EU Commission to take action on oversight of the carbon market

Following the Bourse Consult study into the Post Trade infrastructure for Carbon Emissions Trading, we are pleased to see that the European Commissioner for Climate Action has decided to take action to improve the integrity of this important market. In a press release issued recently the Commissioner, Connie Hedegaard, announced a review to look at the level of regulatory oversight and to determine what is needed to safeguard the continued integrity of the market. Possible outcomes of this study may be to classify emission units as financial instruments and to bring the market under financial markets legislation – two actions that we would applaud.

The Commission has issued a handy Q&A about the process.

 

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One comment on “EU Commission to take action on oversight of the carbon market
  1. Hugh Simpson says:

    The full text of the Commission’s communication is at http://ec.europa.eu/clima/news/docs/communication_en.pdf
    Its Annex cites our Bourse Consult report.

    While the principal focus of the Communication is on abuse of the market, I am pleased to see that the Commission will consider bringing the carbon market within European financial markets legislation. In particular, they will study whether the market should be brought within the scope of legislation necessary “for the efficiency and integrity of the carbon market”, such as the Settlement Finality Directive or the Financial Collateral Directive. This was one of the principal concerns identified in our report last year.