Death of a carbon salesman: Chicago Climate Exchange

It was essentially dead when we announced on WUWT Chicago Climate Exchange(CCX) was halting carbon futures trading last year. Note the flatlined final price of 5 cents per ton:

My only question now is “what took them so long”?

From the Wall Street Journal:

ICE to Close Chicago Climate Futures Exchange

CHICAGO—IntercontinentalExchange Inc. told traders Friday that it would shut down its U.S. emissions derivatives platform, a year after acquiring its parent only to suffer sparse trading as the prospects of a federal carbon-reduction plan remain dim.

The money-losing Chicago Climate Futures Exchange venture will continue operating through the first quarter of 2012 before closing, exchange officials said in a notice. ICE will then list over-the-counter emissions contracts mirroring products listed on the platform.

“The U.S. has not enacted carbon cap-and-trade legislation and changes to the EPA acid rain program have reduced trading activity,” ICE said in the notice. “Accordingly, Chicago Climate Futures Exchange volumes are down substantially and the exchange is operating at a loss.”


Makes you wonder what the bloviator in chief at the California Air Resources Board (CARB), Mary Nichols is going to do with their much ballyhooed (but delayed) idea of carbon trading in California?

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August 9, 2011 3:01 pm

I’m sure it won’t take the state that brought us the twinkie tax long to mandate “carbon trading” by all its residents; for their own good, of course.

August 9, 2011 3:05 pm

That would explain why Obama and Gore have been so grouchy lately……………….

Karen D
August 9, 2011 3:22 pm

Here’s a 2009 quote from Richard Sandor (then head of the Chicago Climate Exchange) talking about the US carbon emissions market:
“We are talking about what will be the biggest commodity ever traded,” says Mr.
Sandor. “Every time a mandated market has come through, it’s provided us enormous opportunities.”
“Exchanges head for green war” by Ann Saphir.
Crain’s Chicago Business. Chicago:Jul 20, 2009. Vol. 32, Iss. 28
Well, the MANDATED market did NOT come through thanks to the Senate nixing cap and trade so there you have it. It was all bunk to begin with.
Maybe this prediction belongs in the Climate FAIL section.

CRS, Dr.P.H.
August 9, 2011 3:25 pm

Put a fork in it, it’s done.
BTW, the Chicago Mercantile Exchange has been threatening to leave the city due to our high city & state taxes. Lots going on in trading…except for carbon, that is.

August 9, 2011 3:32 pm

The Exchange will Administratively run the Carbon Futures thing until the funds are exhausted or there is an empty office.
Now, why would anyone bother with Carbon Dioxide trading shares when there are a plethora of other far more attractive commodities out there?

August 9, 2011 3:38 pm

I think carbon at a nickel is WAY too much! Why not assign it a negative value of, say, $10 a ton just to get it started in the right direction, and hope it goes much lower. That means we’d be PROMOTING the life-supporting gas rather than penalizing it! (Anybody that charges for CO2 with the intention of limiting it should have their heads examined.)

August 9, 2011 3:46 pm

It was always clear that without enforcement no one was really interested in making Carbon trading scamers rich , once that idea died it was only a question of time before this exchanged did
But its multi-heading monster and there still those looking to get very rich indeed in treading ‘hot air’
The real sad part is the main scamers, included Gore , have made their money on the back of the few that where dim enough to fail for the ‘endless ‘ riches promised. A fool and his money as the saying goes .

Fred from Canuckistan
August 9, 2011 3:59 pm

Too funny . . . the trading of Gaia Indulgences is now seriously at risk and she will not be a happy camper.
To say nothing of Prophet Al Gore (peace be upon him) . . . he will be seriously vexed I’m thinking and will likely have a few more bimbo eruptions like happened in Colorado recently.

Green Sand
August 9, 2011 4:29 pm

My father told me that I should always see a Wake was a celebration.
So thank you AW for giving me a surprise party!
Pls keep up the good work, we in the UK need a little light relief at this time.
All is not bad though, this nonsense has shown up some of our politicians to be the charlatans that they are.
The problem is that we are very close to a situation that if the authorities do not ensure control then communities will. This is not a good situation.

August 9, 2011 4:31 pm


August 9, 2011 4:31 pm

A scam is a scam is a scam !
Definition as in meaning……..Gore….a bloody mess associated with a horror movie.
When all the Watermelon Warmers admit their Lie
We will raise a Monument into the Sky
A Monument of solid Carbon
To commemorate their Bogus Bargain.

Paul Westhaver
August 9, 2011 4:32 pm

I need some clarification.
CCX is closed and dis so last november right?
ICE is now closing the CCFE , correct?
How many trading platforms exist, eg european, asian etc?
Are they all dead?

Paul Johnson
August 9, 2011 4:37 pm

So wasn’t Al Gore was involved in setting up this fiasco and how much did he profit?

August 9, 2011 4:46 pm

is there still a pulse?
9 Aug: EnvironmentalLeader: ICE Adds 21 Emissions Contracts to Replace Futures Exchange
The new contracts will mirror products to be lost when the futures exchange closes, the Wall Street Journal reported. New products include derivatives linked to emissions reductions plans in California, Massachusetts, New Jersey and Connecticut, ICE said….
More information on the new contracts is here (pdf).

August 9, 2011 5:45 pm

@ Pat, You are talking about the Regional Greenhouse Gas Initiative or RGGI. Thus far 2 states have left this market. This is a must read from award winning investigative journalist Mark Lagerkvist.

August 9, 2011 5:52 pm

Soros must be going crazy. He was (is) a big promoter of carbon tax as a means to give developing countries money to help them deal with the big, bad, CO2 monster that the industrialized nations have unleashed on them. If the UN wants to tax something, they should tax profits on currency and stock manipulations profits, large bank transfers, and a minute tax on all internationally traded goods. Oh, never mind; Soros and his ilk can’t make money that way.

August 9, 2011 6:09 pm

Here is more on the RGGI and be sure to read the links at the end of the article.

Phil's Dad
August 9, 2011 6:25 pm

“New products include derivatives linked to emissions reductions…”
Didn’t we already do the sub-prime thing?

Chuck Nolan
August 9, 2011 6:26 pm

I see they give Obama til Dec 2012 to come though.
After his next election he can railroad anything through exec order as a lame duck.

Chuck Nolan
August 9, 2011 6:29 pm

misread the date.

August 9, 2011 6:36 pm

Is there any way to get the fox out of the hen house?

August 9, 2011 6:41 pm

How much government money was spent to create this market place?

Dr A Burns
August 9, 2011 6:42 pm

Our fearless Ozzie leader Ms Gillard doesn’t worry about overseas pricing. Her plan is carbon at $23 per ton increasing to $131 per ton within 30 years. Pity I can’t buy in Chicago and sell it here. No doubt the scammers will find a way though.

Robert of Ottawa
August 9, 2011 7:11 pm

This was the Goracle’s major play. 🙂

Mike from Canmore
August 9, 2011 7:37 pm

Ahhh, such a shame.
(sarc off)

old construction worker
August 9, 2011 7:40 pm

To top things off, Tombstone if you will, Congress needs to declare CO2 a non pollutant.

John from New Zealand
August 9, 2011 7:49 pm

Poor Al Gore, no wonder he’s so hot under the collar lately. He’s finally accepted that his investments were in vain, and he’s upset that he can’t force everyone into his beloved false market that’s cost him so much of his money. I almost feel a bit sorry for him …. not.

August 9, 2011 8:11 pm

What is the profit-and-loss arithmetic of Mr. Albert Arnold Gore, Jr.?????

Theo Goodwin
August 9, 2011 8:16 pm

Enron was a disaster. It brought about the Sarbanes-Oxley Law which has profits and non-profits smothered in red tape. Carbon trading in the US would have launched a million Enrons. Is that not obvious?
Each and every death of carbon trading is a good thing for economies worldwide and for mankind. Why? Because each and every scam hurts more than it helps.

August 9, 2011 8:56 pm

These scammers need to be given an escape route that will allow them a way to admit they were wrong without loosing face — then we can all get back to rebuilding this planet.

Yellow Snow
August 9, 2011 8:59 pm

So, if I bought 1000 tons @ 5¢ a ton ($50) would I be safe for the rest of my life? A lifetime insurance policy against CO2 taxes.

August 9, 2011 9:21 pm

Chicago Climate Exchange(CCX) ……..
…….. So once upon a time fools exchanged their climates??

Howard T. Lewis III
August 9, 2011 11:01 pm

Al sure knows how to pick the wrong horse , doesn’t he. He should at least fully understand beer and popcorn before trying to lie the world into giving him all their money. Go home and start drinking, Al.

Lew Skannen
August 10, 2011 12:37 am

OK so carbon is not trading so well. But how about snake oil? That is still OK isn’t it??

Pete H
August 10, 2011 1:04 am

There was a similar graph back in August 1720. The scheme back then finally collapsed at the beginning of September the same year with the stock having fallen by 75 percent in four weeks.
The U.K. Parliament conducted an investigation, corrupt politicians and businessmen were imprisoned, and over £2 million was confiscated from South Sea Company directors.
Now, were is the modern investigation into the likes of Gore etc?

slow to follow
August 10, 2011 3:52 am

For Paul Westhaver:
“Making a difference.
The EU ETS has put a price on carbon emissions and shown that it is possible to trade in greenhouse gas emissions. Emissions from installations in the scheme are falling as intended. The changes to be introduced in 2013, notably a progressive move towards auctioning of allowances, will further enhance its effectiveness.
The success of the EU ETS has inspired other countries and regions to launch cap and trade schemes of their own. The EU hopes to link up the ETS with compatible systems around the world to form the backbone of a global carbon market.”
“Trading carbon credits is rapidly growing as investors realise the potential profits it can hold. Download our free research report now to learn how to trade them.”
EU ETS Phase III (2013 – 2020)
“Phase III of the EU ETS builds upon the previous two phases and is significantly revised to make a greater contribution to tackling climate change. A more ambitious, EU-wide cap on emissions; auctioning as the preferred means of allocation; and reduced access to project credits from outside the EU will result greater emission reductions, greater certainty and more predictable market conditions.”
“On Monday July 18, the benchmark EU carbon price, EUA futures for December 11 delivery, closed at €12.22 on the Intercontinental Exchange (ICE). The price for Dec 2013 EUAs, the first year of the third phase of the EU ETS, closed at €13.73. UN-backed carbon offsets have suffered in similar fashion, benchmark Dec 11 CERs slumping to just €9.90, below the cost of creating such offsets in many cases. Prices in this period have been more volatile than the general ups and downs the market sees under the day-to-day influence of energy prices. Dec 11 EUAs fell 17 per cent in the third week of June alone.”
“The ICE ECX EUA Options Contract is an option on the ECX EUA Futures Contract. At expiry, one lot of ECX EUA Options will excercise into one lot of ECX EUA Futures. ECX EUA Options are European style such that it is automatically exercised at expiry in the money.”
Settlement price graphic on page 6:

August 10, 2011 5:03 am

The success of the EU ETS has inspired other countries and regions to launch cap and trade schemes of their own. The EU hopes to link up the ETS with compatible systems around the world to form the backbone of a global carbon market.”

I assume this is the same EU scheme which was shut down for several weeks recently because every trade was fraudulent? I guess it just depends how you gauge success. From the Mafia’s point of view, it could hardly be more successful.

August 10, 2011 5:35 am

don’t count these liars out yet, after all most of yo ou still believe the 9/11 lies and there is very rarely a week that goes by that they don’t rub that in your faces.
Humans are too stupid to stay free, and that’s not just the opinion of the NWO royalty, it’s the truth. As a nuclear power activist trying to expose the ongoing coverup of Fukushima, the fires at Los Alamos, the floods at Ft. Calhoun, the ongoing radiation releases at Sellafield, the 2000+ nuclear tests worldwide – the people actually are mad at ME for telling them intead of their newspapers that lie and lie and lie and lie and lie every day.
May God forgive us, because it is already over.

Pamela Gray
August 10, 2011 7:53 am

The folly of riding the waves of taxing carbon-based units, not understanding that carbon-based units vote your ass in and out of office.

David Schofield
August 10, 2011 8:09 am

“Dr A Burns says:
August 9, 2011 at 6:42 pm
Our fearless Ozzie leader Ms Gillard doesn’t worry about overseas pricing. Her plan is carbon at $23 per ton increasing to $131 per ton within 30 years. Pity I can’t buy in Chicago and sell it here. No doubt the scammers will find a way though.”
Seriously though, in a global economy, how can the same product be traded at 5c and A$23. I know the A$ is a little weak but that’s not right surely?

Coach Springer
August 10, 2011 8:15 am

There were a lot of green officials (Pachauri) involved in this exchange at one point or another. A lot of universities, cities and politically active corporations buying indulgences too – which is one reason for providing OTC products at this time. ICE is trying to reserve its place at the trough in case carbon rationing makes a comeback.
Also for officials, you could research the history of the CCX and the current chairperson of the Securities and Exchange Commission. Use of an independent self-regulator of brokerage firms to support carbon trading. Firm believer in a partisan issue with no firm science to provide cover. Those under her at the independent and supposedly apolitical regulator spoke openly – but not publicly – of looking forward to the day that cap and trade became mandatory by law. Schapiro would see it as her civic duty to use the SEC to help carbon trading (within professional constraints, of course).

Brian H
August 10, 2011 11:04 am

David S;
Actually, the A$ is very strong, trading at $1.023437 at the moment.
Because coal sales to China are so strong. 😀

Brian H
August 10, 2011 11:05 am

Note: that’s USD $1.023437 per A$.

Barbara Skolaut
August 10, 2011 11:34 am

I thought they closed this money-eating.monstrosity a couple of years ago.

August 10, 2011 11:50 am

Here is a 2 part video regarding a lawsuit against big wind in Colorado.
American Tradition Institute Colorado Lawsuit, Part 1 – Pollution Issues

Part 2: Constitutionality

August 10, 2011 7:12 pm

I wonder where dimwit California government officials will sell their carbon credits? On Craigslist?

August 11, 2011 5:54 am

@ AirFiero, you may want to read this:
California’s 33% Renewable Energy Goal by 2020: Form or Substance? (Part I–Current Situation)
California’s 33% Renewable Energy Goal by 2020: Form or Substance? (Part II-RECs Required)

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