Beyond Neutral

Greenhouse Solutions

Carbon Trading Exchanges — International

Chicago Climate Exchange®

The Chicago Climate Exchange® (CCX) is a voluntary cap-and-trade scheme in the United States, established in 2003.  The aim of the CCX® is to reduce atmospheric concentrations of the six major greenhouse gases (GHG) though a legally binding voluntary scheme.  

Members are required to reduce GHG emissions from a baseline level each year.  Members who achieve a reduction below their targets create surplus allowances either to bank or sell.  Members who were unable to achieve their targets are required to meet their compliance by purchasing CCX® Carbon Financial Instrument® (CFI®) contracts. 

CFI® contracts are the commodity traded on the CCX and comprise of Exchange Allowances, issued to emitting members and Exchange Offsets, generated by qualifying offset projects. One CFI® equals 100 tonnes of CO2e. Offsets are generated through worldwide projects and verified by the Financial Industry Regulatory Authority in the US. 

Offset projects cover the following areas:

  • Agricultural methane;
  • Coal mine methane;
  • Landfill methane;
  • Agricultural soil carbon;
  • Rangeland soil carbon management;
  • Forestry;
  • Renewable energy;
  • Ozone depleting substance destruction;
  • Energy efficiency and fuel switching; and
  • Clean Development Mechanism.

California Climate Action Registry

The Californian Climate Action Registry (CAR) is a voluntary greenhouse gas (GHG) registry established in 2001 to encourage and reward business who take early action to reduce GHG emissions in the absence of a national (US) emission reduction scheme.  

The CAR has developed protocols for members and verifiers to compile and report emissions inventories through the online database known as CARROT (Climate Action Registry Reporting Online Tool).  Members are guided by the General Reporting and Verification Protocols to compile inventories and further guidance is provided to specific industry sectors through individual sector protocols which include cement, forestry, government and utilities.

The Climate Action Reserve (Reserve) was developed to provide a measurable standard for a national voluntary carbon reduction market.  The Reserve provides standardized guidelines for the development of offset projects and verification by an independent their party to ensure minimum standards are meet and GHG reductions are real.  Projects and the associated inventories are required to be entered into a registry to reduce the possibility of double counting and monitoring permanent offsets. 

Each tonne of carbon offset though the Reserve is known as a Carbon Reduction Ton (CRT) and is the commodity traded on the CAR.

Regional Greenhouse Gas Initiative

The Regional Greenhouse Gas Initiative (RGGI) is a mandatory cap-and-trade emissions reduction scheme covering ten Northeast and Mid-Atlantic US states. 

The RGGI aims to reduce GHG emissions from power stations by 10 percent below the 2000–2004 average by 2018. This will be achieved by stabilising emissions to 188 million short tonnes of CO2 during 2009–2014 and then reducing emissions each year by 2.5% during 2015–2018.

Each state has an individual CO2 Budget Trading Program that includes CO2 allowances auctioned off to power stations.  Revenue raised by auctions is invested in the clean energy sector and communities to control energy costs and invest in the clean energy sector.

Asian Carbon Exchange (ACX-change)

The Asian Carbon Exchange (ACX-change) was launched in 2006 and is fully owned by the Asian Carbon Group. 

Certified Emission Reduction (CERs) from Clean Development Mechanism projects are traded on a on-line trading platform.  The system is not regulated but is a rules based exchange governed by participants. 

A registry of certified VERs has been developed.

European Climate Exchange®

The European Climate Exchange® (ECX) is a member of the Climate Exchange PLc group of companies. 

The ECX was set up to provide an electronic platform for the trading of CO2 emissions/EU ETS.

California Climate Exchange™

The California Climate Exchange™ (CaCX™) is being developed by the Chicago Climate Exchange (CCX).

Montreal Climate Exchange

The Montreal Climate Exchange (MCeX) is a joint venture between the Montreal Exchange and the Chicago Climate Exchange (CCX) to provide an electronic trading platform for companies to trade emission offsets and to help industry meet reduction targets. 

The commodity traded on the MCeX is Futures Contracts based on Canada CO2e units. Future contracts contain 100 Canada CO2e units which allows one metric tonne of CO2e to be emitted.

The trading system proposed by the Canadian Government is a baseline and credit system with the initial compliance year 2010. Under this scheme, companies allocated baselines will be verified each year and any emissions above the baseline must be offset.  This can be achieved by the purchase of a mixture of units (either regulated emitter credits or Offset Credits) though the domestic carbon market, contributing to a technology fund, or through the purchase of CDM CERs.

Canadian Climate Exchange™

We are still investigating the Canadian Climate Exchange™ (CCE) which when we were preparing this page supplied no information on its website.