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MCX launches trading in carbon credits
By admin | January 23, 2008

Futures trading in carbon credits were today plunged by Multi Commodity Exchange (MCX), the country's largest commodity exchange, - one of the fastest emerging impalpable commodities in developing countries including India.

Carbon credits in the trading unit are fixed at 200 tonne. Five annual contracts are accessible today on the platform with several expiries on 15 December 2008, Dec 2009, Dec 2010, Dec 2011 and Dec 2012. It has fixed the tick size at Re 0.50 per tonne while decision has been taken by the exchange to ease delivery on the expiry of the several contracts.
It is making the enterprise Asia's first-ever commodity exchange and amid the select few along with the Chicago Climate Exchange and the European Climate Exchange offering trades in carbon credits.
MCX, deputy managing director, Joseph Massey said: “The launch of carbon credits is significant as more and more countries are adhering to global carbon emission norms".
The initiative is releasing carbon credits in the developing world by using cleaner technologies and saving on energy consumption. Their greenhouse gas emissions are therefore cut down by this. A carbon emission certificate is released to an organization for each reduced tonne of carbon dioxide emission, which can either be sold instantly or through a future market by it, just like any other commodity. UN-mandated international convention on climate change permits anyone to carry out carbon trading.
The executive board of Clean Development Mechanism issues carbon credits, or carbon emission reduction certificates under the Kyoto Protocol ? the highest international body authorized to register projects and issue credits.

标签： commodity trading