World's Biggest Carbon Offset Exchange Comes One Step Closer To Reality As NYSE’s BlueNext And China-Beijing Environmental Exchange Sign China Partnership

NYSE Euronext (NYX) today announced that BlueNext, its majority-owned environmental trading exchange, is partnering with the China-Beijing Environmental Exchange (CBEEX), the first state-level Chinese environmental rights trading platform, to set up an international carbon-trading related information platform.

Bluenext, the world’s largest “spot” trader of carbon credits supported by the world’s leading and most liquid exchange group, operates the world’s largest spot market for Certified Emissions Reductions (CERs). CBEEX is the gateway to China , the world’s largest market for Clean Development Mechanism (CDM) projects.

At an official signing ceremony today in Beijing , BlueNext and CBEEX signed an agreement that includes:

• A cross-marketing partnership;
• A comprehensive data sharing agreement that will promote investment- and buyer information of Clean Development Mechanism (CDM) projects in China ;
• BlueNext sharing its deep understanding of environmental trading knowledge and expertise with CBEEX to grow both markets internationally.

“This is another step in our wish to expand our market into the great potential that is China, and the rest of Asia; but also another step in our long held ambition to be the reference point for a single international price for carbon,” said Serge Harry, Chairman and CEO of BlueNext.

“NYSE’s Bluenext, as an American European company, is ideally placed to open up access to the largest buyers of CDM projects and CERs in the European and American markets,” said Darwin Zheng of CBEEX.

For background about CDM and CERs, please see the below.

Background about CDMs and CERs:

What is the CDM?

The Clean Development Mechanism (CDM) creates credits, Certified Emission Reductions (CERs), from emission abatement projects in developing countries.  CERs can be used for compliance in the European Emissions Trading Scheme (EU ETS) and other national schemes, such as in Canada and Japan .

Key Facts about CDM / CERs in China

• China had 84% market share in 2008 for the Primary CDM market
• Between 2002-2008, China accounted for 66% of all contracted CDM supply in the market
• From January 2008 to March 2009, the CDM pipeline in China grew steadily to about 1730 projects
• 800 Chinese projects entered the pipeline since January

Key Facts about CERs on Bluenext

• Price of CER Spot on Bluenext 16.6.09 – 10.75 Euros / Tonne ($14.89)
• Total volume of CER spots since August 2008 - 24 114 000 tonnes

(Source: Environmental Finance)