Many institutions in countries which have not ratified the Kyoto Protocol have resolved to reduce their GHG emissions leading to the development of a voluntary market for emission reduction certificates.initiatives.
This is a rapidly growing marketplace, particularly in the United States, where the Climate Action Reserve (CAR) operates a national offset program and works to ensure integrity, transparency and financial value in the North American carbon market.
CAR has established regulatory-quality standards for the development, quantification and verification of GHG emissions reduction projects in North America; issuing carbon offset credits known as Climate Reserve Tonnes (CRTs) generated from such projects; and tracking the transaction of credits over time in a transparent, publicly-accessible system.
In February 2009 the Chicago Climate Exchange announced the launch of futures contracts on Climate Reserve Tons (CCAR-CRT). Each CCAR-CRT contract calls for delivery of 1,000 Climate Reserve Tons (CRTs). Other exchanges such at NYMEX’s Green Exchange are expected to list options and futures contracts on CRTs over the coming months.