Chicago, November 19, 2010 – A pilot program in the trade of greenhouse gases, the Chicago Climate Exchange, is shutting down due to a lack of Congressional progress on emissions reduction.
The company’s trade markets will be shut down by the end of the year, essentially bringing an end to emissions trading in North America. Some activities will continue until 2012, and will mostly be limited to emissions mitigation associated with forestry and farming.
The exchange was modeled after a federal cap-and-trade regime in the 1980s and operated using a voluntary emissions credit trading system.
Officials at the exchange attributed the planned shut-down to Congress’ inability so far to reduce emissions.
IntercontinentalExchange, an Atlanta-based operator of exchanges and markets, confirmed that it is winding down the Chicago Climate Exchange, which is the American part of a larger, international company called Climate Exchange.
IntercontinentalExchange is closing the Chicago operations just months after paying nearly $600 million for Climate Exchange. But the company will continue to operate the Climate Exchange’s markets for greenhouse gases in Europe.