The European Energy Exchange (EEX) will expand its product range on the CO2 secondary market with spot contracts on Grey Certified Emission Reductions (Grey CER) and Green Certified Emission Reductions (Green CER).
Certified Emission Reductions are issued for climate protection projects (Clean Development Mechanism – CDM), which industrialised countries carry out in developing countries to reduce their emissions. Subject to the approval of the Exchange Council, EEX will offer CER Spot products from 5 December 2012. In this context, EEX will make two products available for trading: The Grey CER product will comprise certifi- cates from all projects involving the destruction of trifluoromethane (HFC-23) and nitrous oxide (N2O) from adipic acid production. The Green CER Product covers all projects which can be used at the respective delivery day for means of compliance ac- cording to the valid rules of EU ETS. Projects for the reduction of HFC-23, adipic N2O and large hydro projects i.e. hydropower generation projects with a generating capacity exceeding 20MW are excluded.
EEX, thus, provides continuity to the global emissions market in compliance with the market standard for these products.
Both products will be offered with a fee holiday for exchange trading fees until the end of the first quarter of 2013. The European Commodity Clearing AG (ECC) will provide clearing and settlement.
In addition to this, EEX will re-launch its previous “Carbix” CO2 index for the Spot Market. So far, the Carbon Index (Carbix) has been calculated in the auction on the Secondary Spot Market for EU Emission Allowances carried out on every exchange trading day. In the context of the new products, EEX will develop the index into a CO2 index family referred to as the “European Carbon Index – ECarbix”, the concept of which will also conceptionally cover the EUAA and CER Spot Market, in addition to the EUA
market. Considering the primary and secondary market, all calculations are based on a weighted volume of transactions on the spot market. EEX will begin with the introduction of an ECarbix (EUA).
Starting at 5 December 2012 a daily value will be published as well as a monthly average value. Thus, EEX provides market participants with a comprehensive price signal based on the established brand name Carbix, which can form the basis for a variety of contract configurations.
Together, EEX and Eurex offer their participants a platform for trading in CO Emission Allowances. In the framework of this cooperation, which was launched in December 2007, Eurex participants can trade the CO2 derivatives products listed on EEX and take part in the auctions through their existing infrastructure and a simplified admission process.
