BRUSSELS—The European Commission should consider some changes to the bloc’s emissions trading system to further improve the working of the carbon market and increase investor confidence, the European Court of Auditors said on Thursday.
In a report on the functioning of the carbon market as a financial exchange, the European Union’s Luxembourg-based independent auditors urge the bloc’s executive arm and national governments to improve monitoring of cross-border sales of emissions allowances and come up with a common legal definition.
The EU’s cap-and-trade system for carbon dioxide is the world’s largest system of its kind covering today around 11,000, power stations, industrial plants and airlines in 31 countries—comprising the EU’s 28 member states, as well as Iceland, Lichtenstein and Norway. It was introduced in 2005 and is now in its third stage of implementation.
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