European Energy Exchange AG will set up its carbon exchange, the world’s second-biggest emissions bourse, as a wholly owned subsidiary, according to an e-mailed statement from the company.
Shareholders in EEX, based in Leipzig, Germany, approved the move at an annual general meeting held June 6, according to the statement. EEX’s carbon market will be called Global Environmental Exchange GmbH, or GEEX.
“Collaborations with other trading platforms are much easier to implement in an independent company,” Peter Reitz, chief executive officer of EEX, said in the statement. “The time is now right for us to implement in emissions trading, what we have already successfully carried out in the field of power and natural gas trading.”
More than 250 million metric tons of European Union carbon permits and United Nations emissions offsets were handled by EEX in 2012, more than twice the volume in 2011, according to data compiled by Bloomberg. That compares with more than 6.6 billion tons traded on London-based ICE Futures Europe, the market’s biggest exchange.
EEX was awarded contracts by the European Union and Germany last year to auction more than 627 million EU permits on their behalf in 2013. Representatives of EU governments are scheduled to vote this month on EEX being the permanent platform for German carbon auctions through 2020, according to a document obtained June 5 by Bloomberg News.
“The new company will operate the emissions spot and derivatives market and will operate the auctions as a service provider for EEX,” Eileen Heike, a spokeswoman for EEX, said today by phone from Leipzig. “The contracts regarding the auctions will not change.”
Heike said there were no specific projects yet planned for the new subsidiary.
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