Carbon emissions trading could become the leading derivatives product in world markets as Asian and US businesses lower their emissions, increasing the competition between exchanges, reports the Financial Times, quoting Bart Chilton, a commissioner at the US Commodity Futures Trading Commission.
The publication reported that, according to Mr Chilton’s analysis, carbon emissions trading in the US and Asia remains limited and has scope for rapid growth.
Mr Chilton said that increasing pressure to limit industrial emissions, increased competition and co-operation between exchanges could help in creating regional carbon trading markets in Asia and the US, on par with their European counterparts, reported the news source.
Mr Chilton, as quoted by the Financial Times, said: I can certainly see carbon becoming the biggest of any derivatives product in the next four to five years. And that would of course mean overtaking treasury bills and any contract that is out there right now.