The U.S. Chicago Climate Futures Exchange has completed the first exchange-traded deals in permits to emit carbon dioxide under a U.S. cap and trade scheme, the bourse said on Monday.
The Regional Greenhouse Gas Initiative (RGGI) comprises 10 northeastern states and may be a precursor to a federal U.S. carbon market, something both presidential candidates support.
Emissions trading schemes force businesses to buy permits to emit heat-trapping gas carbon dioxide, and the smaller the cap the higher the price of permits.
But the RGGI scheme -- which formally launches on Jan. 1 2009 -- caps carbon emissions by power generators at higher than historical levels, and as a result will not drive serious emissions cuts, said analysts.
"It seems it will be long (with surplus permits) for at least the first six years because of the way they set the caps," said Trevor Sikorski, analyst at Barclays Capital....MORE
Among the directors of the CCFE's parent, the CCX, is Maurice (Chairman Mo) Strong, Éminence Grise of the carbon biz (and Al Gore's mentor).