Canada's first Climate Exchange prepares to begin operating in Montreal
The Montreal Exchange (MX) has joined with the Chicago Climate Exchange (CCX(R)) to establish the Montreal Climate Exchange (MCeX), finalizing a preliminary agreement signed last December during COP-11/MOP-1, the Conference of Parties to the United Nations Framework Convention on Climate Change (UNFCCC) and the first meeting of parties to the Kyoto Protocol.
As the first environmental products market in Canada, the new exchange combines the expertise of the MX, Canada's financial derivatives exchange, with that of CCX, a leader in building and operating environmental markets and operator of the only global greenhouse gas emissions trading system.
"The Montreal Climate Exchange will accelerate the development of a structured environmental market in Canada," said MX president and CEO Luc Bertrand. "Since our first announcement, last December," he added, "We have received a multitude of requests for information...The Canadian industrial and financial communities are ready to welcome market-based solutions, and the Montreal Climate Exchange will provide those solutions."
The mission of the Montreal Climate Exchange is to offer price transparency, environmental integrity, reliability and low-cost, broad-based access to the many sectors of the Canadian economy involved in air quality and climate change issues. The new Exchange will benefit from the experience of MX in advanced trading systems, clearing, market regulation and financial risk management.
CCX will contribute its experience in operating the Chicago Climate Exchange, North America's first and only exchange of its kind, functioning as an integrated, legally binding, multi-sectoral, rule-based greenhouse gas emission registry, reduction and trading system. It was the world's first and is now the second-largest live market in the world.
CCX members reflect a cross-section of major public and private-sector North American organizations, among them Abitibi-Consolidated, Manitoba Hydro, Ford, IBM and DuPont, along with cities such as Chicago, Oakland (California), Boulder (Colorado) and Portland (Oregon) and non-industrial environmental organizations such as the World Resources Institute and the Rocky Mountain Institute. The European Climate Exchange (ECX), a CCX subsidiary, is now the largest exchange operating in the European Union emissions trading system.
Emissions reductions achieved through the CCX market are significant in scale and impact. CCX members gain practical experience by building an efficient emissions management and monitoring system, while also acquiring cutting edge measurement and trading skills that will be needed in the short and long term in order to deal with the climate change challenge.
"Establishing the Montreal Climate Exchange will place Canada in a strong position to confront environmental challenges in a cost-effective market-based manner," said Dr Richard Sandor, CCX founder, chairman and CEO. "MCeX is a significant advance in the global integration and expansion of environmental markets," he continued, adding, "This new Exchange will combine the environmental and financial expertise of Chicago and Montreal to offer an attractive suite of environmental financial products and services to the Canadian market."
Bertrand said the new Exchange looks forward to Canada's forthcoming plans for greenhouse gas emissions reduction, including the federal government plan, expected in the fall.
"We are confident that our approach offers the wide flexibility and quality required to advance a variety of ideas and regulatory frameworks. Our partner, CCX, has already developed systems that operate in the disparate regulatory environments of the US and Europe. We feel we are well prepared to help develop a uniquely Canadian approach to benefit Canada as a nation and the world generally," he said.
The Montreal Exchange is Canada's oldest exchange, and and is fully electronic, offering individual and institutional investors risk management and information technology products, together with a wide range of services, including trading, training, market information, market operations and regulations.
More information on the MX or the MceX is available from Jean Charles Robillard, 514/871-3551, E-mail firstname.lastname@example.org, on the Chicago Climate Exchange from Rafael Marques, 312/554-3384, E-mail email@example.com.