Fraud crackdown will boost carbon market credibility, say experts

Carbon markets - a good idea up in smoke...

Carbon market credibility will be boosted and market regulation will tighten, following this week's Europe-wide crackdown on incidents of Value Added Tax (VAT) carousel fraud, say experts.

"The fraud allegations are, no doubt, a very bad thing for the market," says James Pointon, partner at law firm Brown & Rudnick. "But market participants will think it's great that the authorities are pursuing incidences of fraud and cracking down upon it."

Under the Kyoto Protocol, utilities and companies tha

To continue reading...