Kyoto carbon trade hits 1 million tonnes a day

The European Climate Exchange (ECX) said its futures trade in carbon emissions credits from developing countries based on a U.N.-scheme has hit a million tonnes a day after launching the contracts in March.

CEO Patrick Birley said it was difficult to predict forward volumes but saw no threat for a host of new exchanges that are likely to sprout from New Zealand to the United States, as these countries come up with their own carbon trading schemes.

"For us the most important thing is to build up greater liquidity. The important thing is the market grows. The competition among exchanges is not really important," Birley told Reuters in Singapore.

ECX, a subsidiary of UK-based Climate Exchange Plc, is the world's largest exchange for trading carbon derivatives based on the European Union's Emissions Trading Scheme.

On March 14, the exchange launched futures and options contracts based on the U.N.-run Clean Development Mechanism (CDM) offsetting scheme.

The CDM scheme allows rich nations to invest in clean energy projects in developing countries and in return receive offsets called CERs which they can sell for profit or use to meet emissions targets under the Kyoto Protocol.

Birley said China and India would continue to be the major supplier of CERs.

He said growth in carbon trading would remain strong as more nations come up with their own trading schemes but the biggest boost would be from the United States.

"The big event is going to be when the next U.S. president is elected. All three of the candidates are supporters of carbon trade. So then you'll have a U.S. (cap and trade) system," he said.

Related News

integrating-ai-data-centers-into-canadas-electricity-grids

Integrating AI Data Centers into Canada's Electricity Grids

CALGARY - Artificial intelligence (AI) is revolutionizing various sectors, driving demand for data centers that support AI applications. In Canada, this surge in data center development presents both economic opportunities and challenges for the electricity grid. Integrating AI-focused data centers into Canada's electricity infrastructure requires strategic planning to balance economic growth with sustainable energy practices.​

Economic and Technological Incentives

Canada has been at the forefront of AI research for over three decades, establishing itself as a global leader in the field. The federal government has invested significantly in AI initiatives, with over $2 billion allocated in 2024 to maintain Canada's…

READ MORE
clean electricity standard

Reconciliation and a Clean Electricity Standard

READ MORE

nb ev charging network planned

NB Power launches public charging network for EVs

READ MORE

strong-winds-knock-out-power-across-miami-valley

Strong Winds Knock Out Power Across Miami Valley

READ MORE

Barakah Unit 1

Barakah Unit 1 reaches 100% power as it steps closer to commercial operations, due to begin early 2021

READ MORE