Key Points:
Recent problems in Europe's carbon markets are lessons
from which Australia should learn when it devises any emissions
trading scheme.
Another area of focus for the legal session at the AGM was the
significant uncertainty in the future of carbon trading post-2012
in Europe arising from the future expiration of Kyoto Protocol
combined with the absence of any successor scheme to replace
it.
ISDA acknowledged that it will be a difficult task to restore
confidence and liquidity in the markets with no clear industry
standard documentation to allow for Phase 3 EU Allowance or Kyoto
Unit trading.
Rising uncertainty in the EU carbon market has not been helped
by the recent spate of phishing and cyber theft of permits from EU
National Registries which have severely undermined confidence in
the market. It was noted that enhanced IT security measures are
required across all Member States National Registries including
improved "know your client" (or KYC)
