Brokers establish own carbon trading risk tests

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

Brokers for European Union Emission Allowances (EUAs) and Certified Emission Reductions (CERs) under the European Emissions Trading Scheme (EU ETS) have established their own procedures for assessing counterparty risk, following governments' and regulators' failure to deal adequately with market fraud, says pricing and research house ICIS Heren.

EU governments and carbon registry offices not only failed to assess the legitimacy of carbon trading offices, but they were slow to react to fraud in t