ClimeCo Participates in First Ontario Cap and Trade Futures Transaction

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ClimeCo Corporation is pleased to announce that we participated in the first exchange trade that occurred for the Ontario Cap and Trade futures contract.

"At ClimeCo, we seize on every opportunity to take a pioneering role in new environmental markets and programs. This leadership is our obligation to our clients”, commented ClimeCo Corporation Senior Vice President Derek Six.

ClimeCo Corporation (ClimeCo) is pleased to announce that on February 1st, 2017, the first exchange trade occurred for the Ontario Cap and Trade futures contract (Contract: OCA). ClimeCo is proud to have been part of the transaction for December delivery of Vintage 2017 Ontario allowances. The futures contract is a newly-listed product on the Intercontinental Exchange (http://www.theice.com). The contract traded first at CAD$18.05/allowance.

Ontario’s Cap and Trade program kicked off on January 1, 2017, with the first auction of allowances scheduled for March 22, 2017. The program reduces Greenhouse Gas (GHG) emissions by placing a cap on the total amount of GHGs emitted each year. Over time, the cap declines. Emitters in Ontario can respond to the declining cap by reducing their own emissions, or by purchasing allowances from other firms or from projects which are able to reduce emissions more economically. The result is the desired reductions in GHG emissions at the lowest possible cost to Ontario consumers.

Futures markets are a critical tool in a successful Cap and Trade program, offering price transparency, providing liquidity, and facilitating investment in emission reduction projects and technologies. This first transaction marks an important milestone in the progression of the Ontario Cap and Trade market.

Recently, ClimeCo announced its expansion into Canada and the opening of its ClimeCo Canada, ULC subsidiary. Engagement in the futures market for Ontario allowances is a continuation of ClimeCo’s commitment to Canada and to providing its clients unsurpassable market access, leadership, and experience.

“This first trade of Ontario futures is an important milestone in the implementation of the Ontario program”, commented ClimeCo Corporation Senior Vice President Derek Six. “ClimeCo is excited to have been a part of it. At ClimeCo, we seize on every opportunity to take a pioneering role in new environmental markets and programs. This leadership is our obligation to our clients- we believe our clients benefit from our experience.”

ClimeCo Corporation is a respected project developer, advisor and trader of environmental commodity market products. Specialized expertise in regional criteria pollutant trading programs, WCI cap-and-trade, voluntary markets, and project development and financing of internal CO2 abatement systems, complement ClimeCo’s diverse commodity portfolio. Within the Climate Action Reserve, ClimeCo is the largest developer of U.S. GHG-offset projects and producer of U.S. voluntary carbon offsets, managing projects that reduce more than four million tonnes of CO2e per year. For information, contact 484-415-0501 or mfinneran(at)climeco(dot)com.

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Maria Finneran
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