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LSE Green Forum Presentation: European Climate ExchangeTRANSCRIPT
European Climate Exchange
The Carbon Market:
Opportunities in a Growing Industry
LSE, 6th March 2009
22
About ECX: Europe’s leading Carbon Exchange
Climate Exchange PLC
(CLE)
European ClimateExchange (ECX)
Chicago Climate Exchange (CCX)
Chicago ClimateFutures Exchange
(CCFE)
3
Carbon – The Next Asset Class
Obama cap-and-trade quotes in 2009:
“We would put a cap and trade policy in place that is as aggressive if not moreaggressive than anyone out there”
“If somebody wants to build a coal-powered plant, they can. It's just that it willbankrupt them.“
4
Emission Trading – A Growing Market
4
* Source: ECX / ICE, MMT Energy. Data based on 2007 traded volume across major global commodity exchanges and excludes OTC volume.
“Market Churn”Ratio of Trading Volume / Physical Volume *
EU ETS trading volumes have grown roughly 106% annually between 2005 and 2008…
But carbon is still young compared to other commodity markets and has significant growth potential…
Exchange Traded Carbon Volume(in MM tons C02)
Source: Core Carbon group. Disclaimer: Cannot be reproduced or used without the express consent of Core Carbon Group. Core Carbon Group not responsible for inaccurate or incorrect information.
55
Price and volume – ECX Contracts• 94 million tonnes of CO2 traded in 2005 with a market value of €2.1 billion• 452 million tonnes of CO2 traded in 2006 with a market value of €9 billion• 1 billion tonnes of CO2 traded in 2007 with a market value of €17.5 billion• 2.8 billion tonnes of CO2 traded in 2008 with a market value of €51.3 billion
6
Who is the Carbon Market?
Hedgers
Speculators
Arbitrageurs
Investors
7
Where Next?
US ETS5,760Mt
EU ETS2,080Mt
Aus ETS445Mt
NZ ETS100Mt
Japan ETS Voluntary
China?Canada ETS400Mt
CERs bridge theRegional Schemes?
8
Thank You for Listening!
Sara StåhlDirector of Market Development
European Climate Exchange (ECX)
Tel: +44 (0)20 7382 7804Email: [email protected]: www.ecx.eu