Emissions Trading System: Member States endorse more secure registry rules

According to a press release by the EU Commission dated June 17 2011, the Climate Change Committee backed proposals by the European Commission to enhance the integrity and the security of the registries system underpinning the EU Emissions Trading System (EU ETS). If the regulation is endorsed by the Parliament and the Council, registry administrators and law enforcement authorities will be able to detect fraud more easily. Now the Commission will focus on the outstanding area of putting in place a regulatory framework for the spot market in carbon allowances. EU Commissioner for Climate Action Connie Hedegaard said: ''I warmly welcome the support by Member States for the changes, which will significantly boost the security of national registries and the future single registry. The regulation also lays down more detailed rules for the Single Registry, which will replace national registries from early next year. With these measures and a more harmonized approach for the third phase of the ETS due to start in 2013, we have certainly strengthened the integrity of the European carbon market. I am grateful for the good cooperation with stakeholders and look forward to continue this constructive dialogue''. The security of the registries has become a priority as a result of the fraud with emission allowances earlier in 2011. Then the Commission took immediate action by temporarily suspending all national registries until they fulfilled minimum security requirements. The Commission's new proposals will bring the security of the future Single Registry in line with state-of-the-art security measures used in the financial sector.For instance, comprehensive preventive measures to avoid fraud will be introduced, including out-of band confirmation of transactions, the introduction of trusted account list and new account categories, the 4…