Green Quadrant Emissions Trading Exchanges 2008 (Global)

Published: 15 April 2008

28 pages, 11 figures

Introduction

The global emissions market has grown from nothing in 2004 to a market with traded volume worth about €25 billion in 2007 according to Barclays Capital. This rapid development has seen a raft of product launches, partnerships, acquisitions and investments by leading commodities and derivatives exchanges. Over the next 2 years the complexity will increase as more exchanges spring up around the world and additional climate-change linked derivatives such as disaster and weather risk are traded.

Key players in the emerging GHG emissions trading market are Nord Pool, Climate Exchange plc, European Climate Exchange ( ECX ), ICE, Nymex, European Energy Exchange ( EEX ), Climex, NCDEX and Bluenext. These new and existing emissions trading exchanges offer forward, spot and options contracts for Certified Emission Reductions ( CERs ) and European Union Allowances ( EUAs ) that enable utilities, banks and carbon funds to trade emissions allowances and credits. The EUAs, previously allocated for free under the EU Emissions Trading Scheme ( ETS ) are now being partially auctioned. The CERs traded on the GHG trading exchanges are generated by carbon credit devdlopers operating under the Kyoto Protocol’s Clean Development Mechanism ( CDM ) and Joint Implementation ( JI ) scheme. These markets will increasingly link with others such as the UK’s Carbon Reduction Commitment ( CRC ) and the Regional Greenhouse Gas Initiative ( RGGI ) in the nort-east of the US. 

How You Benefit

This report helps climate change decision makers in corporates and government, and carbon markets advisers in professional services firms to understand the current state of the seven leading emissions trading exchanges: Bluenext, ECX, Nord Pool, Green Exchange, EEX, Climex and NCDEX. Based on interviews with carbon market participants and detailed analysis of each trading exchange, this report compares and characterizes 7 emissions trading exchanges. Across 23 evaluation criteria, the comparison provides rich data on service offerings, market momentum, range of contracts, technology platform, market share and future strategy.

TABLE OF CONTENTS

WHY YOU NEED TO KNOW ABOUT EMISSIONS TRADING EXCHANGES

The Price Of Carbon Will Impact Financial Performance
Identify Potential Opportunities From Emissions Trading
Understand The End-To-End Emissions Reduction Value Chain
Bet On Winning Emissions Exchanges – Not The Losers

MARKET OVERVIEW

Introduction
Market Definition
What’s Driving The Growth In Emissions Trading?
Europe’s Emissions Trading Boom: The Facts

GREEN QUADRANT FOR EMISSIONS TRADING EXCHANGES

Evaluated Firms
Evaluation Criteria
Explaining The Verdantix Green Quadrant Methodology
Emissions Trading Exchanges Assessed And Compared
How To Use The Verdantix Green Quadrant

EXCHANGE PROFILES

Bluenext
Climex
European Energy Exchange (EEX)
European Climate Exchange / ICE Futures Europe
Green Exchange
National Commodity & Derivatives Exchange (NCDEX)
Nord Pool / OMX

CUSTOMIZED DECISION SUPPORT

The Verdantix Green Quadrant methodology is designed to provide decision support for both buyers and suppliers of the analyzed product or service. We offer customized half-day and full day decision support sessions which leverage the rich data set behind the Green Quadrant analysis. For more information please email: research@verdantix.com

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