Chicago Climate Exchange (CCX), launched in 2003, is the world’s first and North America’s only active voluntary, legally binding integrated trading system to reduce emissions of all six major greenhouse gases (GHGs), with offset projects worldwide.
CCX Members are leaders in greenhouse gas (GHG) management and represent all sectors of the global economy, as well as public sector innovators. Reductions achieved through CCX are the only reductions made in North America through a legally binding compliance regime, providing independent, third party verification by the Financial Industry Regulatory Authority (FINRA, formerly NASD). The founder, Chairman and CEO of CCX is economist and financial innovator Dr. Richard L. Sandor, who was named a Hero of the Planet by Time Magazine in 2002 for founding CCX, and in 2007 as the "father of carbon trading."
CCX emitting Members make a voluntary but legally binding commitment to meet annual GHG emission reduction targets. Those who reduce below the targets have surplus allowances to sell or bank; those who emit above the targets comply by purchasing CCX Carbon Financial Instrument® (CFI™) contracts.
CFI Contracts, the CCX Tradable Commodity
The commodity traded at CCX is the CFI contract, each of which represents 100 metric tons of CO2 equivalent. CFI contracts are comprised of Exchange Allowances and Exchange Offsets. Exchange Allowances are issued to emitting Members in accordance with their emission baseline and the CCX Emission Reduction Schedule. Exchange Offsets are generated by qualifying offset projects.
Goals of CCX:
To facilitate the transaction of GHG allowance trading with price transparency, design excellence and environmental integrity
To build the skills and institutions needed to cost-effectively manage GHGs
To facilitate capacity-building in both public and private sectors to facilitate GHG mitigation
To strengthen the intellectual framework required for cost effective and valid GHG reduction
To help inform the public debate on managing the risk of global climate change
Benefits of Membership:
Be prepared: mitigate financial, operational and reputational risks
Reduce emissions using the highest compliance standards with third party verification
Prove concrete action on climate change to shareholders, rating agencies, customers and citizens
Establish a cost-effective, turnkey emissions management system
Drive policy developments based on practical, hands-on experience
Gain leadership recognition for taking early, credible and binding action to address climate change
Establish early track record in reductions and experience with growing carbon and GHG market
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Chicago Climate Exchange, carbon trading, carbon trade
Wednesday, January 2, 2008
Tuesday, January 1, 2008
Friday, December 28, 2007
Carbon Footprint
A Carbon Footprint is a measure of the impact human activities have on the environment in terms of the amount of greenhouse gases produced, measured in units of carbon dioxide.
A Carbon Footprint is made up of the sum of two parts, the direct / primary footprint and the indirect / secondary footprint.
1. The primary footprint is a measure of our direct emissions of CO2 from the burning of fossil fuels including domestic energy consumption and transportation (e.g. car and plane).
2. The secondary footprint is a measure of the indirect CO2 emissions from the whole lifecycle of products we use - those associated with their manufacture and eventual breakdown.
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carbon footprint, carbon footprint calculator, calculate carbon footprint
A Carbon Footprint is made up of the sum of two parts, the direct / primary footprint and the indirect / secondary footprint.
1. The primary footprint is a measure of our direct emissions of CO2 from the burning of fossil fuels including domestic energy consumption and transportation (e.g. car and plane).
2. The secondary footprint is a measure of the indirect CO2 emissions from the whole lifecycle of products we use - those associated with their manufacture and eventual breakdown.
Technorati Tags:
carbon footprint, carbon footprint calculator, calculate carbon footprint
Sunday, December 23, 2007
Carbon Trading: The World's Next Biggest Market
The New York Times recently ran an article claiming that "carbon will be the world's biggest commodity market, and it could become the world's biggest market overall."
Rest assured, it will be.
Currently valued at over $30 billion, the carbon trading market is set to skyrocket to over $1 trillion as the price of carbon becomes more and more valuable.
And it's possible to get a piece of this infant industry right now.
Early investors can play the burgeoning carbon market by:
1. Investing in carbon credits themselves, or2. Investing in companies that are making extra cash by reducing their emissions
There's no telling just how lucrative this market will become. Why else would huge companies like GE, DuPont, and Johnson & Johnson be racing to reduce their emissions?
Rest assured, it will be.
Currently valued at over $30 billion, the carbon trading market is set to skyrocket to over $1 trillion as the price of carbon becomes more and more valuable.
And it's possible to get a piece of this infant industry right now.
Early investors can play the burgeoning carbon market by:
1. Investing in carbon credits themselves, or2. Investing in companies that are making extra cash by reducing their emissions
There's no telling just how lucrative this market will become. Why else would huge companies like GE, DuPont, and Johnson & Johnson be racing to reduce their emissions?
Wednesday, December 19, 2007
It sounds attractive - does it work as a way of dealing with climate change?
Trading, whether between companies or countries, only works if emissions are reduced enough to contain global warming. Creating a market does not, by itself, reduce emissions.
Moreover, the benefits could be severely limited if trading is not comprehensive.
As important as what or who is included is what is not included.
Carbon dioxide represents only part - albeit a crucial part; more than 70% - of all greenhouse gases.
Furthermore, the US, the world's largest CO2 polluter, excluded itself by choosing not to ratify Kyoto.
And while the US is the biggest emitter today, China, which is projected to exceed the US in emissions by mid century, has no obligation to reduce emissions.
Even within trading schemes such as the ETS, whole sectors' emissions are excluded, such as transport, homes and the public sector.
Aviation is the fastest-growing source of CO2 emissions, and some experts have calculated that if it were included, the UK's entire allowance would soon be used up.
Critics say trading carbon condones the idea of "business as usual" and fails to emphasise the need to invest in renewable energies and move away from fossil fuels.
Trading, while it may acknowledge the threat posed by global warming, does not address the seriousness and scale of the problem, argue environmentalists.
For trading to work it would have to become much broader - perhaps even embracing personal carbon allowances for individuals, some say.
More and more scientists are saying that the carbon dioxide ceilings under the treaty are too high - perhaps far too high - to help avert serious climate change.
http://officialglobalwarming.blogspot.com/
Moreover, the benefits could be severely limited if trading is not comprehensive.
As important as what or who is included is what is not included.
Carbon dioxide represents only part - albeit a crucial part; more than 70% - of all greenhouse gases.
Furthermore, the US, the world's largest CO2 polluter, excluded itself by choosing not to ratify Kyoto.
And while the US is the biggest emitter today, China, which is projected to exceed the US in emissions by mid century, has no obligation to reduce emissions.
Even within trading schemes such as the ETS, whole sectors' emissions are excluded, such as transport, homes and the public sector.
Aviation is the fastest-growing source of CO2 emissions, and some experts have calculated that if it were included, the UK's entire allowance would soon be used up.
Critics say trading carbon condones the idea of "business as usual" and fails to emphasise the need to invest in renewable energies and move away from fossil fuels.
Trading, while it may acknowledge the threat posed by global warming, does not address the seriousness and scale of the problem, argue environmentalists.
For trading to work it would have to become much broader - perhaps even embracing personal carbon allowances for individuals, some say.
More and more scientists are saying that the carbon dioxide ceilings under the treaty are too high - perhaps far too high - to help avert serious climate change.
http://officialglobalwarming.blogspot.com/
How is carbon traded?
There are two main ways to exchange carbon.
The first is what is called a cap-and-trade scheme whereby emissions are limited and can then be traded. Under Kyoto developed countries can trade between each other.
The European Trading Scheme (ETS) is a cap-and-trade scheme and the largest companies-based scheme around.
It is mandatory and includes 12,000 sites across the 25 European Union member states.
It came into force in 2005 and covers heavy industry and power generation, including non-European companies.
There are also voluntary cap-and-trade schemes.
The Chicago Climate Exchange (CCX) is such a scheme.
Interest in carbon trading at regional level is increasing in America, even though the US government has decided not to ratify Kyoto.
The UK also has its own voluntary scheme, for which companies cut their emissions in return for incentive payments.
The second main way of trading carbon is through credits from projects that compensate for or "offset" emissions.
The Kyoto protocol's Clean Development Mechanism (CDM), for example, allows developed countries to gain emissions credits for financing projects based in developing countries.
A Kyoto mechanism called Joint Implementation (JI), also involves project-based schemes whereby one country can receive emissions credits for financing projects that reduce emissions in another developed country.
Compliance is critical.
Under their Kyoto obligations, industrialised countries have 100 days after final annual assessments to pay for any shortfall - by buying credits or more allowances via emissions trading.
Failure to do so leads to further penalties.
In voluntary schemes, by contrast, this is not the case.
http://officialglobalwarming.blogspot.com/
The first is what is called a cap-and-trade scheme whereby emissions are limited and can then be traded. Under Kyoto developed countries can trade between each other.
The European Trading Scheme (ETS) is a cap-and-trade scheme and the largest companies-based scheme around.
It is mandatory and includes 12,000 sites across the 25 European Union member states.
It came into force in 2005 and covers heavy industry and power generation, including non-European companies.
There are also voluntary cap-and-trade schemes.
The Chicago Climate Exchange (CCX) is such a scheme.
Interest in carbon trading at regional level is increasing in America, even though the US government has decided not to ratify Kyoto.
The UK also has its own voluntary scheme, for which companies cut their emissions in return for incentive payments.
The second main way of trading carbon is through credits from projects that compensate for or "offset" emissions.
The Kyoto protocol's Clean Development Mechanism (CDM), for example, allows developed countries to gain emissions credits for financing projects based in developing countries.
A Kyoto mechanism called Joint Implementation (JI), also involves project-based schemes whereby one country can receive emissions credits for financing projects that reduce emissions in another developed country.
Compliance is critical.
Under their Kyoto obligations, industrialised countries have 100 days after final annual assessments to pay for any shortfall - by buying credits or more allowances via emissions trading.
Failure to do so leads to further penalties.
In voluntary schemes, by contrast, this is not the case.
http://officialglobalwarming.blogspot.com/
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