Caisse des Dépôts et Consignations, Euronext and Powernext prepare a European CO2 emission permit exchange

Community Directive 2003/87 / EC confirms the European will to fight against climate change by establishing a greenhouse gas emission allowance trading system in the Union. The efficiency of the allowance trading system will be verified in terms of the quality of the “price signal” emitted by the market, on the basis of the transactions that will actually be carried out and recorded there. The comparison of offers and demands in a single place will ensure the greatest liquidity on this market.

It is in this context that Caisse des Dépôts et Consignations, Euronext and Powernext wished to join their expertise to set up a market organized in cash of allowances or CO2 emission permits based on four principles:

 • the guarantee of successful completion of transactions based on a harmonized and secure delivery settlement mechanism annihilating defaults and CO2 quota delivery failures,

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• transparency of prices and their method of fixing

• non-discriminatory access and anonymity of stakeholders

• the simplicity of an integrated negotiation-to-delivery system, open to all participants with an account in one of the 25 CO2 emission registers in Europe.

On December 14, 2004, Caisse des Dépôts et Consignations, Euronext and Powernext signed a letter of intent laying the foundations for this collaboration. The launch of this contract - the terms of which are being finalized - is scheduled for March 2005.

Econology note: if the idea is an interesting advance, because it makes “polluting” companies a little more responsible, it would be more than desirable that a part of these exchanges benefit the R&D of real solutions via a tax for example. But it is very likely that this system will only enrich transactional agents, bankers and other “eco” goldenboys… to the complete detriment of environmental advances!

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