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3	The Growing CCX Family Chicago Climate Exchange (CCX) Launched 2003 with 14 members, now 200+ members (US, CA, MX, BR) European Climate Exchange (ECX) FSA-regulated futures market for European CO₂ Allowances Launched April, 2005 – accounts for 80-90% of total exchange traded volume in the EU ETS Chicago Climate Futures Exchange (CCFE) CFTC-regulated futures exchange for U.S. SO₂allowances Launched in December 2004, world’s first environmental derivatives exchange Montreal Climate Exchange (MCeX) Joint venture with the Montreal Bourse To host Canadian GHG trading, other environmental markets New York Climate Exchange™ and Northeast Climate Exchange™ Developing instruments for northeast Regional Greenhouse Gas Initiative (RGGI) Indian Climate Exchange Partnership with the Multi-Commodity Exchange of India In development
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5	Chicago Climate Exchange Members
6	Associate Members
7	Participant Members
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10	CCX Market Architecture (2003-2010)
11	Emissions Quantification, Verification, True-up Prescribed emission quantification methods: Baseline Annual Emission audits conducted by NASD: World's leading private-sector provider of regulatory services Organized under provisions of Securities Exchange Act of 1934 Audit reports approved by CCX’s Environmental Compliance Committee Annual True-up Pre-defined offset projects: Sequestration: reforestation, agricultural soils Landfill and agricultural methane destruction Renewable energy systems, fuel switching, energy efficiency Independent verification by authorized entities: SGS, DNV, First Environment, BvQi, etc.
12	CCX Registry
13	CCX Trading Screen
14	CCX Price* and Volume History 2003 - 2006
15	CCX Offset Program Verified Offset projects sequester or eliminate GHGs and earn Carbon Financial Instruments that can be sold to other CCX members. Eligible Project types include: Landfill methane destruction Agricultural (livestock) methane destruction No-till agriculture Forestry Renewable Energy New project types
16	Defining CCX Offsets: Principles Eligibility: Predictability: facilitate carbon finance Other than Business as Usual: beyond regulation, rare, recent Verifiable: eligibility, quantities, ownership No cherry picking – emitters must take entity-wide reductions Avoid perverse incentives: avoided encouraging bad acts Target Actions with Major Mitigation Potential Non-CO₂ gasses: low-cost, multi-benefit Agriculture: soils hold 183 years of global CO2 emissions Forestation: forests hold 75 years of global CO2 emissions Advance broader societal goals: sustainable agriculture and forestry, energy efficiency, renewables General provisions: Conservative crediting Reserve pools for sequestration assurance All Carbon Financial Instruments are equivalent
17	Opportunities for PA Agriculture Reforestation Sustainable Forest Management Conservation Tillage Grassland Plantings Animal Methane Capture Biomass Fuels
18	More Views on CCX “What would be wrong, at least on a theoretical basis, with taking what you have come up with by way of requirements for your (CCX) members and essentially mandating that everybody in the country comply with those?” Senator Jeff Bingaman (D-NM), Chairman Senate Energy & Natural Resources Committee, April 4, 2006 “the Chicago Climate Exchange is providing an innovative means of involving American businesses and citizens in the effort to protect the environment. Our nation’s leading companies are buying and trading units of carbon as a way to reduce their impact on climate change. I am hopeful that the economic opportunities provided by the Exchange will enhance the incentives farmers already have to participate in the sequestration of carbon.” Senator Richard Lugar (R-IN), Chairman of Senate Foreign Relations Committee, May 18, 2006 “The CCX is leading the way toward a future in which reducing greenhouse gases could bring not only environmental rewards, but financial ones too.” Al Gore, from An Inconvenient Truth, 2006
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