LONDON (Reuters) - A European carbon market monitoring authority could prevent abuse, the International Emissions Trading Association said on Tuesday, in a bid to help restore the already damaged reputation of the nascent market.
A monitoring body in an existing EU regulatory structure such as the European Securities and Market Authority or the Agency for Cooperation of Energy Regulators could ensure more coordination and data exchange among national supervisors, IETA suggested in a report to the EU Commission. "To prevent conflicts between regulators, it is of utmost importance to avoid overlaps and to ensure that regulators have appropriate powers to supervise the entire carbon market, covering both spot/physical forward and financial derivatives," the report said.
The EU's Emissions Trading Scheme (EU ETS) caps the carbon emissions of heavy industry and allows installations to buy carbon permits to cover any emissions above the limit.
