T.D.writes: I invested in carbon credits that I bought from MH Carbon Limited, after the company told me that businesses buy these credits. Mine were supposed to be sold in October.
When October came I was told that while I stood to make a 20 per cent profit, if I waited until November this would rise to 25 per cent. It seemed sensible to wait, but then in November, MH Carbon told me no one was buying.
The company added that in April the Government would be introducing legislation that would force businesses to buy carbon credits or face heavy fines. I invested all my savings, so now I am extremely worried.
I have yet to see any ordinary investor make a penny from trading in carbon credits, and I am afraid you are not going to be the first – though I do have some good news for you.
MH Carbon, based in the City of London, is run by its sole director Jeffrey Razaq, so I asked him whether it was true you were first told your credits were showing a 20 per cent profit, with a promise of more to come, yet suddenly they could not be sold at all.
He told me he had bought the company on November 14 last year, and that the broker who dealt with you had already left by then. There was no record of what you had been told, he said.
Well, I asked, what about the idea that the Government was going to force companies to buy carbon credits from investors like you? Razaq came up with an announcement made last June, but he had the honesty to admit that all this does is make major companies report their greenhouse gas emissions. By no stretch of the imagination does it force them to buy credits.