Another carbon disaster. These environmental scams are costing an awful lot.
Scam artists from around the world, capitalizing on lax regulations at the Danish emissions trading registry, have made off with an estimated $7-billion over the last two years, according to Europol. Denmark’s Office of the Auditor General is now investigating the fraud, which occurred after the Danish registry dropped requirements that carbon traders be documented. While allowing a free-for-all served the carbon market on the short term, by appearing to inflate the interest in carbon as a commodity, it ultimately backfired when much of the trading proved to be phony.
Aided by lax rules, the Danish emissions registry became the world’s largest, with 1256 registered permit traders, most of them fake. As one example, a registered trader used a London parking lot as his address. Following the discovery of the scam, some 1100 of these have been de-registered, leaving scant few traders in the Danish market.