The Montréal Climate Exchange (MCeX), a joint venture of the Montréal Exchange (MX) (TSX: MXX) and the Chicago Climate Exchange® (CCX), announced today that it plans to launch trading of futures contracts on Canada carbon dioxide equivalent (CO2e) units on May 30, 2008, subject to regulatory approval.
"MCeX is moving quickly to launch the first exchange-traded carbon futures contract in Canada," said Luc Bertrand, president and ceo of MX and chair of MCeX. "We are enthusiastic about creating this new derivatives market and about the launch of trading."
"The demand for environmental derivatives continues to grow worldwide and the time is right to build a critical mass of trading activity in Canada," said Dr. Richard Sandor, chairman and founder of the Chicago Climate Exchange. "MCeX products will meet demand from industrial participants to manage their emissions risks at the lowest cost while also creating continuous incentives for technological innovation that reduce carbon emissions."
The MCeX partners initially announced the plan in July 2007 based on an assessment of the federal government’s air emissions policy released in April 2007 and following detailed consultations with potential market participants, including large industrial emitters. The MCeX set the launch date after the federal government announced further details of its greenhouse gas emissions regulations, including targets for intensity-based Canadian emissions reductions and offsets program terms.
"The Government of Canada has provided greater regulatory certainty regarding intensitybased emissions reduction targets and the definition of a single compliance standard for tradable credits," added Mr. Bertran. "This will enable emitters to more accurately forecast their individual intensity-based reduction targets and exposures." "Clear regulations are always welcome news for buyers, sellers and market operators. Our aim is to offer a market based solution that will optimize the policy guidelines set by the federal Government and support the reduction of carbon emissions in a cost effective manner."