Carousel fraud is no longer confined to transactions involving goods. The recent incidence of carousel fraud in the market for CO2 emission rights demonstrates that carousels can also involve intangibles. In this article, the author discusses the trade in CO2 emission allowances, the carousel fraud in the carbon market and how the fraud may affect legitimate businesses operating in that market, the measures that were taken to combat the fraud, and the ideas for a more comprehensive solution to stop this type of fraud.