Following the launch of the first standardized certified emission reduction contract in June 2007, the Nordic power exchange, Nord Pool, has announced that it has traded and cleared contracts exceeding 1.7 million tonnes carbon dioxide with volumes in steady growth.

Nord Pool launched the contract following requests from the market, and said that it has experienced a successful start to its trading of certified emission reduction (CER) contracts, which are awarded when the recipient has achieved a reduction corresponding to one tonne of carbon dioxide or carbon-equivalent greenhouse gas in a developing country.

Nord Pool said that the increase in exchange trade volume from June to July 2007 was 334% (145,000 tonnes against 485,000 tonnes). In addition, with just a third of August passed, the total turnover has already exceeded July, the exchange revealed. So far, total trade at the exchange has been 1.13 million tonnes CER.

Torger Lien, CEO in Nord Pool ASA states, said: The market has welcomed the new global carbon contracts and we believe it is very important that the members can trade and clear standardized CER contracts in a secondary market. The CER contract enables European companies to comply with the purposes under the European Union’s emissions trading scheme and governments to fulfill their obligations under the Kyoto protocol.