Enemalta has had to resort to taking legal action in order to recoup €60 million worth of carbon credit certificates, the company said in a press briefing on Monday.
The briefing was called after a media report said that Enemalta had lost some €60 million in a carbon trading deal gone wrong due to a Swiss intermediary.
The Swiss-based company, which has not been named, had been engaged to provide carbon credits – in this case otherwise known as EU Allowances (EUAs) – but had failed to fulfil three out of 11 agree trades, which are worth around €60 million.
EUAs are tradable credits that allow companies to emit a certain amount of carbon dioxide. Malta has used them in the past, particularly to make up for the country’s below-average share of renewable energy.
Enemalta said that it became aware of the issue on 29 August.
Enemalta said that, through lawyers in Malta, the United Kingdom and Switzerland, it is taking all the necessary legal steps to protect its interests. “This is an ongoing commercial transaction, and legal discussions are underway,” Enemalta said.
“In this instance, however, Enemalta’s board of directors was informed that, out of the 11 EUA transactions conducted with the same company, three did not meet the stipulated deadline. Enemalta is currently seeking remedial action from the foreign company,” Enemalta said.
Enemalta said that it has engaged both domestic and international legal counsel to assist in this case to recover all the money it is owed.
“A reputable London-based firm has been engaged to manage the situation effectively, ensuring the full protection of Enemalta’s interests. Since the other party is based in Switzerland, a Swiss legal firm has also been engaged,” the company said.
It denied media reports that the Swiss company in question has gone bankrupt, saying that the company is operating as normal.
The company said however that it cannot disclose any additional details at this stage to safeguard its legal and civil standing, but added that it wished to reassure everyone “that is considering all potential remedial avenues.”
“Enemalta will continue with its substantial investment programme to strengthen its distribution network, reinforce existing distribution centres and introduce new ones, whilst maintaining stable utility tariffs,” the company said.