ICE Ends "Cap and Trade" System of Chicago Climate Exchange
November 17, 2010
Intercontinental Exchange said Wednesday that it is closing down the “cap and trade” system for controlling greenhouse gas emissions that is the hallmark feature of the Chicago Climate Exchange.
The cap-and-trade system, where companies agreed to limit their emissions and were forced to trade for credits if they exceeded their limits, will end at the end of December, ICE said.
The “cap and trade” system will be replaced by an offsets registry, which will start next year.
With such a registry, companies that are investing in emission-reduction programs of different sorts can sign up to receive credits for their efforts. Those credits then can be used on environmental compliance programs that other private or public entities set up.
The New York Times Wednesday attributed the closure of the cap-and-trade exchange to lack of interest, after Congress did not take action on limiting emissions.
Members of the exchange included DuPont, Motorola, I.B.M. and other major companies.
“The bulk of the users have said to us that they really don’t want to continue to trade voluntarily in the absence of any credit for their work by the current administration,” CEO Jeffrey C. Sprecher., said in an earnings call this month, the Times said.
ICE said its European Climate Exchange and Chicago Climate Futures Exchange will continue to operate, as before.
The bulk of the exchange’s work force will be laid off.
ICE paid $597 million in July to acquire the Chicago Climate Exchange.
Terms of its new registry program are described here.