… as much as 90 percent of the entire market volume on emissions exchanges was caused by fraudulent activity.
They are now closing the barn door after the gold laden pack horse has left.
Traders involved in Europe’s flagship climate change programme, the Emissions Trading System – some of whom work at Germany’s biggest banks and energy firms – were the focus of a series of raids and arrests by British and German prosecutors in part of a massive pan-European crackdown on CO2-credit VAT fraud. …
The operation, which targeted a total of 50 companies and some 150 suspects in Europe’s biggest economy, involved around a thousand investigators from Germany.
Authorities in eight other EU nations – Austria, Belgium, Cyprus, the Czech Republic, Denmark, Finland, the Netherlands and Portugal, as well as Norway, outside the bloc – were approached by Frankfurt prosecutors for their help in the investigation.
Note the photo and the caption which accompanies the article: Fraud at the heart of the ETS has hurt the reputation of the EU’s flagship climate programme. And they show a picture of a power plant belching smoke? They should show a heavily subsidised, and largely valueless, wind farm.
If they think they have solved their problem with a few arrests they are mistaken. We could see the scam potential in carbon trading and off-sets from the get go and we are hardly experts. We do however have a skeptical attitude and at least an average dose of common sense [which seems to be a rare commodity these days]. There are more skeptics around than one thinks however and perhaps more critics on both sides are being heard now that the Climate Change cabal is more on the defensive.
Environmentalist critics of the ETS however said that such criminal activity is not the exception to the rule, but intrinsic to a carbon market.
“Carbon markets are highly susceptible to fraud, given their complexity and the fact that it is not always clear what is being traded,” said Oscar Reyes of Carbon Trade Watch.
“It’s good that the commission and tax authorities are clamping down, but it is unlikely that this will be the last case of carousel fraud, but also unlikely that it will be the last type of fraud involved in emissions trading.”
RELATED: Fake, fake, fake.