When Carbon Traders Go Bad.
This is why some carbon-cappers oppose trading and favor a tax. According to the EUObserver:
Traders involved in Europe's flagship climate change programme [sic], the Emissions Trading System - some of whom work at Germany's biggest banks and energy firms - were the focus of a series of raids and arrests by British and German prosecutors in part of a massive pan-European crackdown on CO2-credit VAT fraud...The criminal activity the raids focussed [sic] on relates to what is known as 'carousel fraud.' Criminals establish themselves in one EU member state and open a trading account with the national carbon credit registry. They then buy carbon credits in a different country, which makes them exempt from VAT. These are then sold to buyers in the original country, but with VAT slapped on, although the VAT then just disappears along with the trader and the money never arrives in government coffers.
North Dakota's member of the House of Representatives, 