Chicago Climate Futures ExchangeTM to Launch Certified Emission Reductions (CERs)
Chicago Climate Futures Exchange-TM (CCFE-TM), a wholly-owned subsidiary of Chicago Climate Exchange® Inc. (CCX®) is launching a futures contract on Certified Emission Reductions (CERs) today, Friday, August 24, 20071. The launch of CCFE CER futures contracts marks the first time that hedging tools for CERs, a Kyoto compliant emissions instrument, are offered on an exchange-traded platform in North America.
"CERs are tradable instruments, issued under the United Nations Clean Development Mechanism, for approved and verified greenhouse gas (GHG) emission reduction and sequestration projects undertaken in developing countries. The Kyoto Protocol allows national and corporate GHG reduction goals to be met through the use of CERs. These instruments are fast emerging as the international currency in the global markets for reducing GHG emissions."
"The CCFE CER futures contracts are cash settled instruments priced in US dollars. This structure allows market participants to efficiently hedge and manage risk from CER price fluctuations in the absence of a delivery mechanism. Various U.S. carbon cap-and-trade legislative proposals explicitly include linkage with international markets. CERs are expected to play a pivotal role in linking various domestic carbon markets." Via:: CCX, a pdf file