From the Telegraph: European carbon market suspended over fraud fears
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.
“Although such incidents are negligible in terms of actual market impact, they will over time undermine the credibility of carbon trading as a policy measure to reduce emissions in Europe. Immediate actions to improve the security of EU registries are thus needed.”
Full story at the Telegraph here
“It appears that the intangible allowances were bounced between eastern European countries before disappearing without a trace.”
How can something intangible disappear when it doesn’t exist in the first place?
I think they are worried about the wrong credibility issue.