert

    4 years ago

    Affordable communities.

    G West

    I live in an 'affordable community' of single family homes on nice sized lots. You won't catch me moving in to some rabbit warren of a community just so I can walk to work, not in this lifetime anyhow.

  • G West

    4 years ago

    I'm not surprised

    Your more or less complete lack of understanding of the magnitude of the real problems you 'think' can be solved by tax effects carrots shows it.

    And your characterization of a livable community for the people who frequently can't afford to pay rent for decent accommodation as a 'rabbit warren' speaks volumes about your disconnect from a reality the majority of people and about 80% of today’s young families actually contend with.

    You might try to show a little empathy for those who aren't as fortunate to live as 'affordably' as you are apparently able to do: Often times accidents of birth and geography separate people in ways that tend to disguise our shared humanity.

    In fact, that's precisely what's wrong with the Campbell Government's approach.

  • snert

    4 years ago

    Rabbit warrens

    G West

    So you admit that all you are concerned with is low income 'affordable communities'. I'm afraid I wasn't referring to them at all. Any apartment building, condo, etc. is a rabbit warren in my opinion.

  • clubofrome

    4 years ago

    Crash and burn...

    In this new era of comment conduct, it's rare to see this type of implosion the way someone like maestro self destructed. While trying to disguise themselves as opinion, the veneer on these basic baiting tactics is still as transparent as before... It's hard to turn the other way isn't it G.

  • G West

    4 years ago

    Did you not see the 80% reference

    Did you not see the 80%?

    Your attitude toward most of your fellow human beings - based on your own words - is, I'm afraid, hard to call anything but sad.

    If you don't realize that 80% of the population includes an enormous chunk (if not all) of the so-called middle class and that my remarks have never just addressed so called 'low income' people then you haven't been reading very carefully.

    I suggest you do that instead of trying to drop bon mots and other snide remarks into conversations and debates you have obviously made no sincere attempt to understand.

    Have you ever wondered why so many of your interlocutors respond with animosity to your 'contributions'?

    It is hardly surprising that someone with no better fortune than to be forced to live in accommodation you find to be only appropriate as a home for rabbits might be angered by your purblindness and apparent contempt for the lives and problems hopes and dreams of others.

    Especially since the proceeds of this government's irresponsibility inures to a few friends and foreign investors rather than the citizens of the province.

    You, by your own words, are condemned as a believer in the 'I'm all right Jack' school of political analysis practiced at the Fraser Institute and by Neil Reynolds and Marcus Gee at the Globe and Mail, among other places. I can think of several sites where you'd be right at home. Here, sadly, you are doomed to be the object of derision – not all of it as polite and carefully crafted as I’ve tried to make this.

  • clubofrome

    4 years ago

    That was eerie!

    G, we must one day clink glasses of foaming golden liquid!

  • snert

    4 years ago

    Nope

    G West

    Quote:
    Have you ever wondered why so many of your interlocutors respond with animosity to your 'contributions'?

    They are predictable for the most part. Can't say any more without getting edited.

  • G West

    4 years ago

    I'll be in the lower mainland at least one weekend

    in August club!

    Drop me a line at

    Maybe we can shake Frank loose for a beer too.

    Truly eerie

  • snert

    4 years ago

    Bin there, done that

    G West

    Quote:
    It is hardly surprising that someone with no better fortune than to be forced to live in accommodation you find to be only appropriate as a home for rabbits might be angered by your purblindness and apparent contempt for the lives and problems hopes and dreams of others.

    Sob!

    Oh, there's also lots of people that live in those places by choice. Did you forget them. Kind of an 'inconvenient truth' though.

  • G West

    4 years ago

    Yes that's right!

    People live in "rabbit warrens" by 'choice'. Guess that makes 'you' feel a lot better about your prejudices eh?

    The only truth is that you really are a piece of work snert.

    I should have just ignored you as I usually do.

  • snert

    4 years ago

    You're not paying attention.

    G West

    No sense of humour.

    I don't like apartments or condos no matter who lives in them. You took the hyperbole and ran with it, not me.

    You can't resist and you know why.

  • G West

    4 years ago

    You rationalize it as it pleases you

    I don't think the meaning behind these words is hyperbolic at all:

    Quote:
    I live in an 'affordable community' of single family homes on nice sized lots. You won't catch me moving in to some rabbit warren of a community just so I can walk to work, not in this lifetime anyhow.

    In fact, I think it reveals quite precisely the character of the individual who wrote the words, unbidden and unsolicited, of his or her own free will.

  • snert

    4 years ago

    You're entitled to your own opinion

    Quote:
    I think it reveals quite precisely the character of the individual who wrote the words, unbidden and unsolicited, of his or her own free will.

    And I won't belittle you for it.

    Hyperbole it was. You ran with it. Think what you will and you are what you think.

  • zalm

    4 years ago

    You are what you think?

    Quote:
    If you have an industry with high energy consumption give it a better incentive in the form of tax breaks or research grants to reduce it's consumption. At the same time protect these industries against unfair competition from companies that do participate in carbon trading.

    If you really think this, I'd recommend you study economics some more. This is a recipe for market failure. Some might argue the market failure has already occurred and we are merely arguing over how best to deal with the externalities - perhaps they're right.

    Respectfully, I suggest you ought to study a lot more economics - you have no idea how almost everything you've said in this long thread demonstrates your lack of understanding of utility vs public good.

    Your chosen way of life off-loads a lot of externalities onto the rest of society and when someone tries to point it out, you react like a spoiled brat. I liked you better when you were talking about politicians.

  • snert

    4 years ago

    Does it make any difference if you read the whole thread.

    zalm

    The tax breaks should be results based. I made that point in a later comment. Research grants could be handed out if a reasonable chance of success in achieving significant results is foreseeable.

    This was my suggestion as I see no significant benefit to the use of "carbon credits". I see them as nothing but smoke and mirrors.

    Outside of being repetitive I think you have just provided you're own antithesis. What I suggested may or may not work but to be pooh poohed by the followers of conventional wisdom (whom you admit may or may not have gotten us in this mess) when the critic can't even come up with a substantive argument against the idea is ludicrous.

    Your reply is a very good case in point, a couple of nebulous criticisms punctuated by a personal attack. The later, however, is the trademark of a losers, bullies or the insecure. I leave you to decide into which category you fit, if any.

    I am not an expert nor do I purport to be one and I am not aware that this is a qualification to post to Tyee.

    FWI worth, I think that the argument "utility vs. public good" as you use it can be very subjective, arbitrary and open to political manipulation.

    As far as "my way of life" is concerned I'm afraid the attitudes that are professed by some in this forum regarding how the future should, in their opinions, unfold leaves lots to be desired. "utility vs. public good" can also be synonymous with reduced quality of life, in my opinion, hence the hyperbole.

  • clubofrome

    4 years ago

    Just let it out...

    Common snert, it's just what the doctor ordered. Let it out, let your emotions go. Try and admit you are as confused as the rest of us! Actually more so, since you can't tell the difference between science and science fiction! No one knows the future, it's only caution you're hearing. Also once you've stuck your foot in your mouth, just apologize like a real human, it feels good to admit you made a mistake and then move on. If you can't do that then like G West says, you'll be ignored, at least by me. And don't pretend you haven't tried to bait me in the past. If your going to dish it be prepared to take it... otherwise beat it.

  • snert

    4 years ago

    Knickers in a knot

    clubofrome

    Quote:
    you'll be ignored, at least by me.

    You've made that remark before. I shudder at the thought.

    • The discussion for this story is closed. No more comments can be added.