Carbon Trading 65% Off Lows

Thursday, July 09, 2009

The European Climate Exchange (ECX) is the leading marketplace for trading carbon dioxide (CO2) emissions in Europe and internationally. Prices for carbon steadily declined over the past year along with most other traded markets falling from the high $20s to a low of $8.06 in February. Since the low carbon allowance contracts are trading up 65% for an average price of $13.35 as of yesterday.

Carbon trading is dominated by European exchanges but the United States is seeing impressive growth while awaiting legislation from Congress. The European Climate Exchange is owned by Climate Exchange Plc, traded under symbol CLE on the London Stock Exchange's AIM market. CLE also owns the Chicago Climate Exchange and the Chicago Climate Futures Exchange here in the US in hopes that it can take a foothold in the developing US market.

Carbon credit markets seem to be the inevitable future and TWS is dedicated to educating its readers on developments in these markets. While having been seen as a future possibility for some time now, the recent legislation in Congress leads us to believe that this market may become much more highly developed sooner rather than later. More to come in future months.


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