What is being traded?

Carbon dioxide (CO2) is the new kid on the block in commodity trading. The gas that makes up part of the atmosphere, that plants take in and we breathe out, is being commoditised and bought and sold as if it were a barrel of oil or a tonne of coal.  The underlying commodities being traded at ECX are EU allowances (EUAs) as issued under the EU Emissions Trading Scheme. One EUA equals one tonne of CO2 (right-to-emit).  Approximately 2.3 billion EUAs in total have been granted yearly to the 12,000 energy-intensive installations covered by the EU ETS Directive.  ECX added Certified Emission Reduction units (CERs) as another underlying commodity. CERs are generated from CDM projects, in the form of physically-settled futures and options contracts. For more information on how to gain access to trade click here.