BlueNext

Last updated
BlueNext
TypeEnvironmental (carbon) exchange
LocationParis, France
FoundedDecember 2007
ClosedDecember 2012
Owner NYSE Euronext (60%)
Caisse des Dépôts (40%)
Commoditiesemission allowances and emission credits
IndicesEUA Spot Index
Website BlueNext.eu

BlueNext was a European environmental trading exchange, considered the largest CO2 permit spot market, [1] with headquarters in Paris, France. On October 26, 2012, BlueNext announced that it would close permanently its spot and derivatives trading operations as of December 5, 2012.

Contents

Overview

BlueNext was founded in December 2007 when NYSE Euronext and Caisse des Dépôts purchased the carbon market from PowerNext. [2] NYSE Euronext holds a 60 percent majority stake in BlueNext and Caisse des Dépôts owns the other 40 percent. [3] PowerNext continues to operate its electricity market separately.

Members of BlueNext are offered spot trading of carbon (CO2) emission rights and derivative products (futures) on European Union Allowances (EUAs) and Certified Emission Reductions (CERs). LCH.Clearnet SA provides clearing services for BlueNext futures EUA and BlueNext futures CER. [4]

As an expansion to their existing products and services, BlueNext began offering auction services, and as a result of strategic partnership with Markit issued their first index, the Markit BlueNext EUA Spot Index.

NYSE Blue

NYSE Euronext and APX announced on September 7, 2010 plans for a joint venture, NYSE Blue, that will focus exclusively on environmental and sustainable energy markets, and expansion of these services in North America and Asia. NYSE Euronext will contribute its ownership in BlueNext in return for a majority interest in the joint venture, while APX will contribute its business (operational, regulatory infrastructure and services for the environmental and sustainable energy markets) in return for a minority interest in the venture. [5] [6]

China

China is the world’s leading source of greenhouse gases and is identified as the source of more than 80 percent of carbon credits traded globally. In June 2009, BlueNext and the China Beijing Environmental Exchange (CBEEX) signed an agreement to set up an international carbon-trading related information platform that would jointly publish and promote Clean Development Mechanism (CDM) projects based in China. This information is to be sourced from the China Beijing Environmental Exchange. [7] [8]

The second joint project between BlueNext and CBEEX is the Panda Standard – the first voluntary standard designed specifically for China and the Chinese carbon marketplace, with an initial primary focus on agriculture and forestry. [9]

United States

BlueNext announced its intention to extend its presence into the United States. The company is currently going through a period of study and research to design products for this North American market.

Main competitors

See also

Related Research Articles

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Euronext N.V. is a pan-European bourse that provides trading and post-trade services for a range of financial instruments.

The Chicago Climate Exchange(CCX) was a voluntary, legally binding greenhouse gas reduction and trading system for emission sources and offset projects in North America and Brazil.

The Clean Development Mechanism (CDM) is a United Nations-run carbon offset scheme allowing countries to fund greenhouse gas emissions-reducing projects in other countries and claim the saved emissions as part of their own efforts to meet international emissions targets. It is one of the three Flexible Mechanisms defined in the Kyoto Protocol. The CDM, defined in Article 12 of the Protocol, was intended to meet two objectives: (1) to assist non-Annex I countries achieve sustainable development and reduce their carbon footprints; and (2) to assist Annex I countries in achieving compliance with their emissions reduction commitments.

The European Climate Exchange (ECX) managed the product development and marketing for ECX Carbon Financial Instruments, listed and admitted for trading on the ICE Futures Europe electronic platform. For a time it was a subsidiary of the Chicago Climate Exchange, but eventually became a sister company. Both companies as well as IFEX were owned by Climate Exchange Plc, a holding company listed on the London Stock Exchange's Alternative Investment Market, founded by Richard Sandor. A chief executive was Patrick Birley, son of archaeologist Robin Birley. While products were listed on the London Stock Exchange, the sales and marketing team was initially based in Amsterdam, the Netherlands, under its first CEO, Peter Koster, before moving to London in 2007. Climate Exchange Plc was bought in April 2010 by Intercontinental Exchange.

<span class="mw-page-title-main">Carbon offsets and credits</span> Carbon dioxide reduction scheme


Carbon offsetting is a trading mechanism that allows entities such as governments, individuals, or businesses to compensate for (i.e. “offset”) their greenhouse gas emissions by supporting projects that reduce, avoid, or remove emissions elsewhere. A carbon credit or offset credit is a transferable financial instrument, that is a derivative of an underlying commodity. It can be bought or sold after certification by a government or independent certification body. When an entity invests in a carbon offsetting program, it receives carbon credits, i.e "tokens" used to account for net climate benefits from one entity to another. One carbon offset or credit represents a reduction, avoidance or removal of one tonne of carbon dioxide or its carbon dioxide-equivalent (CO2e). Offset projects that take place in the future can be considered to be a type of promissory note: The purchaser of the offset credit pays carbon market rates for the credits and in turn receives a promise that the purchaser's greenhouse emissions generated in the present (e.g. a roundtrip flight to London) will be offset by elimination of an equal amount at some point in the future (e.g. 10 to 20 years for planting 110 seedlings). Offsets that were generated in the past are credible only if they were in addition to reductions that would have happened anyway.

<span class="mw-page-title-main">European Union Emissions Trading System</span> First large greenhouse gas emissions trading scheme in the world

The European Union Emissions Trading System is a carbon emission trading scheme which began in 2005 and is intended to lower greenhouse gas emissions by the European Union countries. Cap and trade schemes limit emissions of specified pollutants over an area and allow companies to trade emissions rights within that area. The EU ETS covers around 45% of the EUs greenhouse gas emissions.

Flexible mechanisms, also sometimes known as Flexibility Mechanisms or Kyoto Mechanisms, refers to emissions trading, the Clean Development Mechanism and Joint Implementation. These are mechanisms defined under the Kyoto Protocol intended to lower the overall costs of achieving its emissions targets. These mechanisms enable Parties to achieve emission reductions or to remove carbon from the atmosphere cost-effectively in other countries. While the cost of limiting emissions varies considerably from region to region, the benefit for the atmosphere is in principle the same, wherever the action is taken.

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<span class="mw-page-title-main">Certified emission reduction</span> Type of carbon emission credit

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<span class="mw-page-title-main">Carbon emission trading</span> An approach to limit climate change by creating a market with limited allowances for CO2 emissions

Carbon emission trading (also called emission trading scheme (ETS) or cap and trade) is a type of emission trading scheme designed for carbon dioxide (CO2) and other greenhouse gases (GHG). It is a form of carbon pricing. Its purpose is to limit climate change by creating a market with limited allowances for emissions. This can lower competitiveness of fossil fuels and accelerate investments into low carbon sources of energy such as wind power and photovoltaics. Fossil fuels are the main driver for climate change. They account for 89% of all CO2 emissions and 68% of all GHG emissions.

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<span class="mw-page-title-main">Hong Kong Mercantile Exchange</span>

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<span class="mw-page-title-main">Richard L. Sandor</span>

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References

  1. BlueNext Helps Unwind Trades in Recycled CO2 Dispute
  2. Article in Dealing with Technology (DWT) [ permanent dead link ]
  3. Spot carbon trading kicks off on BlueNext [ permanent dead link ]
  4. LCH.Clearnet official site Archived July 13, 2011, at the Wayback Machine
  5. "Press Release: NYSE Euronext and APX to Establish NYSE Blue". Euronext.com. 2010-09-07. Retrieved 2011-01-15.
  6. "NYSE Blue Frequently Asked Questions". APX.com. Archived from the original on 2010-12-23. Retrieved 2011-01-15.
  7. BlueNext, China Exchange Partner on Carbon Credits
  8. World's Biggest Carbon Offset Exchange Comes One Step Closer To Reality As NYSE’s BlueNext And China-Beijing Environmental Exchange Sign China Partnership
  9. China: The First Chinese Standard for Voluntary Greenhouse Gas Offset