Anthony Arcone, director of environmental services at Icap, said: “We will apply our experience and leadership in financial markets to help increase liquidity, alleviate credit concerns, and further the exchange’s mission to grow carbon trading domestically.”
CCX was created to help North American companies reduce their greenhouse gas emissions cost-effectively. It is the first multi-national, multi-sector and legally binding market-place for such trade. Companies that sign up are given a ‘baseline’ level of greenhouse gas emissions. Their target is then to reduce these emissions, typically by 1% per year. If they manage to reduce by more than the target, they can sell the extra allowance on the exchange. Conversely, companies who fail to reduce their emissions must purchase extra allowance from the exchange.