Carbon credits drive The Green Exchange

TheStar.com - Business - Carbon credits drive The Green Exchange
February 26, 2008

The New York Mercantile Exchange, the world's largest energy market, will open an exchange for trading carbon dioxide emissions credits in March.

Contracts at The Green Exchange will be introduced March 16 for trade on March 17, Nymex said yesterday. The initial contracts offered will be European Union Allowance futures and options and Certified Emission Reduction futures.

Global trade in emissions credits tripled to $30 billion (U.S.) last year, as restrictions on carbon-dioxide pollution from power plants and refineries in Europe drove energy companies to buy permits. Twenty-two U.S. states are exploring mandatory carbon caps and emission-credit markets similar to the one in the EU.

Nymex developed The Green Exchange with utilities, emissions brokers and investment banks to create contracts with uniform standards.

Partners in the exchange include JPMorgan Chase & Co., Morgan Stanley, Tudor Investment Corp. and emissions brokers Evolution Markets Inc., Nymex said.

The contracts will trade on the CME Group Inc.'s Globex electronic platform, the venue that has listed Nymex's contracts since 2006. Nymex will apply for U.S. Commodity Futures Trading Commission certification with its trades cleared by Nymex.