View Full Version : 'Climate Exchange': Trading with the Planet

Sunday, July 27th, 2008, 11:35 PM
Now if I read this correctly it means that the large and rich companies can effectively ignore any emission cuts they are required to make, and companies can make money by deliberately setting low targets and then overachieving them. This is what capitalism does to environmentalism turns it into yet another way of making money. I can't say that I'm shocked but I do feel appalled.

LONDON (Reuters) - British carbon credit exchange operator Climate Exchange Plc said on Wednesday that trading volumes at its two main exchanges rose from a year ago, and it made progress with international expansion plans.

Climate Exchange owns, operates and develops exchanges to facilitate trading in environmental financial instruments such as emissions reduction credits. Its two main businesses are the Chicago Climate Exchange (CCX) and the European Climate Exchange


First-half trading volumes on the ECX gained 250 percent from year-ago volumes, while volumes on CCX advanced almost 400 percent in the same period, the company said.

Overseas, trading began at the Montreal Climate Exchange, a joint venture CCX struck with the Montreal Exchange, while in India, trading began at the Multi Commodity Exchange.

It is also in "ongoing discussions" for opportunities in China, Climate Exchange said.

On carbon credit exchanges, firms agree to cut their production of carbon and other greenhouse gases linked to global warming by an amount that then becomes legally binding.

If they cut emissions more than targeted, they can sell the credits this generates to firms that over-pollute.


Monday, July 28th, 2008, 10:55 AM
It sounds good in theory: by charging companies to pollute and making the 'licenses' available on the open market, those who can make the best use of their pollution allowance will be able&willing to pay the most for the license to release emissions.

From what I understand, what has in fact happened is that this program has turned into yet another program to transfer wealth from productive countries (most of them Germanic) to unproductive third world countries.

This might work on a national or local scale as opposed to a global one, for example certain river basins, determine what amount of pollution is acceptable, and then let the companies fight over eachother for who has the right to pollute, and on an open market those able to provide the most good in return for the pollution will be able to bid the highest.