From the Guardian:
Belgian prosecutors highlighted the massive losses faced by EU governments from VAT fraud today after they charged three Britons and a Dutchman with money-laundering following an investigation into a multimillion-pound scam involving carbon emissions permits.
The three Britons, who were arrested last month in Belgium, were accused of failing to pay VAT worth €3m (£2.7m) on a series of carbon credit transactions.
European authorities believe the EU has lost at least €5bn to carbon-trading VAT fraud in the last 18 months. Europol, the EU’s law-enforcement operation, fears the fraud will be used in other areas, especially gas and electricity trading markets, after criminals found VAT fraud was one of the most lucrative financial frauds.
“Last month, the European police agency Europol reported that the European Union’s Emissions Trading Scheme (EU ETS) had fallen victim to fraudulent trading activities over the past 18 months, worth €5 billion for several national tax revenues.
It estimates that in some countries, up to 90% of the whole market volume was caused by fraudulent activities.”
Four charged with carbon trading fraud in Belgium
http://www.risk.net/energy-risk/news/1585509/four-charged-carbon-trading-fraud-belgium
Meanwhile here in the USA, carbon is trading for 10 cents a ton on the Chicago Carbon Exchange:
h/t to WUWT reader “Michael”
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Well, the normal european AVT carousel fraud. Happens all the time here.
VAT, not AVT, sorry, had no coffee by now.
“It estimates that in some countries, up to 90% of the whole market volume was caused by fraudulent activities.”
Make that “100% caused by fraudulent activities” and I’ll agree with it.
The European Union’s Emissions Trading Scheme…
They misspelled “scam”…
The first decade of the new century will forever be known as the decade of “Fraud and Ponzi Schemes”.
Are we surprised?
The market news below says the price is ca. 13 Euros per ton CO2 as of 5 Jan 2010:
http://carbonpositive.net/viewarticle.aspx?articleID=1794
What’s the huge difference between this and the 10 to 15 cents/t-CO2? As a layman knowing little economics this is a big enigma…..
Wasn’t this the whole purpose of carbon trading? They probably didn’t anticipate they’d be on the other side.
Just a query. You state that “carbon” is trading for 10c/ton on the Chicago exchange. Is that carbon or carbon dioxide?
The difference is significant (12/44 or 0.27) in that if it is carbon then you can put out 3.7 tons of CO2 for each ton of carbon right purchased.
Historical chart of Chicago Carbon Exchange: http://www.chicagoclimatex.com/market/data/summary.jsf
More here:
http://greeninc.blogs.nytimes.com/2009/12/10/europol-74-billion-lost-from-carbon-trading-fraud-in-europe/
“Europol, whose full name is European Law Enforcement Organization (sic), said that France, the Netherlands, Britain, and most recently, Spain have suspended or otherwise altered the application of value-added tax on carbon emissions permits. Belgium and Denmark are also changing their codes, Mr. Pederson said. The idea is to require the seller of the credits, rather than the buyer, to pay the tax. Such moves have resulted in a 90 percent decline in trading volume.”
Would I be right in thinking that if we bought these carbon credits, that we could find some way to get our energy bills lowered?
It would be a good time to do it, seeing as these credits are now only worth a few cents.
Jeez.
I’d be fraudulent too, if I could “clip the ticket” for 10% or 12.5% or whatever VAT applies to the carbon trading scam.
Just imagine a 10+% impost on a shaky tax….. it is really a recipe for fiscal hapiness!
What is your exact problem, Anthony?
And everyone was concerned with that petty thief Bernie Madoff…..
Carbon Trading, its a charter for criminals.
It is kind of interesting that the futures are trading at $30 / tonne on the same exchange.
It cannot be repeated too often that the diagnosis of carbon dioxide being the villain is the cornerstone of the present ‘belief’. As a long retired GP (in his 90th year) I am aware that the medical profession is just as capable of making errors of diagnosis as other scientists are.
The EU is a big money pit, latest is that the EU are complaining they were conned by the Pharms into panic over the Swine Flu and over ordering vaccine. Sorry but the EU just loves a panic as it means they can step in and control, it doesn’t need any help along the way.
Financial markets tend to be a very good indicator as to the viability of a commodity and come to their own conclusions about these by pricing them as such.
This time last year carbon was trading at $1.75. A year later it’s $0.10. Speaks volumes.
The whole concept of “trading carbon” is a fraud anyway. Effectively a tax on thin air.
We must remind people: the AGW science is bad science, but they could get “lucky” and be _sort of right_ about CO2 effects on global temperatures after all. So there is uncertainty.
But on the other hand, we are CERTAIN, beyond any reasonable and unreasonable doubt, that the measures taken or proposed to curtail carbon emissions are pure NONSENSE.
The AGW propaganda machine conveniently keeps the focus of the debate only on the scientific aspects, so that the carbon trading scam is never questioned.
Now, as a side effect, if there is a policy that is in essence a legalized scam involving gobs of cash, which is also protected from public scrutiny (!), are you surprised that fraudsters jump on it to get easy money by exploiting its flaws?
It’s still a good idea but you guys just look for all of the negatives in every story 🙁
So venal EU politicians are complaining that their fraudulent tax based on fraudulent science was stolen by fraudulent carbon traders? Sounds like a turf war between two criminal gangs. I’m guessing the politicians complaining were only going spend it on access ramps so they could finally get both trotters in the trough….
Trouble is, all carbon trading is money laundering.
How can there be a value added tax on something with no added value?
Belgium climate fraud?
This is the newest post?
Reading the AirVent and Bishop Hill’s blog, and not seeing anything new for four days at CA tell me something’s out of whack.
My imagination does run wild sometimes…