Ethically Bankrupt: World Bank Defense of the HFC-23 Scandal

The document argues that the World Bank is defending HFC-23 incineration projects in China that manipulate production to maximize the generation of 'fake' carbon credits. It highlights evidence that manufacturers increase HFC-23 waste production specifically to earn Certified Emission Reductions (CERs) and criticizes the World Bank for ignoring findings from the CDM Methodologies Panel and the Montreal Protocol's TEAP. It notes that the UN CDM Executive Board has launched investigations into six such projects, including the delay of over 3 million CERs for the Changshu Zonghao project.

• The World Bank's Umbrella Carbon Facility invested in two HFC-23 incineration projects in China—Jiangsu Meilan Chemical Co. Ltd. and Changshu 3F Zhonghao New Chemicals Material Co. Ltd.—contracting to purchase nearly 130 million CERs valued at 775 million Euros (US $ 980 million) in 2006.
• Evidence suggests that HCFC-22 manufacturers manipulate operations to increase HFC-23 generation to maximize the acquisition of carbon credits, leading to the creation of 'fake' or 'phony' credits.
• The World Bank's public Q&A defending the HFC-23 Destruction Methodology is accused of using false or misleading information and ignoring evidence from the CDM Methodologies Panel and the Montreal Protocol’s Technical and Economic Assessment Panel (TEAP).
• The UN CDM Executive Board has initiated investigations into six HFC-23 CDM projects, questioning the issuance of over 9 million CERs, including a specific delay of 3,260,020 CERs for the Changshu Zonghao project as of August 18, 2010.

APA

CMW (2010). Ethically Bankrupt: World Bank Defense of the HFC-23 Scandal. Carbon Market Watch. https://carbonmarketwatch.org/2010/08/31/ethically-bankrupt-world-bank-defense-of-the-hfc-23-scandal/

Chicago

CMW. Ethically Bankrupt: World Bank Defense of the HFC-23 Scandal. Carbon Market Watch, 2010. https://carbonmarketwatch.org/2010/08/31/ethically-bankrupt-world-bank-defense-of-the-hfc-23-scandal/.

Wikipedia

{{cite press release |last1=CMW |title=Ethically Bankrupt: World Bank Defense of the HFC-23 Scandal |publisher=Carbon Market Watch |date=31 August 2010 |url=https://carbonmarketwatch.org/2010/08/31/ethically-bankrupt-world-bank-defense-of-the-hfc-23-scandal/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{cmw2010ethically, author = {CMW}, title = {{Ethically Bankrupt: World Bank Defense of the HFC-23 Scandal}}, publisher = {Carbon Market Watch}, year = {2010}, month = aug, url = {https://carbonmarketwatch.org/2010/08/31/ethically-bankrupt-world-bank-defense-of-the-hfc-23-scandal/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }