The International Emissions Trading Association aired their concerns regarding the temporary suspension of national carbon registries following a spate of cyber-attacks. The association also submitted the findings of a recent market survey they made.
The survey felt the sentiments from over 20 industrial players, financial intermediaries and trading platforms under the association.
IETA said the commission and European Union member states should be made aware of the “damage” the lockdown is causing.
Most of the respondents support the piecemeal reopening of the registries to address safety concerns. However, this is only for registries with spot market platforms that are doing business again within one week.
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Respondents also expect a clear deadline set for all registries to implement security measures.
But Jos Delbeke, director general of the European Commission’s climate action division, said no more than half of the national registries are likely to reopen on January 26.
“I do not expect that of this Wednesday all 27 authorities will be fit enough to resume again,” he told a European parliament hearing, Reuters reported. «I do not expect a figure that is beyond half of the member states.»
«In some member states I am told recuperation of losses is possible, but in others that would be much more difficult,» Mr. Delbeke added.
The Austrian carbon registry reported that the hacking did not result in losses for holders of personal and operator accounts. But the Czech carbon registry closed its doors after Blackstone Global Ventures reported a theft of 470,000 carbon permits from their account.
The recent cyber attacks on five European carbon registries gave the commission no choice but to close carbon transactions in all of its national registries until 26 January.
Only those registries which meet proven security criteria would resume trading, according to the commission.
Status accounting
The respondents, in addition, urged the commission to publish a comprehensive list of stolen carbon credits from the national registries.
Each registry should be asked its opinion concerning the ownership and usability of stolen credits, the survey said.
Last week, the commission said up to 2 million carbon credits, worth nearly 30 million euros ($40.84 million), were illegally transferred out of certain accounts. The figure still stands, although the commission has not given a list of stolen credits.
“The commission must work with the national registries to publish a list of the stolen certificates as soon as possible,” the association said in the letter sent last week.
IETA, comprised of 170 international companies active in carbon trading, said the theft could have been avoided if basic security precautions used in other markets were implemented properly and earlier.
The organization said safety precautions like identity checks, the use of a single carbon registry and active regulations have been recommended as early as February 11 last year.
With the commission planning to have a single carbon registry in 2012, IETA recommends that the commission publish a progress report on how to make it secure.
The commission said the centralized registry’s security must be robust and well tested. The airline industry, for instance, will be joining the trading scheme in 2012. The petrochemicals, ammonia and aluminum industries will follow suit in 2013.
