(BN) Green Exchange May Offer 2013 Contract for UN Offsets (Update1)


Green Exchange May Offer 2013 Contract for UN Offsets (Update1)
2011-01-13 13:31:53.823 GMT

(Adds Hasselknippe comment from second paragraph.)

By Catherine Airlie
Jan. 13 (Bloomberg) -- Green Exchange LLC, an emissions
market owned by CME Group Inc.'s New York Mercantile Exchange,
may offer a United Nations offset contract starting next month.
The emissions contract would "ensure that buyers get what
they need for compliance purposes," Henrik Hasselknippe, a
London-based managing director at the exchange, said today by
phone. Green Exchange is asking clients what they need, he said.
The UN's Certified Emission Reductions can be used by
emitters in the European Union's cap-and-trade program, the
world's largest, as a less-expensive alternative for compliance
with their pollution limits. So-called CERs are created along
with projects to curb emissions in developing nations. The EU
has proposed restricting credits from certain projects starting
in 2013.
Green Exchange's CER contract is "written very
specifically to cover EU eligibility," when phase three of the
trading system begins in 2013, Hasselknippe said. "To create
something that is flexible enough to deal with any regulatory
ICE Futures Europe, the exchange with the biggest share of
the carbon market, proposed last month that offsets used for
settlement against its contracts must comply with European
trading rules.

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--Editors: Mike Anderson, Randall Hackley.

To contact the reporter on this story:
Catherine Airlie in London at +44-20-7073-3308 or

Stephen Voss at +44 207 7073 3520 or