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Carbon Trading

Any trading system designed to offset carbon emissions from one activity (such as burning fossil fuels in manufacturing, driving, or flying) with another (such as installing more efficient technologies, planting carbon-reducing plants, or establishing contracts with others not to partake in carbon-releasing activities). The Chicago Climate Exchange (CCX) is the first and biggest carbon trading market in existence and is modeled on a stock market. Other programs, such as driveneutral.org also allow carbon trading for individuals without interfacing directly with the CCX or other trading systems.

When activities that reduce or capture carbon are paired successfully with those that produce it, these are said to be carbon neutral or climate neutral.

See Also: carbon_neutral   climate_neutral  

Comments

Is there an active carbon trading market in Europe? Is it bigger than the CCX?

Posted by: RBW at April 6, 2006 8:41 AM

There is a carbon trading market in the EU, now bigger than the CCX even. It's the ECX (European Climate Exchange): http://www.europeanclimateexchange.com/

Posted by: nathan at April 6, 2006 12:21 PM

Actually, there are many carbon trading markets in Europe. It turns out that Germany is the largest in Europe and the world. The CCX is the second largest. Should Canada implement its planned exchange, it would become the second largest with the CCX dropping to third place.

Posted by: chuck at April 6, 2006 10:40 PM

The European Climate Exchange (ECX), despite the fact that Kyoto has been ratified in most of Europe, is a subsidiary of the Chicago Climate Exchange (CCX) and, as Chuck states above, has less trading volume than the CCX, which ironically is completely voluntary.

Posted by: Jason at August 7, 2006 9:28 PM

This is a bit misleading however because EU countries trade freely within the group and even outside of it. So while the CCX may be in the top 5 markets in terms of transaction volume, the collective of countries trading within the EU far exceeds anything happening within other regions including the US.

Posted by: Kyle at January 25, 2007 7:56 AM

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