How the Chicago Climate Exchange Works

How the Chicago Climate Exchange Works: Author’s Note

When I learned there was such a thing as the Chicago Climate Exchange (CCX) I immediately wanted to know more about the idea. There was a lot of information to read and distill before writing this piece: Who is eligible? How does trading work? What about verification and transaction reporting?

The CCX launched in 2003 as the world's first greenhouse gas emission reduction program, allowing members to buy, sell and trade allowances and offsets in the form of carbon financial instruments (CFIs) -- one CFI represents 100 metric tons of carbon dioxide equivalent. The program is voluntary, but it's legally binding.


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