Carbon dating fraud
The big question now is what happens to the victims of this and the eventual owners of the credits. "There have been warnings after warnings that regulation of the system is lackadaisical and inept," says one disillusioned broker at a big London company, who used to work in oil. You expect it to be properly regulated but Europe seems to run it more like a church raffle than a professional commodities market." What makes it worse is that many predicted the current problems accurately more than a year ago, just after the UK VAT fraud attacks.
It sounds complicated and remote from everyday life, but the system has a very obvious impact on everyone living in Europe.Distracting local regulators with a fake bomb scare, thieves behind the heist had made off with 500,000 carbon allowances – intangible products worth around €14 each that are the European Union's main weapon against climate change.Companies, such as those in the utility and heavy manufacturing sectors, are obliged to own allowances for each tonne of carbon dioxide they produce."While this is not a guarantee of no future problems, it will make such fraud more unlikely and this is certainly what the market's integrity needs," he says.
Having a better grip on who is behind each account would make it easier to trace who receives the carbon credits when they are first illegally transferred out of the register.The Sunday Telegraph found dozens of tiny UK-based companies, whose primary business appears to be anything from selling consumer goods to electronics, sitting on the list of account holders.