Chicago Climate Exchange, Inc.

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Chicago Climate Exchange, Inc.
November 20, 2008 Rohan Ma 212.599.0853 rma_at_chica
goclimateexchange.com
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Reproduction or quotation of this material is
expressly forbidden without the consent of the
Author.
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CCX Family of Global Exchanges

• Chicago Climate Exchange (CCX)
• Voluntary, Legally Binding Cap and Trade Program
  for all six greenhouse gases
• European Climate Exchange (ECX)
• Derivatives market for European CO2 Allowances
  and CDM Certified Emission Reductions
• Chicago Climate Futures Exchange (CCFE)
• Futures exchange environmental derivatives (CFI,
  RGGI, CER, EUA)
• Tianjin Climate Exchange (TCX)
• Joint venture with China National Petroleum
  Corporation and the City of Tianjin
• Montreal Climate Exchange (MCeX)
• Joint venture with the Montreal Bourse
• India Climate Exchange
• (In development)

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Reproduction or quotation of this material is
expressly forbidden without the consent of the
Author.
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Keys to Attracting Private Sector Finance

• Awareness
• Transparent price signal
• Standardized, consistent, clear rules
• Long term incentives
• Market Infrastructure/Low transaction costs

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CCX Emission Offsets Program
Verified Offset projects sequester or eliminate
GHGs, earn Carbon Financial Instruments
marketable to CCX members

• Examples of pre-defined offset projects
• Landfill, agricultural coalmine methane
  destruction
• Carbon sequestration reforestation,
  afforestation, agricultural soils
• Renewable energy, fuel switching, energy
  efficiency
• Independent verification by authorized entities
  SGS, DNV

Minnesota dairy farmer receives first check from
sales of methane-destruction CCX Offsets
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Reproduction or quotation of this material is
expressly forbidden without the consent of the
Author.
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CCX Aggregator Model

• Offset Aggregators Entities that serve as the
  administrative representative, on behalf of
  offset project owners, of multiple
  offset-generating projects.
• Barriers to Participation
• E.g. Costs (verification, access, transaction)
• E. g. Knowledge of market (registration,
  verification, process)
• Rationale Access cost-effective reductions from
• projects through sharing of cost and risk

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Aggregator Model
GHG Reductions
Payment for GHG Reductions
Project X (5,000 mt)
CCX
Aggregator
Project Y (3,000 mt)
Buyer (15,000 mt)
Project Z (7,000 mt)
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Offsets Achieving Environmental and Social
Objectives

• State of Kerala, India
• NGO, Andhyodaya
• Aggregating methane capture and use with biogas
  digesters in small rural households
• Substitute for kerosene or fuel wood for cooking
  contracts issued on basis of fossil fuel
  emission displacement
• Phase I 15,000 poor rural households in South
  India
• Transferred 1.2 million gross revenue in
  aggregate to participants

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Reproduction or quotation of this material is
expressly forbidden without the consent of the
Author.
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Keys to Accessing the Carbon Market

• Inclusive design
• Market Infrastructure
• Awareness

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