E.ON Energy Trading today announced that it has carried out its first transaction for carbon emissions certificates at the New York-based Green Exchange, entering into a cleared over-the-counter (OTC) contract to buy December 2010 European Union carbon allowances (EUAs) on Friday (October 15).
The move to begin trading at the Green Exchange is part of E.ON Energy Trading’s strategy to increase market access and continue developing its ability to trade environmental products, both in Europe and in the United States. The company already operates one of Europe’s leading carbon emissions trading desks, which in turn helps E.ON, one of the world’s largest power and gas companies, meet its compliance obligations within the European Union Emissions Trading Scheme (EU ETS).
“The Green Exchange will give us better access to a US carbon market as it evolves, which will increasingly influence what happens in Europe. Going forwardwe expect to expand our range of traded products in the US to better optimise correlations between energy markets on both sides of the Atlantic. It’s not just the European drivers we need to understand, but what is happening on a global scale,” says Tom Sargent, Director of power and emissions trading for E.ON Energy Trading.
E.ON Energy Trading already trades range of environmental products, including EUAs and United Nations-certified Carbon Emissions Reductions (CERs), at the European Carbon Exchange (ECX), the European Energy Exchange (EEX), Bluenext and Nordpool. The company began trading Regional Greenhouse Gas Initiative credits (RGGIs) and Climate Action Reserve Carbon Reduction Tons (CRTs) the U.S earlier this year.
E.ON Energy Trading, backed the broadest and most diverse power and gas asset base in Europe, traded 1,498 billion kWh of gas, 1,240 billon kWh of power, and 500 million metric tons of carbon in 2009. The company is active in over 40 countries and at all major exchanges and hubs throughout Europe.
