EU looks to tighten carbon market oversight

The European Commission has launched a consultation to look at ways in which spot trading in allowances within the EU emissions trading scheme (EU ETS) can be made more secure against market abuse and theft.

The consultation paper, issued ahead of a stakeholder event on 4 May, focuses on two main options. The first would classify allowances (EUAs) as financial instruments, bringing them under existing regulatory controls, while the second would introduce bespoke rules.