(Lysaker, 13 August 2007) Nord Pool experiences a successful start in the trade of CER contracts (global carbon contracts), launched June this year.
Nord Pool has traded and cleared contracts exceeding 1.7 million tonnes CO2 with volumes in steady growth.
On 1 June, Nord Pool launched the first standardised certified emission reduction (CER) contract after requests from the market.
The increase in exchange trade volume from June to July was 334 per cent (145 000 tonnes against 485 000 tonnes). With a third of August passed, the total turnover has already exceeded July. (485 000 tonnes compared to 500 000 tonnes). So far, total trade at the exchange has been 1.13 million tonnes CER. The OTC clearing volume in the same period is 616 000 tonnes.
Torger Lien, CEO in Nord Pool ASA states:
“The market has welcomed the new global carbon contracts and we believe it is very important that the members can trade and clear standardized CER contracts in a secondary market. The CER contract enables European companies to comply with the purposes under the EU ETS and governments to fulfil their obligations under the Kyoto protocol.“
All members of the EUA market (104) at Nord Pool can automatically trade CER contracts.
And Lien adds:
“The core of Nord Pool's business is to serve the needs of our members. Offering the most comprehensive emission market today with EUA and CER contracts, we signal a commitment to the development of a European and global carbon emission market.”
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, European Union allowances (EUAs) and certified emission reductions (CERs).
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 21 countries across a wide range of energy producers and consumers as well as financial institutions. Nord Pool has over 100 members from 18 countries in the carbon 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/17-07CERtrade.pdf Press release no 17/2007 (PDF-format)
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For further information, please contact Nord Pool ASA:
Torger Lien, president and CEO, phone +47 6752 8070/+47 9188 8112
Lars Galtung, vice president communications, phone +47 6752 8080/+47 9821 4812