Suspended for fear of fraud European carbon market

Companies need carbon dioxide and polluting emission permits are granted to a number of emissions that can be exchanged Photo: REUTERS

More than €2bn (£ 1. 7bn) trade is likely to be disrupted after the European Commission said it would prevent transactions until 26 January.

The suspension follows allegations that 475 000 worth of EUR 7 million carbon credits were stolen by an attack of piracy on Czech carbon registry. It seems that intangible benefits were bounced between the countries of Eastern Europe to disappear without trace.

Bluenext exchange the France was the first to close its platform, while the Austria, Poland, Estonia and the Greece also close their trade registers.

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

Under the regime of Lighthouse, companies need permits to emit carbon dioxide in the global fight against climate change and polluting enjoy a number of emissions that can be negotiated.

But he suffered by fraud, with Europol estimate that carbon trading criminal trying to play system may have represented until 90pc of all market activities in some European countries in 2009. Fraudulent merchants mainly from Britain, France, Spain, Denmark and Holland pocketed about carbon allowances of €5 billion. are particularly vulnerable to fraud, because they are valuable, intangible and easily moved between different countries.

The Commission said Wednesday "will ensure that this transitional measure can quickly be lifted for all registers of adequate security measures".

Kjersti Ulset, Manager for the European market of carbon to carbon, said: "Hacking attacks of this type also occurred elsewhere in the European Union in the recent past."

"Although such incidents are negligible in terms of actual impact on the market, they will be the time undermine the credibility of carbon trading as a policy of reducing emissions in Europe." Immediate action to improve safety EU registers are therefore necessary. »

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