February 2008
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VOLUME CLOSING PRICES To tal Volume 2008 Vintage 2003 Vintage
(metric tons) ($ per metric ton)
CCX market data and news: www.chicagoclimateexchange.com
Program to
CFI Contract Feb. ‘08 Jan. 31 ‘08 Feb. 29 ‘08
Date
2003 Vintage 926,800 5,088,500 $2.45 $4.50
2004 Vintage 1,054,100 6,051,000 $2.45 $4.45 February 2008 Carbon News
2005 Vintage 1,169,300 7,334,700 $2.45 $4.45
U.S. News
2006 Vintage 1,920,500 9,074,000 $2.45 $4.45
Abbott Laboratories Joins CCX
2007 Vintage 1,618,000 7,951,200 $2.45 $4.50 Abbott Laboratories, a leading healthcare company, joined
2008 Vintage 754,100 3,767,700 $2.45 $4.50 CCX and committed to the CCX GHG reduction and trading
program. In 2007, Abbott became the first FORTUNE 500
2009 Vintage 978,000 4,105,500 $2.45 $4.50 Company to commit to going carbon neutral for its U.S. fleet
2010 Vintage 1,628,800 4,955,100 $2.45 $4.50 of vehicles. Abbott has also installed a 500 kilowatt solar panel
in its facility in South California capable of powering more than
Total 10,049,600 48,327,700 100 homes for a year. Abbott employs 65,000 people and mar-
kets its products to more than 130 countries.
The figures above represent all trades posted to the CCX trading platform.
Michigan State and University of Iowa Partner to Transact Carbon Credits According to the EIA, U.S. coal production is estimated to have fallen
Michigan State University and University of Iowa have agreed to a by 1.3% in 2007. Projected weak demand for coal in 2008 will result
transaction of 5,000 CO2 metric tons through the CCX program. in an additional 0.1% decline in coal production followed by a further
The purchase of credits will allow MSU to meet its CO2 reduction 0.8% decline in 2009. In the Western region, coal production is ex-
obligation under the CCX program and marks an innovative partner- pected to increase by 0.4% in 2008, but decrease by 1.4% in
ship between two public universities. 2009. Total coal stocks are estimated to have grown by 4.8% in 2007
to 196 million short tons. Total coal stocks are expected to fall by
US Carbon Market Predicted to Exceed $1 Trillion by 2020 0.6% in 2008.
Analysts at New Carbon Finance expect that the US carbon market
could grow to a value of $1 trillion based on expectations that a man- WTI crude oil prices, which averaged $72.32 per barrel in 2007, are
datory cap-and-trade scheme will be developed by the US govern- projected by the EIA to average $86.46 and $81.67 per barrel in 2008
ment within a five year time frame. and 2009 respectively. Regular grade gasoline prices, which averaged
$2.81 per gallon in 2007, are projected to average $3.07 and $2.97
CCFE Launches CFI Options Contracts per gallon, respectively, in 2008 and 2009.
Chicago Climate Futures Exchange launched CFI Options Contracts
on February 29, providing market participants a full suite of risk hedg- According to recent estimates by the EIA,, the number of cooling
ing tools in the CCX GHG emissions market. As of March 5 implied degree days in summer 2008 is projected to be about 10 percent
volatility for a call is 60% while implied volatility for a put is 43%. lower than they were last year. Lower power demand is therefore
projected, lowering growth in residential electricity sales this summer.
Total electricity consumption is expected to grow by only 0.4 percent
Global Carbon Market News in 2008 however returning to growth rates of 1.6 percent in 2009.
ECX to Launch CER trading on March 14th
The European Climate Exchange® (ECX) will launch futures trading
Energy Prices Table 2
for UN-regulated Certified Emission Reductions (CERs) futures on
March 14th. The Euro-denominated contracts representing 1,000 CER NATURAL GAS
credits will be physically deliverable in the UK registry. The first trad- & OIL JAN ’08 FEB ’08 AVG. % FEB 29 ’08
able contract will be for December 2008 delivery, followed by quar- FRONT MONTH AVG. CLOSE AVG. CLOSE CHANGE CLOSE
terly delivery dates – March, June, September and December. CONTRACT
Most EU Countries Miss CO2 Allowance Issuance Deadline Henry Hub Nat
$7.99 $8.64 +8.1% $9.37
Austria and Denmark were the only two EU countries to issue CO2 Gas
allowances to regulated companies in time to meet the annual Feb 28
deadline. Austria issued approximately 29 million allowances while WTI Light Sweet
Denmark issued 24 million allowances. The largely missed deadline Crude
$92.93 $95.35 +2.6% $101.84
resulted in few allowances being available for spot trading in the EU
ETS. Source: WTRG Economics
Carbon Financial Instrument® (CFI®) Futures on CCX carbon and Nitrogen Financial Instrument™ (NFI™) experienced record
months in trading volume during February. 1,391 CFI Futures contracts traded during February (representing 1.4 million metric
tons of CO2 equivalent). Records for daily traded volume in the CFI futures contract were set on February 14 with 231contracts
traded, and 221 contracts traded on February 6. In addition, 400 Nitrogen Financial Instruments™ (Annual) traded in February,
representing more volume than total prior trading volume since the contract launched. See Table 3.
CCFE launched options on CCFE CFI futures on February 29. This is the third options contract on CCFE and will provide market
participants with increased flexibility to hedge against price risks for CFI’s. 550 CFI options contracts traded on February 29. See
Table 4.
CFI® 1,391 798 74% 2,189 Not listed Not listed 2,187 2,039 7%
IFEX™ 200 1,510 -87% 1,710 Not listed Not listed 3,014 2,914 3%
NFI™-A 400 0 NA 400 Not listed Not listed 505 105 381%
SFI™ 28,373 29,695 -4% 58,068 19,348 200% 22,011 16,217 67%
Futures Totals 30,499 32,650 -7% 63,149 19,400 226% 27,949 18,469 51%
SFI™ 11,530 22,700 -49% 34,230 Not listed Not listed 37,440 31,300 17%
CFI 550 Not listed Not listed 550 Not listed Not listed 0 Not listed -
Totals 12,081 22701 -47% 34,782 Not listed Not listed 36,641 31301 17%
Two new emissions members joined ECX this month: Klima Invest A/S and Susquehanna International Group (SIG).
ECX will launch trading of UN-regulated Certified Emissions Reduction (CER) futures on March 14th. ECX will launch a total of 17
CER contracts including futures and multiple options expiration dates. The Euro-denominated contracts representing 1,000 CER
credits will be physically deliverable in the UK registry. The launch comes after ECX and LCH.Clearnet, its clearing house, came to
an agreement regarding the launch of UN carbon credits on its electronic exchange. ECX Chief Executive Patrick Birley said: “We
are delighted that all outstanding issues have been resolved and we look forward to the imminent launch of ECX CERs. We have
seen strong demand from the market for products based on CERs, which will trade alongside our successful ECX EUAs futures
and options, and we believe that liquidity will develop rapidly.”
Monthly Monthly
Contract Month End Avg Implied Total Volume Open Interest
Traded High Traded Low %∆ %∆
Month Settlement (€) Volatility (%) (Lots)2 (Lots)
(€) (€)