Europe's carbon trading scheme has proved to be "disastrous" and a "scam" in which companies have profited with no effect on emissions, a leading politician and a scientist said yesterday.

The environmentalist James Lovelock — who developed the Gaia theory of the planet as a "living organism" — and the former environment minister, Michael Meacher, said that market approaches to green issues, such as the EU Emissions Trading Scheme (ETS), were destined to be distorted by business pressures. Lovelock described similar market mechanisms that attempt to put a price on "services" provided by the natural world as akin to "slavery".