What is Emissions Trading?
Emissions Trading is a market-based mechanism for reducing or offsetting carbon emissions. The Australian Government has proposed an Emissions Trading Scheme (ETS) starting on 1 July 2012. Although initially a fixed price, the Carbon Units will move to a flexible price structure in 2015. ASX is well placed to provide forward price discovery through the listing of futures contracts over Carbon Units, in the instance that the Scheme proceeds.
Why trade emissions or carbon?
ASX Carbon Unit Futures and Options will, if listed, provide a robust mechanism for companies that have an interest in or exposure to the carbon price and proposed ETS to manage their forward price and counterparty credit exposures.
Emissions and Carbon Trading
- Certified Emission Reduction Futures and Options have been given full regulatory clearance however a date to list produst has not as yet been determined.
- Australian Carbon Unit Futures and Options will list once the legislation to support the ETS is in place.