Exchange leaves carbon
Written on March 17, 2008
The Montreal Exchange said yesterday that it plans to launch a futures market for Canadian carbon dioxide emissions on May 30, subject to regulatory approval.
The exchange, which runs Canada’s market for interest rate, index and equity derivatives, plans to run the Montreal Climate Exchange as a joint venture with the Chicago Climate Exchange.
The two partners announced their plan to launch Canada’s first exchange-traded carbon emissions contract in July 2006, and based on previous statements they had hoped to have it up and running before now.
The federal government gave more details about its emissions regulations earlier this week.
"The government of Canada has provided greater regulatory certainty regarding intensity-based emissions reduction targets and the definition of a single compliance standard for tradable credits," Luc Bertrand, president and chief executive of the Montreal Exchange, said in a statement.
The exchange expects to get approval for the carbon futures contract from Quebec’s financial markets regulator "in the near future."
The Montreal Exchange is in the midst of being acquired by Toronto Stock Exchange parent TSX Group.
On Thursday, a senior TSX Group executive said the type of carbon emission caps chosen by the federal government may shrink the potential market for trading credits and put the country out of step with other nations.
The federal government’s system could have limited compatibility with emissions trading in other jurisdictions, said Rik Parkhill, interim co-chief executive of TSX Group.
He also said a national market for carbon emissions would be preferable.
British Columbia and Manitoba are working with U.S 500 fast cash. states to develop a regional trading market for carbon emission credits.
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