CME Revs Up for Surge in Carbon Credit Trading

Wall Street & Technology (Jul 1 2009) Cap and Trade , Emissions , Fossil Fuel

1. As the Senate debates the American Clean Energy and Security Act recently passed in the House that attempts to create a cap-and-trade scheme for carbon emissions in the U.S. similar to Europe's, the Chicago Mercantile Exchange has been ramping up its efforts to prepare for an expected surge in carbon credit trading. The climate-change bill would put a limit on the amount of carbon emissions a company can generate, but allow over-limit companies to meet their requirements by purchasing credits from those emitting less pollution than they're allowed. A voluntary carbon credit market already exists in the U.S.; the bill under debate would broaden the market to those who must buy carbon credits or face penalties (or drastically reduce their carbon emissions). (Read Full Article)

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