ECX and ICE Futures Europe Propose Changes to Contract Rules for the ICE ECX CFI Futures contract in line with implementation of Kyoto Protocol
Following the implementation of the Kyoto Protocol, when a carbon emissions allowance is issued under the EU Emissions Trading Scheme (EU ETS) an equivalent assigned amount unit is issued under the Kyoto Protocol. Consequently, when a carbon emissions allowance is transferred in the Community Independent Transaction Log (CITL), a mirror transfer occurs within the UNFCCC International Transaction Log (ITL), thereby allowing the UN to monitor the compliance against the Kyoto Protocol targets.
The changes proposed reflect the connection between the CITL and the UNFCCC ITL and any issues relating to the failure of this link (e.g. in the context of Force Majeure). However, it should be noted that the EU Commission has announced that the UNFCCC ITL will not be linked to the CITL until March 2009 at the latest, and, until such time that the two systems are linked, the EU ETS and the CITL will operate in the usual manner.
Should any parties wish to object to or comment on the proposed changes to the rules, these written objections must be received by the Secretary within seven days of the date of this Circular. In the absence of any such request the proposed changes will come into effect on Monday 18 February 2008.
For more information please contact ECX or ICE Futures Europe.
