Leading US and international companies and the City of Chicago are to be founding Members of the Chicago Climate Exchange (CCX), a voluntary cap-and-trade program for reducing and trading greenhouse gas emissions.
In the voluntary action, the organisations have made a legally binding commitment to reduce their emissions of greenhouse gases by 4% below the average of their 1998-2001 baseline by 2006, the last year of the pilot program.
The founding members of CCX include American Electric Power (AEP), Baxter International, the City of Chicago, DuPont, Equity Office Properties Trust, Ford Motor Company, International Paper, Manitoba Hydro, MeadWestvaco Corporation, Motorola, STMicroelectronics, Stora Enso North America, Temple-Inland and Waste Management.
The announcement marks the first time major companies in multiple industries have made a voluntary binding commitment to use a rules-based market for reducing their greenhouse gas emissions.
CCX will administer the pilot program, enabling the organizations to receive credit for reductions as well as to buy and sell credits.
The development of CCX resulted from feasibility and design studies that were funded by grants from the Chicago-based Joyce Foundation and administered by Northwestern University’s Kellogg Graduate School of Management. Environmental Financial Products conducted the research and development effort.
CCX has selected NASD to provide regulatory services and Rothschild, an affiliate of the London-based bank N.M. Rothschild & Sons Limited, to provide investment banking services.
Detailed discussions are underway with 53 additional corporations who are interested in becoming members of CCX. A second group of members is expected to be announced in the next 90 days.