The consultation period for a plan by Hong Kong Exchanges and
Clearing to introduce carbon derivatives is set to end on
HKEx plans to offer futures on Certified Emissions
Reductions — the UN-sponsored credits that allow
companies to exceed their pollution limits if they sponsor
projects in the developing world that are judged to be
The future, denominated either in euros or US dollars, is
expected to cover physical delivery of 1,000 CER credits. The
exchange has not said when the futures might be introduced.
The exchange is considering a delivery mechanism whereby CER
permits would be delivered directly by the seller to the buyer,
although the process would be guaranteed by the exchange.
Possible alternatives are delivery via the
exchange’s clearing house holding account in an
overseas national registry, or through an agent appointed by
HKEx to handle delivery between buyers and sellers.
HKEx’s board first considered the idea of
offering carbon derivatives in 2006. The following year, it
appointed Australian law firm Mallesons Stephen Jaques as well
as Climate Focus and International Environmental Trading Group
to do a feasibility study. n
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |