The Chicago Climate Exchange has a new competitor. The New York Mercantile Exchange has launched The Green Exchange for trading carbon emissions and other environmental products, The Wall Street Journal reports.
Green Exchange partners include heavyweights such as Evolution Markets Inc., Morgan Stanley Capital Group Inc., Credit Suisse, JPMorgan, Merrill Lynch, Tudor Investment Corp., ICAP and Constellation Energy.
The new exchange says it will offer a comprehensive range of environmental futures, options, and swap contracts for markets focused on solutions to climate change, renewable energy, and other environmental challenges.
The Green Exchange products are expected to begin trading during the first quarter of 2008 and will be cleared by Nymex. The Green Exchange venture is expected to launch as a U.S. Commodity Futures Trading Commission regulated exchange during the first quarter of 2009, pending regulatory approval.
Initially, The Green Exchange intends to offer trading in global carbon-based contracts, such as carbon allowances under the European Union Emissions Trading Scheme, carbon credits under the U.N. Clean Development Mechanism, and verified greenhouse gas emission reductions used in accordance with voluntary carbon standards. The Green Exchange will also offer contracts for U.S. SO2 and NOx emissions allowance trading programs, as well as contracts for national Green-e certified voluntary renewable energy certificates.
The Green Exchange says it intends to offset all of its electricity use with Green-e certified renewable energy credits, and intends to offset its remaining non-power related carbon emissions through the purchase of voluntary carbon credits.