MGEX Targets California Carbon Market
Minneapolis Grain Exchange has formed a partnership with Carbon Trade Exchange, an Australian operator of trading venues for environmental commodities, to launch a new exchange for participants in the California cap-and-trade program.
The two companies said that the exchange will support intraday spot trading for carbon allowances and offsets in the California cap-and-trade program, which has grown steadily since its launch in 2013.
The program is designed to limit greenhouse gas emissions by establishing an annual cap on emissions and auctioning allowances for companies that cannot meet the cap. The program was expanded this year to include emissions from transportation fuels and also is linked to a similar program in Canada.
