(Lysaker, 1 June 2007) Today, Nord Pool launched a standardised certified emission reduction (CER) contract. This makes Nord Pool the first regulated exchange to offer a global carbon product.
The first trade was executed between Essent Energy Trading B.V. and Statoil ASA.
The listing of CER contracts represents an important contribution to the development of a secondary market for this product. The contract is designed in accordance with the requirements of the European Union emission trading scheme (ETS) directives. The contract enables European companies to comply with the purposes under the EU ETS and governments to fulfil their obligations under the Kyoto protocol.
“We are gratified to take part in the first standardised exchange-traded CER forward contracts, initially covering the years 2008 and 2009 in the Kyoto period,” says Jo Overå, head of power & emission trading in Statoil.
Essent welcomes the fact that Nord Pool has opened a global carbon market.
“We're pleased to continue to demonstrate our commitment to reduce the impact of global warming and climate change including providing for liquidity and transparency in the emissions markets. Listing of a tradable and clearable CER contract at Nord Pool is another innovative step in achieving our objectives by providing for an efficient means to transfer capital and technology throughout the global markets and to contribute to the Kyoto reduction targets, says Nyame de Groot, vice president emissions for Essent Energy Trading B.V.
All 92 members of the EUA market are authorised to trade CER contracts.
”We are constantly working to improve our performance and provide better services to our members. The listing of CER contracts signals that we've made a long-term commitment to the development of a European and global carbon emission market. Together with our EU emission allowance (EUA) contracts, we can offer today's most comprehensive carbon emission market,” says CEO of Nord Pool ASA, Torger Lien.
All relevant documents (product specifications, fees, and rulebook and agreements) can be accessed athttp://www.nordpool.com/static/nordpool/archive/products/CO2/agreeallowances.htm www.nordpool.com , including a guide on how to become a member of Nord Pool.
About CERs
A certified emission reduction (CER) is the name for an emission credit obtained through the clean development mechanism (CDM), which is implemented by the United Nations. The recipient has achieved a reduction corresponding to one tonne of carbon dioxide or carbon equivalent greenhouse gas in a developing country.
This is one of the principal Kyoto mechanisms and involves the transfer of capital and technology from an industrial country to a developing nation. Projects must be approved by the UN's CDM executive board and will generate a new type of emission credit.
About Nord Pool
Nord Pool is the world's first international commodity exchange for electricity, green certificates and European Union allowances (EUAs).
The core business of the Nord Pool group is trading and clearing physical-delivery and financially-settled power contracts in the Nordic region (Finland, Sweden, Denmark and Norway).
The group has more than 420 members from 20 countries across a wide range of energy producers and consumers as well as financial institutions. Nord Pool has over 9 0 members from 17 countries in the c a r b o n market.
The Nord Pool group comprises Nord Pool ASA and Nord Pool Spot AS.
Nord Pool ASA embraces the wholly-owned Nord Pool Clearing ASA and Nord Pool Consulting AS subsidiaries. It is owned 50-50 by Svenska Kraftnät and Statnett, the transmission system operators (TSOs) in Sweden and Norway respectively.
Nord Pool Spot AS and its wholly-owned Nord Pool Finland Oy subsidiary are owned 20 per cent each by the Fingrid, Energinet.dk, Statnett and Svenska Kraftnät TSOs, and by Nord Pool.
The Nord Pool group has offices in Lysaker (Oslo), Fredericia, Stockholm, Helsinki, Berlin and Amsterdam.
http://www.nordpool.com/static/nordpool/archive/information/press_releases/16-07CER.pdf Press release no 16/2007 http://www.nordpool.com/static/nordpool/archive/information/press_releases/08-06intradayGermany.pdf (PDF-format)
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For further information, please contact Nord Pool ASA:
Torger Lien, president and CEO, phone +47 6752 80 0/+47 9188 8112
Lars Galtung, vice president communications, phone +47 6752 8080/+47 9821 4812