The Montreal Exchange and Chicago Climate Exchange, the first legally binding rules-based greenhouse gas emissions allowance trading system, made a joint announcement about the two exchanges’ intent to develop a new joint venture to create a Canadian environmental products market.
The announcement was made during the 11th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) being held in Montreal.
As part of the Letter of Intent, CCX and MX will develop trading, clearing, and registry services for Canadian environmental products. The first product base will provide cost-effective trading products for the Canadian carbon market. The announcement was made in Montreal during the 11th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC).
“This agreement is another historic step towards the integration and expansion of worldwide environmental markets,” said Richard L. Sandor, chairman and CEO of CCX. “It brings together the environmental and financial expertise of Chicago and Montreal to offer a suite of environmental financial products and services to the Canadian market. We believe the standardization and transparency of exchange-based markets will be of great interest to the Canadian corporate and financial sectors and will elp Canada to cost- effectively realize its global commitment to environmental leadership.”
The new Montreal Climate Exchange will provide market solutions to address the most serious environmental challenges, especially climate change and the build-up of greenhouse gases.
“The creation of the Montreal Climate Exchange is a concrete initiative that will accelerate the development of a structured environmental market in Canada,” said Luc Bertrand, president and CEO of the Montreal Exchange. “Combining MX’s unique position in Canada’s financial markets and CCX’s global leadership in environmental markets will result in innovation for the benefit of all Canadians and the environment.”