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Paris-Based BlueNext Exchange Introduces Spot Emissions Reduction Units

BlueNext, the environmental exchange based in Paris, is offering a spot contract for Emission Reduction Units starting today, boosting its product range and taking advantage of higher supply.

“We consider there are people looking for price discovery,” François-Xavier Saint-Macary, chairman and chief executive officer of BlueNext, said in a phone interview.

ERUs stem from the 1997 Kyoto Protocol’s Joint Implementation program to create incentives for emission- reduction projects in developed nations including Russia and the former-Soviet states. Manufacturers and utilities can use them to comply with emissions limits in the European CO2 market, the world’s largest.

BlueNext handled two auctions of the units in January and September of this year, according to an e-mailed statement. About 40,000 tons of contracts may trade each day initially, said Keiron Allen, a spokesman for the exchange.

Volumes of Certified Emission Reduction credits from the Clean Development Mechanism handled by the exchange in the past 12 daily sessions averaged 139,000 tons of carbon dioxide equivalent, BlueNext data show.

BlueNext is also considering offering new types of CER futures for 2013, after the European Union last month proposed a ban on some credits from industrial gas projects starting that year, Saint-Macary said. “We are consulting our members,” he said. “We want to make sure there is a real appetite.”

To contact the reporter on this story: Mathew Carr in London at m.carr@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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