Tag Archives: alternative
Carbon Trading At Increased Risk Of Criminal Exploitation: Interpol
Created on August 5, 2013 at 08:39 Carbon trading at increased risk of criminal exploitation: Interpol Tribune Desk Business The Interpol Guide to Carbon Trading Crime examines the areas within the industry which have the potential to be manipulated by criminals The intangible nature of the global carbon trading markets puts them at risk for exploitation by criminal networks, according to a new law enforcement guide produced by Interpol. The Interpol Guide to Carbon Trading Crime examines the areas within the industry which have the potential to be manipulated by criminals, through securities fraud, insider trading, embezzlement, money laundering and cybercrime. It also assesses the current vulnerabilities of the carbon market and provides information to support national authorities in establishing adequate policing measures, according to an Interpol press release. Carbon trading is the world’s fastest growing commodities market, with its current value estimated by the World Bank at around USD 176 billion. Differing from traditional markets in that there are no physical commodities, only “credits” for offsetting the output of carbon dioxide, it is this unquantifiable market combined with the large amounts of money invested and a lack of oversight which make it vulnerable to criminal activity. “It is imperative that the carbon trading markets remain secure from fraud, not just to protect financial investment, but also because the global environment depends upon it,” said Andrew Lauterback, Senior Criminal Enforcement Counsel at the US Environmental Protection Agency and Chair of the Interpol Environmental Crime Committee . “The Interpol Guide to Carbon Trading Crime is an important resource for all organizations and agencies committed to protecting our environment and developing a cohesive global response to this crime,” concluded Lauterback. An initiative of the Interpol Pollution Crime Working Group, the Interpol carbon trading guide was produced with contributions from partners including Environment Canada, the Norwegian Agency for Development Cooperation, the Netherlands Government and the US Environmental Protection Agency. The Pollution Crime Working Group will hold its 18th meeting during the Interpol Environmental Compliance and Enforcement Events in Nairobi, Kenya from 4 to 8 November 2013. The guide includes several case studies from around the world where greenhouse gas accounting firms, national authorities operating in under-regulated jurisdictions, and individuals or companies claiming to offset emissions in return for investment have cut corners, falsified information or received bribes. “Crimes that harm our environment have a wider impact on the health and safety of society as a whole, and therefore must be investigated and the perpetrators punished,” said Interpol Secretary General Ronald K Noble. “Interpol will continue to fight the criminal networks which endanger our precious environmental resources and use their ill-gotten proceeds to fund other criminal activities,” concluded the Interpol chief. With eight carbon credit trading companies operating on the European Union Emission Trading Scheme recently shut down for malpractice, the Interpol guide seeks to generate an international law enforcement response to these crimes. “It is sad to see criminals using fraud and other crimes to make profit out of a commodity that was created to protect the environment. It is not just the financial harm it causes investors, but this criminal activity risks seriously undermining the environmental integrity of the carbon markets globally,” said David Higgins, Manager of Interpol’s Environmental Crime Programme. “Interpol is supporting governments which are in the process of establishing or regulating the carbon markets to put an end to these types of crimes,” he added. Interpol also assists law enforcement agencies in policing the carbon market across borders and jurisdictions, in particular by identifying inconsistent regulations between countries and other legal loopholes which can be exploited by criminals. Continue reading
Carbon Drops to Two-Week Low as Weak Power Price Saps Demand
By Alessandro Vitelli – Jul 31, 2013 European Union carbon permits for December dropped the most in three weeks as record-low power prices in Germany reduced demand for emission allowances. The benchmark carbon contract fell as much as 4 percent to 4.12 euros ($5.49) a metric ton on ICE Futures Europe exchange, and traded at 4.13 euros at 12:47 p.m. in London . The contract is heading for its first monthly decline since April after dropping 1.7 percent this month. Solar and wind generation in Germany jumped 80 percent over the past three years, flooding the grid with cheap, emission-free power as the region’s sluggish economic expansion curbs electricity use. Carbon permits can track power prices, which include the cost of emissions allowances. “We forecast negative power demand across Europe, on a combination of lackluster economic growth, ongoing de-industrialization and energy efficiency,” Patrick Hummel, an analyst at UBS AG in Zurich, said today in an e-mailed note. Carbon permits fell yesterday for the first time in twelve days, reversing some of this month’s gains stemming from the prospect of a reduced supply of allowances in August. The EU, Germany and the U.K. are cutting auction volumes by 56 percent next month compared with July to reflect reduced trading in Europe’s traditional summer holiday season. Europe’s carbon trading system imposes emissions caps on about 12,000 power plants and factories, which must surrender tradable allowances to cover their discharges of carbon dioxide or pay fines. German 2014 electricity declined as much as 1.1 percent to 36.55 euros a megawatt-hour, the lowest since the contract began trading in January 2010, according to broker data compiled by Bloomberg. To contact the reporter on this story: Alessandro Vitelli in London at avitelli1@bloomberg.net To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net Continue reading
Climate Innovation Debate: What’s The Future For Carbon Trading Systems, Around The World?
Press release A focused panel of experts from business, academia and politics will consider how different regional carbon trading systems should be modified in order to enable them to effectively combat climate change. The debate, to be held on 24 September, is organised by Climate-KIC, which is part of the European Institute of Innovation and Technology (EIT). The European Commission and Parliament have been struggling to find a solution to plunging carbon prices, with a compromise deal being struck only as recently as June and many publicly questioning the future of the system. Advocates, however, have called for the success of carbon trading to be determined based on the level of carbon reduction, rather than the price of carbon. Research has been published to suggest that the market-based approach of Europe’s carbon trading system is still delivering results. Meanwhile, international policy makers are looking to adopt local versions of Europe’s carbon trading system. Climate-KIC will now bring together a panel of experts to discuss the future of carbon trading, and its effect on long term climate change mitigation and adaption. Debate The panel will include Pierre Dechamps, adviser to European Commission President Barroso on energy and climate change, former top climate diplomat John Ashton and Renat Heuberger, CEO of Climate-KIC partner South Pole Carbon Asset Management. The event is organised by Climate-KIC, one of three Knowledge and Innovation Communities (KICs) created in 2010 by the European Institute of Innovation and Technology (EIT). The debate will be moderated by Jonathan Tyler, Climate-KIC’s Chief Commercial Officer. Tyler is a former chemical industry focused investment banker and has held senior roles mostly at US firms, including Goldman Sachs and Bear Stearns. It is possible to attend the debate in Brussels on 24 September. The event starts at 16:00, with a reception planned at 18:00. The debate will take in the Science 14 Atrium conference centre, close to the European Commission and Parliament in Brussels. Please visit www.climate-kic.org/events/carbon-trading-debate for more information and to find out how to register to attend. Experts Pierre Dechamps, Adviser, Energy & Climate Change, Bureau of European Policy Advisers (BEPA) to President Barroso, European Commission Pierre Dechamps advises European Commission President Barroso on energy, climate change and the environment in his role as adviser with the Bureau of European Policy Advisers (BEPA). Dechamps has previously worked on clean coal technologies and CO2 capture and sequestration in the European Commission. John Ashton, former UK top diplomat, commentator and adviser on climate change politics John Ashton served as special representative for climate change for three successive UK foreign secretaries, spanning the current coalition and the previous labour governments. The UK foreign office pioneered during this time a diplomacy-led approach to climate change. Renat Heuberger, CEO, South Pole Carbon Asset Management Renat Heuberger fights climate change with market-based solutions such as carbon credits. Heuberger is CEO of Climate-KIC partner South Pole Carbon Asset Management, a company headquartered in Switzerland with twelve offices worldwide and operations in 25 countries. Climate-KIC Climate-KIC is the European Union’s largest public-private innovation partnership focused on climate change, consisting of dynamic companies, the best academic institutions and the public sector. The organisation integrates education, entrepreneurship and innovation resulting in connected, creative transformation of knowledge and ideas into economically viable products or services that help to mitigate climate change. The Climate-KIC aims to stimulate creativity and entrepreneurship by supporting the development of start-up companies and innovative projects in the climate area. Climate-KIC is one of three Knowledge and Innovation Communities (KICs) created in 2010 by the European Institute of Innovation and Technology (EIT). The EIT is an EU body whose mission is to create sustainable growth. Climate-KIC supports this mission by addressing climate change mitigation and adaptation. Continue reading
