Wednesday, November 7, 2007

U.S. exchanges explore carbon trading

From Reuters:

...New York Stock Exchange operator NYSE Euronext recently said it has partnered with French bank Caisse des Depots (CDC) to launch a carbon trading market in early 2008.

The market will allow trading and settlement of carbon dioxide allowances and credits, which can be bought and sold like any commodity.

NYSE Euronext spokesman Stefane Flex said further details will be presented at the United Nations' panel on climate change next month. ...Craig Donohue, chief executive of CME Group Inc, the world's largest derivatives market, also said on a third-quarter earnings call his exchange was interested in developing carbon trading products.

...Currently, about two-thirds of carbon trading happens in over-the-counter markets, said Veronique Bugnion, managing director of Point Carbon, which provides research on global energy and carbon markets.

Four exchanges -- Nord Pool, Powernext, the European Carbon Exchange and Chicago Climate Exchange -- conduct the remainder, Bugnion said.

The Chicago Climate Exchange is the first U.S. exchange to create a market for carbon credit trading.

Nymex Holdings Inc, owner of the New York Mercantile Exchange, has also said it will begin offering contracts for carbon trading in the first quarter of 2008....MORE