Modest start to Kyoto trade on Chicago exchange
NEW YORK (Reuters) - One contract representing Kyoto Treaty greenhouse gas reductions traded on the Chicago Climate Futures Exchange on Friday, the first such trade to take place in the United States, a trade source said.
The CCFE launched trade on the certified emissions reductions contract on Friday. December 2008 CER futures settled 25 cents weaker at $21.60.
One contract, representing a reduction of 1,000 metric tons of carbon dioxide equivalent, changed hands, the source said.
CERs represent emissions reductions under Kyoto's clean development mechanism projects that allow companies in rich countries that ratified the protocol to meet their emissions requirements by investing in the clean projects in developing countries.
Often the projects cut emissions by destroying greenhouse gases at places like coal mines and chemical plants.
CCX is a subsidiary of Climate Exchange Plc, which also owns the European Climate Exchange, the world's largest live carbon emissions trading market.