The Montreal Climate Exchange (MCeX) recently announced
that, subject to regulatory approval, on May 30, 2008 it plans
to launch trading of its first environmental product, namely
futures contracts on Canada carbon dioxide equivalent (CO2e)
units. The MCeX set the launch date after the federal
government's March 10, 2008 release of further details
of its greenhouse gas emissions regulations.
It is expected that the emissions reductions credits and
offset credits under the federal government's proposed
greenhouse gas regulatory scheme will be the two sources for
futures contracts on Canada CO2e units. Units of each of these
two types of domestic credits (which will represent an
equivalent emission of one metric tonne of CO2e) will be the
underlying interest of the CO2e futures contracts traded on the
The MCeX was created in 2006 through a joint venture between
Montreal Exchange and the Chicago Climate Exchange. The MCeX
aims to become the leading market for publicly-traded
environmental products in Canada. In October 2007, the MCeX
filed an application with its lead regulator, the
Autorité des marchés financiers (AMF), requesting
approval of market rules designed to govern the trading of MCeX
environmental products on its electronic trading platform
SOLA®. A decision on its AMF application is expected in the
The MCeX has cited World Bank estimates to the effect that
the world market for carbon amounts to about US$100 billion and
that trading activity on public carbon markets has grown
rapidly in recent years to reach US$30 billion in 2006.
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