Interpol warns of criminal focus on $176 billion carbon market
Crime agency says lack of oversight and transparency threaten the environmental integrity of carbon markets -
By Ed King
Carbon trading schemes are at acute risk from criminal gangs and fraud, a new report from Interpol warns. The police agency says uncertain regulations and a lack of oversight and transparency threaten the environmental and financial integrity of the world’s carbon markets, worth an estimated $176 billion. And it says that there is a risk that if financial instruments related to carbon trading become too complex, the world’s carbon markets could spark a financial crisis on par with 2008. The report says law enforcement agencies must be more aware of ‘carbon crimes’, improve communication between countries and impose tighter regulations on transactions and calculations of emissions reductions. “Unlike traditional commodities, which at some time during the course of their market exchange must be physically delivered to someone, carbon credits do not represent a physical commodity but instead have been described as a legal fiction that is poorly understood by many sellers, buyers and traders,” Interpol says. “This lack of understanding makes carbon trading particularly vulnerable to fraud and other illegal activity.”
Interpol warns of criminal focus on $176 billion carbon market
Crime agency says lack of oversight and transparency threaten the environmental integrity of carbon markets -
By Ed King
Carbon trading schemes are at acute risk from criminal gangs and fraud, a new report from Interpol warns. The police agency says uncertain regulations and a lack of oversight and transparency threaten the environmental and financial integrity of the world’s carbon markets, worth an estimated $176 billion. And it says that there is a risk that if financial instruments related to carbon trading become too complex, the world’s carbon markets could spark a financial crisis on par with 2008. The report says law enforcement agencies must be more aware of ‘carbon crimes’, improve communication between countries and impose tighter regulations on transactions and calculations of emissions reductions. “Unlike traditional commodities, which at some time during the course of their market exchange must be physically delivered to someone, carbon credits do not represent a physical commodity but instead have been described as a legal fiction that is poorly understood by many sellers, buyers and traders,” Interpol says. “This lack of understanding makes carbon trading particularly vulnerable to fraud and other illegal activity.”
Interpol warns of criminal focus on $176 billion carbon market
