(February 3, 2011) Ongoing concerns about fraud and corruption in carbon trading has lead the European Commission to indefinitely extend the freeze on trading in carbon allowances. Read about this and other stories in our carbon market media roundup.
The Guardian, January 27, 2011, “European commission extends carbon market freeze indefinitely”
The European commission’s emergency suspension last week of trading in carbon allowances to put a halt to rampant theft of credits by hackers has been extended indefinitely until countries can prove their systems are protected from further fraud.
While the suspension had been expected to end last night, Brussels now says that the freeze in trades had been imposed to give the commission executive some breathing space to figure out what to do.
“The suspension last week was only a transitional measure to give the commission and member states the time to assess the situation and decide the way forward,” the commission’s climate spokeswoman, Maria Kokkonen, said.
The Telegraph, January 31, 2011, “The great carbon trading scandal”
Within a few clicks of a computer mouse, stolen goods worth €28m (£24m) had bounced from the Czech Republic to Poland, Estonia and Liechtenstein before disappearing.
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.
Bloomberg News, January 26, 2011, “Offset Ban Will Boost Demand for Africa Carbon Projects, UN Says”
The European Union’s ban on carbon credit imports linked to some industrial gases will boost demand for Clean Development Mechanism projects in Africa, a United Nations Framework Convention on Climate Change official said.
“The huge new demand as a result of removing industrial gas credits from the supply will increase the attractiveness of CDM in Africa,” David Abbass, public information officer for the UNFCCC, said in a Johannesburg speech yesterday. That means “Africa is of growing interest to carbon market investors.”
Bloomberg News, January 28, 2011, “Cash-for-Clean Energy in India May Beat UN Carbon Plan”
When Oil & Natural Gas Corp. set up 34 wind turbines on a blustery inlet in western India to power oil-drilling equipment, it expected the project to earn United Nations carbon credits that could be turned into cash.
Two years after the windmills whirred into service, India’s largest oil explorer is still waiting for its first rupee for cutting carbon-dioxide emissions through the wind-power project. A.K. Hazarika, onshore director for ONGC, has a back-up plan that may be more lucrative: an Indian renewable-energy trading program that starts in March.
Read the previous media roundup here.
Categories: Carbon Credit Watch