EU: CO2 Trading To Resume As Soon As Countries Boost Security

Trading of CO2 allowances on the European carbon spot market will resume gradually as soon as countries submit to the European Commission a report confirming they are applying stricter rules, after repeated frauds forced it to suspend trading last week, the commission said Tuesday.

“Each member state has been asked to urgently provide the European Commission with an independent report confirming that the minimum security requirements have been put in place,” the commission said in a statement. “The first reports are expected to be submitted in the coming days,” it said.

The commission — the European Union’s executive body that supervises the Emissions Trading Scheme, the EU market of allowances to emit greenhouse gases –suspended trading on the spot market last Wednesday, for at least a week, after repeated thefts of allowances were reported in a few member countries.

The commission and governments — which run the market — agreed Monday on guidelines for minimum requirements to make the trading more secure, it said. The new security measures are similar to the ones used in electronic banking, the commission explained, adding however that the specific requirements were confidential.

Source: WSJ