The European Union temporarily shut down its carbon market after a security breach, reports Point Carbon.
The European Commission suspended most of its Emissions Trading Scheme following the disclosure of a theft of 475,000 E.U. carbon dioxide emissions allowances (EUAs) from the Czech Republic’s carbon registry. The EUAs, worth around 7 million euros, were transferred to an account in Poland, then Estonia, and then Lichtenstein, before disappearing.
It isn’t the first scandal to hit the carbon market.
“This theft and a hacking attack on the Austrian registry on January 10 follows a raft of scandals to hit the market in the past two years, including VAT fraud, a phishing scam, and the resale of used carbon credits,” states Reuters.
Kjersti Ulset, Manager European Carbon Market at Point Carbon, says the theft, while serious, represents only a small proportion of the market.
“Hacking attacks of this type have also occurred elsewhere within the EU in the recent past,” said Ulset in a statement. “Although such incidents are negligible in terms of actual market impact they will over time undermine the credibility of carbon trading as a policy measure to reduce emissions in Europe. Immediate actions to improve the security of EU registries are thus needed.”
(06/10/2010) Liberian President Ellen Johnson Sirleaf established a commission investigate a proposed forest carbon credit deal between the West African nation’s Forest Development Authority (FDA) and UK-based Carbon Harvesting Corporation, reports Global Witness, an NGO that originally raised concerns about the scheme, which aimed to secure around a fifth of Liberia’s total forest area — 400,000 hectares — in a forest carbon concession.
(01/13/2010) The Indonesian government squandered billions of dollars in funds set aside for reforestation through corruption and mismanagement in the 1990s, raising important questions as the country prepares for the influx of money from a proposed climate change mitigation scheme known as REDD+ (reduced emissions from deforestation and degradation), warns a new report released Tuesday by the Center for International Forestry Research (CIFOR), a forest policy research group.