Munich Ends CO2 Emissions Trading

Excess, fraud, uncertainty, political will and economic factors = The End of CO2 trading.

Chicago's CCX ended two years ago.

Munich Stock Exchange to Discontinue Trade with CO2 Emission Certificates « German Energy Blog:

"The Munich Stock Exchange (Bayerische Börse) announced that it is to discontinue trading with CO2 emission certificates on 30 June 2012. Trade volume at the European Stock Exchanges dramatically decreased to almost zero over the previous months, so that there was not enough volume for a functioning, liquid market, Munich Stock Exchange said."
Bayerische Börse pointed out that reasons for the low demand ranged from damage caused to the reputation by the theft of emissions allowances, VAT fraud to the excess of emission allowances allocated free of charge and the resulting pressure on prices.

Google translates the release from the Exchange as:

Munich, 22.05.2012:
The Bavarian Stock Exchange ended 30 June 2012 the trading of CO2 emission allowances. The volumes are traded on European exchanges in recent months has sharply declined to almost zero.Emissions trading conditions are lacking for a liquid stock market trading. The reasons range from damage to their image and value of stolen emission-tax was mainly due to the oversupply of allowances allocated free of charge and the resulting decline in prices.
"In its current form of emissions trading is the market acceptance. We also expect to look at the situation in Brussels, emanating from the sovereign debt crisis and uncertainty, the negative economic outlook, not a quick adaptation of the framework of public policy, "said Dr. Christine Bortenlänger, CEO of Bayerische Börse AG. "We take this situation into the setting of CO2 trading 30 June bill. Without a real political effort, emissions trading will not be back on its feet, "continued Bortenlänger. "To achieve the initial goal of reducing emissions actually, the number of certificates should be clearly scarce, so the prices are rising again. Only then it would be worthwhile for companies to invest in technologies to reduce emissions, "said Bortenlänger.