European carbon market suspended over fraud fears

Telegraph (UK) ^ | Thursday 20 January 2011 | Rowena Mason

[Ernest_at_the_Beach]

The European carbon market has been thrown into turmoil after the scandal-hit scheme was suspended for a week over suspicions of fraud.

More than €2bn (£1.7bn) of trade is likely to be disrupted after the European Commission said it would prevent transactions until January 26.

The suspension follows allegations that 475,000 carbon credits worth €7m were stolen in a hacking attack on the Czech carbon register. It appears that the intangible allowances were bounced between eastern European countries before disappearing without a trace.

France's Bluenext exchange was the first to close its platform, while Austria, Poland, Estonia and Greece also shut their registries for trade.

This is not the first challenge to the credibility of the €90bn annual market in carbon allowances

Under the flagship scheme, companies need permits to emit carbon dioxide as part of the global fight against climate change and polluters are granted a certain number of emissions allowances that can be traded.

[JPG]

The EU is about to go teats up and instead of pursuing rational fiscal policies, they are all screwed up with selling air. Stop the bleeding first.

[TASMANIANRED]

I want to open a hydrogen market..

[T. P. Pole]

Wow, I read that as “European caribou market” and opened it just to see what that could ever mean.

[Marine_Uncle]

Criminals stealing from criminals. What a deal.

[azhenfud]

Fraud?

You’re kidding!

[TigersEye]

Ha! That’s like Robert Redford suspecting Paul Newman of a double cross in The Sting. A fraud within a fraud. LOL

[SunkenCiv]

additional:

• Hackers steal 2 million tonnes of EU carbon credits