LONDON (Reuters) - British carbon credit exchange operator Climate Exchange said trading volume on its main exchanges rose sharply in 2008 when its loss before tax narrowed to 2.5 million pounds ($3.5 million).
“In spite of financial market distress and a serious economic downturn, environmental markets continue to grow,” it said in a statement on Thursday. Climate Exchange owns and operates exchanges on which environmental finance instruments such as emissions reduction credits are traded.
Its two main exchanges are the European Climate Exchange (ECX) which mostly trades compliance permits under the European Union’s Emissions Trading Scheme, and the Chicago Climate Exchange (CCX) which trades unregulated voluntary emissions reduction credits.
It also operates Chicago Climate Futures Exchange (CCFE).
Annual volume on the ECX surged 170 percent to 2.81 billion metric tons, while average daily volume on the CCX increased 70 percent to 1,899 contracts, the company said.
“The continued volatility in prices, combined with new spot products and the ever-growing developments in emissions trading both from the U.S. and Asia all give good reasons for optimism.”
The CCX business generated revenues mostly from membership dues, trading in the CCX carbon financial instruments and from offset registration fees.
The company said its 2008 pretax loss fell to 2.5 million pounds from 8.3 million a year earlier.
(Reporting by Nina Chestney; Editing by Dan Lalor)
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