Yesterday the Financial Times reported on accusations that the British Department for Environment, Food and Rural Affairs (DEFRA) has encouraged British companies to purchase carbon dioxide emission credits that do not actually produce carbon reductions.

The first charge against Defra is that under a proposed code of practice, it has been advising businesses and consumers wishing to offset their emissions to buy carbon credits through the European Union or UN carbon trading scheme. However, phase one of the scheme was discredited last May for flooding the market with too many permits to achieve any emissions cuts.

With so many carbon trading schemes on the market, many British companies were keen to follow official advice. However, the result is that many were persuaded to buy environmentally worthless carbon credits.