Reuters reported good news for the carbon traders of the world today. For three months (beginning September 2nd), NYMEX’s The Green Exchange will waive trading fees for all emissions futures and options, including European Union carbon permits.
NYMEX (the New York Mercantile Exchange) launched The Green Exchange in 2008, partnering with Evolution Markets, Morgan Stanley Capital Group, Inc., and other heavyweights, in an effort to tap into the $126 billion carbon trading market. (NYMEX was the first exchange group after the Chicago Climate Exchange to launch a U.S. carbon exchange.) According to its website, the Exchange is committed to operating as a 100 percent carbon-neutral corporation.
At The Green Exchange’s inception, market experts predicted it would dominate carbon trading in the U.S., where the regional emissions market (called the Regional Greenhouse Gas Initiative [RGGI]) is relatively new. According to an Environmental Leader report, the Exchange planned to offer trading in global carbon-based contracts (including ones under the EU Emissions Trading Scheme), carbon credits under the U.N. Clean Development Mechanism, verified greenhouse gas emission reductions (in accordance with voluntary carbon standards), and emissions allowance trading and voluntary renewable energy certificates in the U.S. Currently, the Exchange also trades futures contracts in nitrogen oxide and sulfur dioxide emissions.
The Green Exchange traded less than expected, however, hence (perhaps) its fee-waiving maneuver.