Climate Exchange trades mostly in England under the symbol CLE.L Apparently one can now buy the ADR's here. This is a company that is almost impossible to get information about. The Co Aims to provide investors with an opportunity to invest in environmental ventures that offer potential returns with a view to the realisation of each investment through future trade sale, floatation or other exit routes... It's CEO might be familiar to some of you Dr Richard Sandor. Dr Richard: specializes in developing and trading in new environmental, financial, and commodity markets. Environmental Financial also designs risk management and hybrid financial instruments that enhance the interrelationships between the capital, commodity, and environmental markets. Dr. Sandor is widely recognized as a founder of the interest rate derivatives markets now traded worldwide as well as catastrophe insurance derivatives. Most recently, he has designed revolutionary market mechanisms for market-based environmental protection programs. During 1997 and 1998 Dr. Sandor served as Second Vice Chairman - Strategy for the Chicago Board of Trade. Dr. Sandor held senior executive positions in the financial services industry. He was a senior financial markets executive with Kidder Peabody, Banque Indosuez and Drexel Burham Lambert. For more than three years, he was Vice President and Chief Economist at the Chicago Board of Trade, where he became known as the "principal architect of interest rate futures markets". Richard L. Sandor was honored by the City of Chicago and the Chicago Board of Trade for his contribution to the creation of financial futures and his universal recognition as the "father of financial futures". Can this be the " Carbon Trading " we have been hearing about. An anti pollution play? I'm not sure but if you like to hitch your horse to a CEO you can trust I don't think I'm going out on a limb when I say you could certainly entertain thoughts about buying this stock. I am but I hope you folks know more than me!
Here's a link to some blog that discusses the whole carbon trading deal. It states Goldman has invested 10% or $23M in the exchange. (I read somewhere else that they upped it to 19%). It's too PC for me, but smart money sure seems to have invested a ton. http://www.altenergystocks.com/archives/2006/10/carbon_financethe_next_bonanza_1.html
I'M still thinking long and hard about this one: Climate Exchange>> and this article from Feb 6 now makes the whole idea a backdoor China play. China gets its share of international criticism for its world-class air pollution, toxic river systems, and colossal energy inefficiency. And much to the chagrin of Beijing, its dirty dragon image seems likely to expand later in the decade when it is forecast to overtake the U.S. as the world's biggest emitter of greenhouse gases. However, China's decision on Feb. 6 to team up with the United Nations Development Program (UNDP) and launch the developing world's first carbon-credit exchange could alter that scenario. It's a diplomatically artful move by Beijing that will increase incoming foreign investment in green technology on the mainlandâand could be a game-changer for the $22 billion global trading market for carbon credits down the road. Anybody getting interested? Companies based in countries operating under the Kyoto Protocolâthe international pact regulating greenhouse gas emissionsâare hungry to do more deals in both environmentally-challenged China and India. The Kyoto Accord's so-called clean development mechanism program allows companies from the industrialized world to earn credits by investing in clean-energy projects in developing countries. So they don't have to really clean their air they just have to invest in companies elsewhere that do and get credits. Sounds lazy good! These developed-world companies then use the credits to meet their targets back homeâor sell them to corporate emission-belchers that haven't cleaned up their act and face future fines. CHINA! In the U.S., which of course refused to join the Kyoto deal, about 250 companies have agreed to voluntary emission-target reductions and trade carbon credits on the Chicago Climate Exchange. In China, most of the action so far is with European and Japanese companies that need to meet mandatory emission-reduction targets between 2008 and 2012. FUN FACT* China is alreadyâ¦supplying more than a third of the global supply of carbon credits, largely destined for countries and companies in Europe and Japan seeking to fulfill their Kyoto commitments. Through UNDP assistance to local partners in China, the design of a Chinese carbon-credit trading exchange will be started in 2007 with a pilot program perhaps ready by the end of the year to help develop a more liquid market for such credits.Trading on the Environment. Climate control experts are also encouraged by China's deeper involvement. The eventual launch of a China exchange will also contribute momentum to an already blossoming trading-market for carbon credits forecast by the World Bank to hit $30 billion by 2010. ($30 BILLION Folks!) The Chicago Climate Exchange and its affiliated European Climate Exchange are developing climate derivatives. New York financial services player XShares recently announced a deal with the Chicago climate bourse to create exchange-traded funds based on carbon-emissions credits. Morgan Stanley (MS) is investing $3 billion in carbon credits and other projects to limit greenhouse gas emissions. Goldman Sachs (GS) is a major investor in the British-listed Climate Exchange (CXCHF), the parent of the European and Chicago climate exchanges, which provide futures contracts and options contracts for emissions. THAT's US FOLKS!!! >> I mean it's one of those special parties without you and me. If you go to CLE.L you will get an easier picture of the company and the abilty to chart- I'd just buy it over there too if you can. What can I say I have no idea where you buy this-- it seems like it corrected a bit and reverse on Feb 14 ... across the pond as they say what do they denominate their trades into pounds? I'm sorry to be ignorant and too lazy to go to Google at the moment.. but the chart says 400 something on the left side and it goes straight up to 1200 something!!! Like I said- it's a private party but it's also the freakin future and this Climate Exchange is going to turn out to be the Google play in the green field mark my words. If they ever come list here with Goldman's help the IPO will have to be at a very high price to be sure.... What To Do
Under Kyoto, China was allowed to abstain from regulating their own CO2 emissions, but are allowed to produce the credits. The world's sweatshop is too important. Russia is similiar, not that they would even bother pressing regulations anyway. But there are a lot of Carbon funds producing credits and selling to Europe. US did sign the treaty but did not ratify. Australia, same thing. Basically Europe is the demand, the rest of the world is the supply. One thing to understand about Kyoto CO2 credits is that a few key players have been on top of it since the beginning. The opportunities were specifically geared toward the big money and were quickly eaten up. So be careful of overpublicized opportunity plays, cause in reality, they do not really need to look for your money if they really had something fruitful going on.
I found this input off a blog; kind of an interesting analogy: ----------------------- CLIMATE EXCHANGE PLC. A company traded on the AIM in Britain. This is the leading carbon credit exchange in the world. Global Warming is happening. It will continue to be a key policy issue. It is not going away. Goldman Sachs owns a large chunk of this company and Morgan Stanley is spending billions not millions to prepare of the blossoming carbon credit industry. Imagine owning Archipelago in 1999 and holding until the NYSE bought the company for about $2.4 billion in 2005 In January, 1999 executives at Goldman Sachs and E*Trade signaled their belief in the future of ECNs when they purchased a 25% stake in Archipelago.
Im probably going to regret sharing info, being that I am involved in this stuff. But I guess I gotta give back to ET sometime. Stonedinvestor shares good info so I will support the thread. You can find a lot of info on http://www.chicagoclimatex.com/. CCX is directly involved and associated with the UK entity, I think they are equal partners or smth. Good info here http://www.chicagoclimateexchange.com/news/press/release_20070123_TradingUpdateFinal_Dec2207.pdf What none of the news and the reports will tell you is that CO2, N2O, SO2 and the rest of the emissions have been tradeable on the ICE platform for a little bit. I think 4-5 years ago the pilot went into the effect. The truth is that the exchange volume has been dismal in comparison to the total volume. Most of it is done through brokers and direct agreements, a lot is kept "off market". This isn't ARCA and these are not stocks or futures. Different dynamics. Don't forget that everything is essentially government mandated. My first reaction when I first got involved was "someone should start an electronic exchange". After a while I saw the bigger picture. It will pick up and evolve, but do not make the mistake of equating a GHG emission exchange with an equity/options/futures exchange. Someday, yes, someday traders will be daytrading these instruments and speculation will be rampant to the point where the whole purpose of this movement will be lost among paper pushing & greed. But not today.
Hydro- what about a democratic president? Doesn't that mean we join treaties for carbon mandates? I see a publicity flow of info here on the whole concept- that may be more valuable than actual volume on the exchange. China and the Olympics, China's need to appear to be working on pollution problems... all bodes well carbon credits. As volume really picks up in the future won't CXCHF.PK just be swallowed by the big money that helped fund them?....