See below to learn more about our
other commodities businesses:
Merrill Lynch Commodity Index eXtra
click here 
Merrill Lynch Global Carbon Emissions
click here
Merrill Lynch Principal Investments
click here
Merrill Lynch Petrie Divestiture
Advisors
click here Click here to view our
Environmental Sustainability website.
|
| GMI Home > Global Markets > Global Commodities > Global Carbon Emissions > Compliance Markets |
 |
 The compliance markets cover the origination and trading of allowances and credits in programs that involve mandatory, legally-binding emissions reductions goals.
We provide tailored trading service agreements for our clients, and have developed a range of risk management products, derived from our focus on developing successful, long-term relationships between our trading desk and our customers.
We are active in all compliance markets, including:
- The European Union Emissions Trading Scheme (EU ETS), established by EU Member States in 2005 to involve the private sector in achieving their obligation under the Kyoto Protocol.
- The Clean Development Mechanism (CDM), one of the flexible mechanisms of the Kyoto Protocol that allows for project based emission reduction projects in countries that are parties to the Protocol but do not face emissions reduction caps of their own.
- Joint Implementation (JI), one of the flexible mechanisms of the Kyoto Protocol that allows for project based emission reductions in signatory countries that do face caps.
We invest in these projects and trade credits generated under these programs. We also provide liquidity in these markets and offer innovative, structured solutions to firms looking to trade and manage risk in these markets. For example:
-
In the CDM market, we negotiated a carbon credit offtake agreement for 250 megawatts (MW) wind parks being developed by Guohua Energy, a subsidiary of China Shenhua Energy Company, the largest coal mining enterprise in mainland China, whose initial public offering in 2005 was co-managed by Merrill Lynch.
- In the JI market, we are an investor in the Core Carbon Group, which is developing carbon credit projects in Russia.
Merrill Lynch is a top liquidity provider in the EU ETS, the world's largest carbon market. To date, we have transacted over 500 million tonnes in the EU ETS and provided innovative opportunities and risk management solutions to those firms active in this market. Areas of focus include:
-
Exchange and OTC trading
- Primary and secondary Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs)
- Cross-commodity products - weather/emissions, coal/emissions, Clean Dark/Spark Spreads
Merrill Lynch is active in the developing markets in the United States, including the first compliance market for carbon in the U.S., the Regional Greenhouse Gas Initiative (RGGI).
Products and services may not be available to all clients or in all jurisdictions.
|
|
|
