Carbon Trade Exchange to enable ‘clean power’ allowances

Carbon Trade Exchange (CTX), the largest electronic spot trading exchange for global carbon credits, today announced the launch of a new centralized exchange platform to buy and sell allowances from the Regional Greenhouse Gas Initiative (RGGI). RGGI is the first mandatory cap-and-trade program in the United States to limit carbon dioxide (CO2) from the power sector.

Now open for membership applications, the new CTX RGGI Exchange provides the first exchange for intra-day spot trading of RGGI units for compliant entities and institutional investors. The Exchange electronically connects with Wells Fargo, ensuring the safe, secure and easy management of participant funds and will enable same-day delivery of RGGI units/allowances.

First introduced in January 2009, RGGI is a cooperative effort among the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont. On June 2, 2014 the Environmental Protection Authority (EPA) proposed the Clean Power Plan which aims to reduce America’s emissions with a 30% cut from 2005 levels by 2030.

The secondary market for RGGI allowances has grown rapidly and is expected to continue to grow dramatically given the increasing number of non-compliant entities buying allowances in the quarterly auctions. For power producers, banks, traders and investors needing to buy or sell RGGI allowances, the new CTX RGGI Exchange is a secure, centralized market, enabling a higher degree of transparency, liquidity and market efficiency.  

“We are incredibly excited to see how cap-and-trade programs are making an impact on North American carbon emissions, an issue that is increasingly important around the world,” said Nathan Rockliff, President of CTXUSA.  “CTX is expanding its suite of global carbon trading platforms with the launch of the RGGI Exchange in the US. We are relentlessly committed to providing liquidity and transparency to market participants and enabling companies to address climate change as a part of their broader sustainability plans.” 

Following the successful launch of CTX in North America in 2014, CTX continues to build its strategic relationships with APX Environmental Registry and the major voluntary carbon standards including Gold Standard, VCS, Climate Action Reserve and American Carbon Registry. CTX also recently announced a partnership with the Minneapolis Grain Exchange (MGEX) to facilitate the launch of CTX in the California cap-and-trade program. As part of its continued North American growth, CTX recently expanded into a new office at 125 Park Avenue in New York City.