European Union Emission Trade System was implemented in order to fulfill the aims of reduction of greenhouse emission causing global warming asserted by the Kyoto Protocol put into practice in 2005. According to the implementation approved, on condition that companies are under the emission proportions determined for them, they have right to sell remaining unused emission to other companies. This is also valid for the countries. In fact this trade has no difference to any product trading. In terms of government, the carbon trade is not exempt from tax. There are 6 different trade forums buying and selling the greenhouse emission rights in Europe. It is expected that the EU carbon trade market is around 90 billion Euros.
In that case, how can the crime organizations earn money from this trade by defrauding the government? In short, carbon trade fraud, a sort of VAT fraud, is committed like this: A crime organization buys the emission rights without VAT from the companies of other countries after opening an account for itself in a national carbon accounting system. Then the rights are transferred to the country where they are accounted before. Afterwards, by means of a cabalist these rights are sold in a spot market by mostly bumper companies. The crime organizations pocketing the money disappear. Europol started an analyze project with the support of Belgium, Denmark, France, Nederland and England to uncover the crime organizations behind this carbon trade corruptions.
The world focused on the Global Climate Change Summit in Copenhagen for two weeks. The countries that cannot put forward any new binding international document replacing the Kyoto Protocol happened to find a document as an action plan having no binding but supported by U.S. and China. While haggles and discussions continued, by means of the media in many countries it was discussed whether the world is warming or not. The corresponding evaluations are made in detail by the related experts. What I want to call attention is that the program that is implemented in purpose of prevention the global warming by EU and the gaps which the crime organizations can find easily are being abused.
Crime organizations everywhere in world are looking for new ways to derive improper benefits. It is to be thought consciously and in detail that in the implementations where government plays an important role on trade and service procurements, and the procedures are to be set in a way to prevent the potential abuses. If we compare the crime organizations to cancer cells in a body, we should not forget that they will instantly spread the whole body by abusing any weakness that may occur.
Ömer Ersoy, Researcher