| Type | Environmental (carbon) exchange |
|---|---|
| Location | Paris, France |
| Founded | December 2007 |
| Closed | December 2012 |
| Owner | NYSE Euronext (60%) Caisse des Dépôts (40%) |
| Commodities | emission allowances and emission credits |
| Indices | EUA 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.
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 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 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]
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.
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.
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.
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.
European Energy Exchange (EEX) AG is a central European electric power and related commodities exchange located in Leipzig, Germany. It develops, operates and connects secure, liquid and transparent markets for energy and related products, including power derivative contracts, emission allowances, agricultural and freight products.
NYSE Euronext, Inc. was a transatlantic multinational financial services corporation that operated multiple securities exchanges, including the New York Stock Exchange, Euronext and NYSE Arca. NYSE merged with Archipelago Holdings on March 7, 2006, forming NYSE Group, Inc. On April 4, 2007, NYSE Group, Inc. merged with Euronext N.V. to form the first global equities exchange, with its headquarters in Lower Manhattan. The corporation was then acquired by Intercontinental Exchange, which subsequently spun off Euronext.
Intercontinental Exchange, Inc. (ICE) is an American company formed in 2000 that operates global financial exchanges and clearing houses and provides mortgage technology, data and listing services. Listed on the Fortune 500, S&P 500, and Russell 1000, the company owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces. This includes ICE futures exchanges in the United States, Canada and Europe, the Liffe futures exchanges in Europe, the New York Stock Exchange, equity options exchanges and OTC energy, credit and equity markets.
A mobile emission reduction credit (MERC) is an emission reduction credit generated within the transportation sector. The term “mobile sources” refers to motor vehicles, engines, and equipment that move, or can be moved, from place to place. Mobile sources include vehicles that operate on roads and highways ("on-road" or "highway" vehicles), as well as nonroad vehicles, engines, and equipment. Examples of mobile sources are passenger cars, light trucks, large trucks, buses, motorcycles, earth-moving equipment, nonroad recreational vehicles (such as dirt bikes and snowmobiles), farm and construction equipment, cranes, lawn and garden power tools, marine engines, ships, railroad locomotives, and airplanes. In California, mobile sources account for about 60 percent of all ozone forming emissions and for over 90 percent of all carbon monoxide (CO) emissions from all sources.
Certified emission reductions (CERs) originally designed a type of emissions unit issued by the Clean Development Mechanism (CDM) Executive Board for emission reductions achieved by CDM projects and verified by a DOE under the rules of the Kyoto Protocol.
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.
The Weighted average cost of carbon is used in finance to measure a firm's specific cost of carbon. It expresses how much an organization is expending to either reduce carbon emissions internally or offsetting externally. As such, the weighted average cost of carbon is the cost a company incurs to balance its carbon liability.
The Chinese national carbon trading scheme is an intensity-based trading system for carbon dioxide emissions by China, which started operating in 2021. This emission trading scheme (ETS) creates a carbon market where emitters can buy and sell emission credits. The scheme will allow carbon emitters to reduce emissions or purchase emission allowances from other emitters. Through this scheme, China will limit emissions while allowing economic freedom for emitters. China is the largest emitter of greenhouse gases (GHG) and many major Chinese cities have severe air pollution. The scheme is run by the Ministry of Ecology and Environment, which eventually plans to limit emissions from six of China's top carbon dioxide emitting industries. In 2021 it started with its power plants, and covers 40% of China's emissions, which is 15% of world emissions. China was able to gain experience in drafting and implementation of an ETS plan from the United Nations Framework Convention on Climate Change (UNFCCC), where China was part of the Clean Development Mechanism (CDM). China's national ETS is the largest of its kind, and will help China achieve its Nationally Determined Contribution (NDC) to the Paris Agreement. In July 2021, permits were being handed out for free rather than auctioned, and the market price per tonne of CO2e was around RMB 50, far less than the EU ETS and the UK ETS.
China Beijing Environmental Exchange (CBEEX) is a corporate domestic and international environmental equity public trading platform initiated by the China Beijing Equity Exchange (CBEX) and authorized by the Beijing municipal government.
Hong Kong Mercantile Exchange was an electronic commodities exchange established in Hong Kong for the trading of commodity futures, options and other financial derivatives. The exchange was originally pitched as a platform to trade oil futures. In fact, it ended up trading mainly silver and gold futures.
LCH is a British clearing house group that serves major international exchanges, as well as a range of OTC markets. The LCH Group consists of two subsidiaries: LCH Ltd based in London and LCH SA based in Paris.
Richard L. Sandor is an American businessman, economist, and entrepreneur. He is chairman and CEO of the American Financial Exchange (AFX) established in 2015, which is an electronic exchange for direct interbank/financial institution lending and borrowing. The AFX flagship product, the AMERIBOR benchmark index, reflects the actual borrowing costs of thousands of regional and community banks across the U.S. and is one of the short-term borrowing rates, along with the Secured Overnight Financing Rate, vying to replace U.S. dollar Libor as a benchmark in the U.S.
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