This makes Nord Pool the first regulated exchange to offer a global carbon product. The exchange said that listing certified emission reduction (CER) contracts represents an important contribution to the development of a secondary market for the product.
The contract is designed in accordance with the requirements of the EU Emissions Trading Scheme (ETS) directives, allowing European companies to comply with the system. The contract will also help governments to fulfill their emissions obligations under the Kyoto Protocol, Nord Pool added.
CERs are emission credits that are obtained when the recipient has achieved a reduction corresponding to one tonne of carbon dioxide or carbon equivalent greenhouse gas in a developing country.
The listing of CER contracts signals that we’ve made a long-term commitment to the development of a European and global carbon emission market. Together with our EU emission allowance contracts, we can offer today’s most comprehensive carbon emission market, said Nord Pool’s CEO, Torger Lien.
Listing of a tradable and clearable CER contract at Nord Pool is another innovative step in achieving our objectives by providing for an efficient means to transfer capital and technology throughout the global markets and to contribute to the Kyoto reduction targets, added Nyame de Groot, vice president of emissions for Essent Energy Trading.
The CER trade between Essent Energy Trading and Statoil initially covers the years 2008 and 2009 in the Kyoto period.
As a result of its new strategy, Nord Pool is the world’s first international commodity exchange for electricity, green certificates and European Union allowances.
