Is carbon trading making a comeback?
Officials at the Carbon Trade Exchange (CTX), an electronic spot trading exchange for global carbon credits, hope so.
CTX has just launched a platform to buy and sell allowances from the Regional Greenhouse Gas Initiative (RGGI), officials say. RGGI is the first mandatory cap-and-trade program in the United States to limit carbon dioxide (CO2) from the power sector. Formed in 2009, RGGI is a cooperative effort among the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rohde Island and Vermont.
The secondary market for RGGI allowances has grown rapidly and is expected to continue to expand given the increasing number of non-compliant entities buying allowances in the quarterly auctions, CTX officials say.
The new CTX RGGI Exchange, which is accepting membership applications, provides the first venue for intraday spot trading of RGGI units for compliant entities, officials say. The exchange connects automatically with Wells Fargo, “ensuring the safe, secure and easy management of participant funds” and enabling “same-day delivery of RGGI units/allowances,” according to a company statement.
“We are incredibly excited to see how cap-and-trade programs are making an impact on North American carbon emissions, an issue that is increasingly important around the world,” says Nathan Rockliff, president of CTXUSA, in a prepared statement. “CTX is expanding its suite of global carbon trading platforms with the launch of the RGGI Exchange in the U.S. We are relentlessly committed to providing liquidity and transparency to market participants and enabling companies to address climate change as a part of their broader sustainability plans.”
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