EEX and Eurex to launch CER carbon futures

The European Energy Exchange (EEX) and derivatives exchange Eurex will launch futures on certified emission reduction (CER) carbon credits on EEX on March 26.

To provide incentives for trading, the trading fees (exchange trading and over-the-counter registry) will be waived for the entire year 2008. Eurex members have been able to trade futures on the carbon credit associated with the European Union’s Emissions Trading Scheme (EU ETS) - EU Allowances (EUAs) - since they were listed on the EEX on December 5, 2007.

"For our market participants, CER contracts will be a valuable complement to existing EUA futures," said Peter Reitz, Eurex executive board member.

CERs are issued under the Kyoto Protocol for climate protection projects that industrialised nations carry out in developing countries. One CER is equivalent to one tonne of carbon dioxide reduction. CERs can now be used in part for emissions reduction compliance under the EU Emissions Trading System.

EEX and Eurex plan to launch the options on EUA futures in the second quarter of 2008.

See also: UBS launches Greenhouse Index
Barclays launches carbon trading index