From Businessweek.com: The United Nations carbon market, the world’s second largest, is at risk of shrinking until regulators close a loophole that allowed Hungary to sell credits that are invalid in Europe.

The European Commission couldn’t stop ministers in Budapest from unloading UN emissions offsets — surrendered once under Europe’s cap-and-trade system — to traders planning to resell somewhere else, according to the International Emissions Trading Association. Some of the credits ended up back in Europe, bringing spot trading of UN credits to a standstill last week……………………………Full Article: Source