Cost of GHG Rises on Chicago Climate Exchange (CCX)

Chicago Climate Exchange (CCX) has seen a rise in the cost of greenhouse gas (GHG) emissions reduction credits.  On January 15th of this year the prices closed at about $2.15/ton, but yesterday the closing price was $3.90/ton.

According to wikipedia.com, "CCX is North America's only voluntary, legally binding (GHG) reduction and trading system for emission sources and offset projects in North America and Brazil.

"CCX employs independent verification, includes six greenhouse gases, and has been trading greenhouse gas emission allowances since 2003. The companies joining the exchange commit to reducing their aggregate emissions by 6% by 2010."

The member organizations of CCX enter legally binding agreements to cut emissions in a specified amount of time.  If reductions are made sooner than expected, extra credits are generated that can be sold or saved.  If reductions are not made in the specified amount of time, the organization is required to purchase credits through the exchange.

By Cassi Darwin
cdarwin@enviance.com