Recycled CER scandal could push carbon trading over the counter

"This might start pushing trading of CERs onto the OTC market, because participants will start to sort their own documentation out to guarantee the CERs they are trading are not ones that have been used before," says Trevor Sikorski, carbon analyst at Barclays Capital.

A number of European climate exchanges, including France's BlueNext and Norweigan-based Nord Pool, have halted trading of CER contracts this week in response to fears recycled carbon credits have entered the market.

In a memo to