Hackers Disrupt European COâ‚‚ Market

In recent weeks, various cybercrime attacks have disrupted the computer systems that allow nations to manage their national greenhouse-gas emissions quotas and their possession of carbon assets according to international agreements (the Kyoto Protocol and the European system). One quota is the right to emit the equivalent of one ton of carbon dioxide during a specified period.

The initial attack targeted the Danish CO₂ quota register that was shut down on January 12. The Danish authorities took this decision after registry users received a fake email purporting to originate from the Danish Energy Agency and redirecting the recipients to a mirror site to steal their credentials.

It seems the attackers renewed their attempt last week by sending similar emails to carbon financial services in 13 European countries. Here, too, the goal was the theft of usernames and passwords to gain access to the national CO₂ quotas management systems. This caused another quota-market closure.

Using these credentials, hackers–instead of manufacturers, governments, and brokers–would in theory be able to sell and buy quotas. During the past 18 months, fraud on the COâ‚‚ market has caused a tax loss of €5 billion. Such access would also be useful for the biggest emitters of carbon dioxide; those countries could manipulate the international quotas to reduce their penalties. The following graphic, from Europol (the European Law Enforcement Agency), explains how such fraud can occur.

One thing is sure, the people behind these attacks cannot be simple hackers. They are likely in the pay of rogue states that reject rules-based international trade.