TRADING CO2 CARBON EMISSIONS
Genuine Trading Solutions provides greenhouse gas and carbon emissions trading
and hedging in support of the Kyoto Protocol, the Regional Greenhouse Gas Initative (RGGI), Western Climate
Initiative (WCI) and other local initiatives. Due to our specialty in the field of risk management and hedging, we have
formed a special relationship with our partners at Eurex for exchange trading of CO2
Carbon Emissions and Credits.
We Actively Trade The Following Carbon Emission Products:
EUAs - European Emission Allowances;
CERs - Certified Emission Reduction Credits;
VERs - Voluntary Emissions (country specific);
CFI - Carbon Financial Instruments;
SOx - Sulphur Emissions;
NOx - Nitrogen Emissions;
We provide professionally managed trade execution services and regulatory compliance consulting to all institutions
and accredited investors. This includes corporations, hedge funds and any institution requiring the purchase or sale of greenhouse
gas emissions and their credits (EUA's and CER's).
Genuine Trading Solutions provides direct exchange access to Eurex for trading European Emission Credits and to
both the Chicago and Montreal Climate Exchanges for trading of North American greenhouse gas emissions. In addition, we
provide OTC (Over The Counter) brokerage of carbon off-sets.
TRADING CER AND EUA'S ON EUREX
Certified Emission Reductions ("CER") are project credits flowing into the global compliance market and are generated through
emission reductions from the CDM (Clean Development Mechanism) projects. A number of countries and companies will make use
of project credits from CDM and joint implementation projects to be in compliance with their Kyoto targets. Reducing emissions
outside one's own site or country (external abatement) can be a cost effective alternative to internal abatement.
EUAs are European Union Allowances, which permit the holder to emit one tonne of carbon dioxide. EUAs are issued under
the European Union Emission Trading Scheme (EU-ETS), which was established by member
states in the EU as a mechanism to meet their commitments to
reduce carbon dioxide emissions agreed
in the Kyoto Protocol Agreement.
MONTREAL CLIMATE EXCHANGE
The Montréal Climate Exchange (MCeX) is
a joint venture between the Montréal
Exchange (MX) and the Chicago Climate
Exchange®. The futures contract is based
on 100 Canada carbon dioxide equivalent
(CO2e) units. Each unit, as defined by the Government of Canada, allows for the emission of one metric ton of carbon dioxide equivalent (CO2e).
The government of Canada has established mandatory reduction targets starting in 2010. Thus, paving the
way for a national registry and penalties for non-compliance. Many companies are undertaking an early start to voluntary tracking
and trading of their emission output levels.
CHICAGO CLIMATE EXCHANGE
CCX is North America's only cap and trade system for all six greenhouse gases, with global affiliates and projects worldwide.
A commodity contract represents 100 metric tons of CO2 equivalent. CFI contracts are comprised of Exchange Allowances and Exchange
Off-Sets.
The Chicago Futures Climate Exchange, a subsidiary of CCX offers trading to other greenhouse gases and products such as:
- Dow Jones Sustainability World Index (DJSI-W) Futures
- ECO-Clean Energy Index (Eco-Index) Futures
- Nitrogen Financial Instrument Ozone-Season (NFI-OS) Futures
- Nitrogen Financial Instrument Annual (NFIA) Futures
- Regional Greenhouse Gas Initative (RGGI) Futures
- Sulphur Financial Instrument (SFI) Futures
EUROPEAN CLIMATE EXCHANGE
Trading on ECX began in April 2005, when futures contracts launched on European carbon dioxide emissions, known as EU
Allowances, with options on EUAs following in October 2006. Futures and Options on CERs were introduced in 2008, further cementing ECX's position as
the industry benchmark for carbon trading globally.
AUSTRALIA CLIMATE EXCHANGE
Since Australia's recent ratification of the Kyoto Protocol, the focus of ACX has been to provide an international market place
for trading CERs and providing a forum and support to the Australian VER market.
TIANJIN CLIMATE EXCHANGE (China)
The Tianjin Climate Exchange will implement the Binhai Comprehensive Reform Plan approved on March 2008 by the State Council of the
Peoples Republic of China to facilitate the Clean Development Mechanism and establish an emissions market in Tianjim Binhai
New Area. In 2006, Tianjin Binhai New Area was designated by the State Council of the PRC as the national experimental zone for
comprehensive refirms related to financial innovation, land and administrative management.
