Swiss CO2 offset system vulnerable to fraud

Switzerland’s Federal Audit Office has released a report that says the nation's system for compensating for CO2 emissions does not adequately avoid fraud. Tighter controls are recommended, but authorities are concerned about increasing bureaucracy. Since Switzerland’s CO2 law was enacted in 2013, fuel importers must compensate for part of their CO2 output by financing projects aimed at reducing emissions. Ten private audit offices are responsible for auditing these projects before they get the green light from the environment ministry, which gives companies a certificate worth CHF100 ($104) for each tonne of CO2  reduced. However, the Federal Audit Office reports a high risk of fraud, noting that the current system is too complex. The office cites evidence of inefficiencies in the project auditing process, as well as false information provided by project owners, incomplete and missing documentation submitted to the environment ministry, and inconsistent treatment ...