Cap-and-Trade Fail: European Union Suspends Carbon Trading

This time there appears to have been a theft of permits in online attacks. Previously, the European carbon market has been plagued by VAT fraud, a phishing scam and the re-sale of used carbon credits. The Chicago carbon market has already been permanently closed. The European market will soon follow. Most of the buyers have left the trading floor.

LONDON/BRUSSELS (Reuters) - The European Union locked all accounts in its carbon market Wednesday, after a security breach, seeking to protect the battered reputation of the EU's main weapon against climate change.

The United States, Japan and Australia have all delayed implementing similar cap and trade schemes, and the latest glitch to the EU scheme could detract further from carbon trading as a global policy.