NYSE Euronext and French state-owned bank Caisse des Dépôts have announced plans to open an organized international market to trade carbon allowances and credits. The partners plan to provide a full range of exchange-based services to the carbon emissions market at a global level.
Due to open in early 2008, the new facility will be majority owned by NYSE Euronext, with Caisse des Dépôts as the other shareholder. It will offer an organised continuous market to facilitate spot transactions in carbon allowances and credits, with services ranging from trading to settlement. There are also plans to develop derivative products in order to enhance market liquidity and depth.
NYSE Euronext says the initiative will be backed by its international network and expertise in managing securities markets and by the specialist knowledge of Caisse des Dépôts in the area of carbon finance, especially emissions trading technology and settlement activities.
A state-owned financial institution, Caisse des Dépôts is the leading administrator of French savings deposits and retirement savings funds and of private funds that are protected under French law, the leader in financing low-income housing urban development in France.
Through subsidiaries that provide regional development services (Transdev, Egis, Compagnie des Alpes and VVF Vacances), are involved in real estate (Icade and Société Nationale Immobilière) or private equity investing (CDC Entreprises), the group is an investor in local development projects. It also manages portfolios of shares in listed companies, private equity investments (through CDC Capital Investissement) and real estate assets.