Enemalta in legal battle to recoup €60m from Swiss carbon credit trader
Company hires UK and Swiss lawyers as it denies trader has gone bankrupt
Enemalta risks losing €60 million worth of carbon credit certificates and has hired UK and Swiss lawyers to try and avoid that, the company has confirmed.
The state energy company acknowledged the legal issue in a press briefing held on Monday, saying a Switzerland-based company it engaged to provide carbon credits missed three trades.
The state energy company said it became aware of the issue on August 29 when the company did not fulfil three out of 11 agreed trades involving EU Allowances (EUAs), a form of carbon credit.
It declined to name the Swiss company when asked to do so.
In a press briefing held on Monday, Enemalta confirmed to Times of Malta that the three missing trades were worth a combined €60 million.
“Enemalta is seeking remedial action from the foreign company," it said, adding that it has hired a London-based law firm and Swiss legal firm to protect its interests.
"This is an ongoing commercial transaction, and legal discussions are underway," it said.
EUAs are tradable permits that allow companies to emit a certain amount of carbon dioxide. The Swiss firm was acting as the trader in this deal.
Enemalta said the trades were conducted under a Master Agreement drafted by the International Emissions Trading Association and represent international practice.
It denied media reports alleging that the Swiss company in question has gone bankrupt.
Enemalta chairman Ryan Fava said the company "is not insolvent and is operating normally."
It said it could not disclose further details about the company or the trades “to safeguard legal and civil standing”, but reassured the public that it is “considering all potential remedial avenues”.