This week, the Eurasian Climate Brief team heads to the Balkans, Bulgaria, to look into the cracks of the European Union's carbon market (a.k.a., EU ETS).

In July 2021, an investigation by Eleonora Vio and Daniela Sala for the Organised Crime and Corruption Reporting Project (OCCRP) found that two Bulgarian power plants appeared to have under-declared their carbon emissions. If true, this would mean the EU ETS would have lost around 30 million euros in emissions tax. Months later in February, the European Public Prosecutor's Office (EPPO) raided dozens of offices within the country.

Key to the investigation is the company tasked with verifying the emission reports, which appears to be connected to Hristo Kovachki, the country's secretive energy tycoon and alleged owner of the coal power plants.

Kovachki, whose empire almost crumbled in February, now appears to be off the hook, while the EPPO investigation has ground to a halt. So, is this the justice that awaits Europe's carbon fraudsters? And could it be that others are gaming the system as you read these lines?

To answer these questions, energy journalist Evgeni Ahmadzai reports from Sofia and the Bobov Dol thermal power plant. Natalie Sauer then talks ETS corruption with him and senior investigative journalist Atanas Tchobanov.

The EPPO has not responded to our requests for comment.

For more on Eleonora Vio's work, visit her website and Twitter account @elevio64. Daniela Sala's own portfolio can be consulted here and Twitter channel found @alasaleinad. Ivaylo Stanchev, a staff journalist at Kapital.bg, also contributed to the investigation.

The Eurasian Climate Brief is a podcast dedicated to climate issues in the region stretching from Eastern Europe to Russia down to the Caucasus and Central Asia.

This episode is supported by n-ost, The Moscow Times and the European Climate Foundation, and made by:

• Natalie Sauer, a French British environmental journalist and English-language editor for The Conversation. A former reporter for Climate Home News, her words have also appeared in international media such as Le Monde Diplomatique, Politico Europe, Open Democracy, Euractiv and the Heinrich Böll Foundation.
• Evgeni Ahmadzai is an energy journalist for Kapital.bg.
• Atanas Chobanov is the co-founder of Bivol.bg, an investigative outlet exposing the state-mafia nexus in Bulgaria. A veteran expert in corruption, Tchobanov has contributed to many cross-border investigation cases concerning hidden assets in Bulgaria and abuse of EU money.

Production by the www.thepodcastcoach.co.uk