MeadWestvaco is a lot greener than you think

Wednesday, 18 April 2007

Page 3 of 3 What is the Chicago Climate Exchange? The Chicago Climate Exchange, or CCX, is North America’s only, and the world’s first, greenhouse gas emissions registry, reduction and trading system for all six greenhouse gases. CCX is a self-regulatory, rules-based exchange designed and governed by CCX members. Members make a voluntary but legally binding commitment to reduce GHG emissions. By the end of December, 2006, all members had to have reduced direct emissions 4% below a baseline period of 1998-2001. Phase II, which extends the CCX reduction program through 2010, will require all members to reduce GHG emissions 6% below baseline. The goals of CCX are: • To facilitate the transaction of greenhouse gas emissions allowance trading with price transparency, design excellence and environmental integrity. • To build the skills and institutions needed to cost-effectively manage greenhouse gas emissions. • To facilitate capacity-building in both the public and private sectors to facilitate greenhouse gas mitigation. • To strengthen the intellectual framework required for cost-effective and valid greenhouse gas reduction. • To help inform the public debate on managing the risk of global climate change. The development of CCX was initiated through a feasibility study that was funded by the Chicago-based Joyce Foundation in 2000, a leading public policy philanthropy group. The grant was administered by Northwestern University’s Kellogg Graduate School of Management and conducted by Environmental Financial Products. As a predecessor to CCX, EFP specialized in developing and trading in new environmental, financial and commodity markets. It also designed risk management and hybrid financial instruments that enhance the interrelationships between the capital, commodity and environmental markets. EFP’s principals acted both as agents and advisors in a variety of environmental trades and capital markets transactions. They also authored numerous articles in academic and general interest publications. The study concluded that a North American private sector pilot greenhouse gas trading market was feasible. A subsequent grant in August 2001 funded the initiation of research on its market implementation. The research included: • Preparation of an initial market architecture. • Formation of a high-level advisory board. • Recruitment of industry to contribute to development of market rules. Source: The Chicago Climate Exchange << Start < Prev 1 2 3 Next > End >>