European carbon market suspended
Jan 19, 2011
Bishop Hill in Economics, Greens

The Telegraph (among others) is reporting that the European carbon market has been suspended for a week following the theft of emissions permits from the Czech registry.

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.

I'm not sure I understand why they feel it necessary to suspend the market this time. According to the same article,

[The market] has been plagued by fraud, with Europol estimating that carbon trading criminals trying to play the system may have accounted for up to 90pc of all market activity in some European countries during 2009. Fraudulent traders mainly from Britain, France, Spain, Denmark and Holland pocketed an estimated €5bn.

Industrial-scale fraud - environmentalism's legacy to the world.

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