Fraud within Europe's carbon credit trading system has cost taxpayers more than $7 billion in the last 18 months, European police said Friday.
Officials at Europol, the body in charge of co-ordinating police forces inside the European Union, say fraudulent activity on the EU's Emission Trading System was first suspected in late 2008 when police noticed the volume of trades in certain countries would mysteriously spike.
"It is estimated that in some countries, up to 90 per cent of the whole market volume was caused by fraudulent activities," Europol said.
Since late 2008, the total value of fraudulent activity is believed to be in excess of five billion euros ($7.7 billion Cdn) from bogus trades in European unit allowances, or EUAs, the credits that companies in some countries buy to offset their greenhouse gas output. continue reading