German carbon trial prosecutor urges long sentences | Energy & Oil | Reuters

The trial focuses on a fraudulent practice called carousel trade in which buyers import carbon emissions permits in one EU
country without paying VAT and sell them in another, adding tax to the price and pocketing the difference.

 Gonder said the way Germany's flagship lender, Deutsche Bank, set itself up for emissions trading left the door
open for tax evasion.

...The EU carbon market, the bloc's chief mechanism to curb greenhouse gas emissions and fight climate change, has suffered a series of scandals since its launch in 2005, including the theft and recycling of carbon credits.