Info Service on Climate Change (Aug13/01)
Dear friends and colleagues,
Many civil society organisations had long been warning of the inherent risks of carbon market and the unreliable nature of carbon trading as a solution to the global crisis of climate change. Some government delegations in the UNFCCC negotiations have also expressed concerns.
The latest revelation came from none other than the international police organisation, INTERPOL, recognising carbon trading crime as a new and emerging type of environmental and financial crime.The organisation with a trans-boundary mandate weighs in on the problem with its Interpol Guide to Carbon Trading Crime, outlining a list of the carbon marketís vulnerabilities to criminal activities, recognising that "carbon markets are at particular risk of exploitation and require sufficient monitoring and robust legal enforcement to tackle the potential for environmental and financial crime."
According to the document, "As a financial market, the carbon market has similar features to, and faces the same vulnerabilities as, other financial markets. Examples of potential exploitation include white collar crimes such as securities fraud and insider trading, embezzlement, money laundering, transfer mispricing and internet crimes. However, the relative immaturity of the carbon market, coupled with the intangible nature of the commodity itself, leaves the carbon market particularly susceptible to crimes that would typically be incapable of penetrating other commodity markets. The noteworthy potential for the carbon market to be exploited rests on a single significant vulnerability that distinguishes it from other markets - the intangible nature of carbon itself."
The report can be downloaded from this link:
With best wishes,
Third World Network