Isra-Mart srl:EU clears hacked Czech carbon registry as safe to reopen

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Isra-Mart srl news:

The Czech Republic carbon registry has been informed that it can resume spot trading, two months after becoming a key target in a high-profile cyber attack that prompted the European Union to temporarily shut every national registry in its emissions trading scheme (ETS) and demand a wave of security upgrades.

The commission last night announced that the Czech and Italian carbon registries have been permitted to restart trading credits on the spot market from Thursday, after submitting independent reports showing that every trader on their national database now has adequate online protection.

The move will bring the number of registries that have resumed normal operations to 21, following the suspension in mid January of all spot transactions after Czech firm Blackstone Global Ventures revealed that 475,000 emissions allowances had been stolen from its national registry.

OTE, administrator of the Czech registry, has installed an upgraded security system that requires users to enter an identification code sent via text message. It has also run a series of tests to verify the IT security system, as required by the commission.

Despite the fact that the majority of carbon registries have now reopened, the attacks have raised fresh concerns about security levels across the ETS and are accused of undermining trader confidence.

The commission has been discussing additional security measures it could adopt to prevent further online attacks, including proposals to delay transferring permits between registry accounts and amendments to rules governing the public disclosure of permits' serial numbers. However, as yet nothing has been decided.

The UK's Serious Organised Crime Agency is also conducting a series of covert investigations, including posing as carbon traders, to target UK criminals involved in three forms of ETS abuse: VAT fraud, EU Allowance theft and money laundering.