Climate Exchange: Trading in Carbon Emissions

In the past, I've posted articles about various types of alternative energy stocks, including solar energy stocks, wind energy stocks, ethanol stocks, flywheel stocks, and geothermal stocks.

Now there is a stock that is a major player in carbon emissions trading called Climate Exchange Plc (CXCHF.PK). Carbon emissions trading is the trading of permits to emit carbon dioxide and other greenhouse gases. It is way of meeting obligations under the Kyoto Protocol to mitigate global warming.

Climate Exchange Plc owns the Chicago Climate Exchange, Inc. and the European Climate Exchange, which provide futures contracts and options contracts of emissions. Goldman Sachs has taken a major position in this company.

Special thanks to TheStreet.com, Daily Blog Watch and AlternativeEnergyStocks.com for pointing out this company.

Comments

[Britishsteel:]

I looked up goldman sachs holdings and I could not find any new positions intiated in this company. Did it IPO today? and if so how large a position was taken. Its rather expensive for a pink sheet stock although not uncommon. And why would GS take a psoition in a pink sheet stock?

2007 Feb 08 01:19 PM

[Stockerblog:]

The Exchange has been around for the last couple years. The information on the Goldman Sachs ownership came from Climate Exchange's website:
www.europeanclimateexc...
Click on the "About ECX" link and scroll down to the bottom of the page where it says:
PLACING OF SHARES WITH GOLDMAN SACHS

Also, more details can be found in a UK Yahoo Finance news release here:
uk.biz.yahoo.com/20092...

2007 Feb 08 09:13 PM

[Stockerblog:]

The exchange has been around for a couple years. Info on Goldman Sachs came from the company's web site and UK Yahoo Finance.
www.europeanclimateexc...
uk.biz.yahoo.com/20092...

2007 Feb 08 09:42 PM

[Travis Johnson:]

It's only a pink sheet because it's primarily traded in London -- I assume Goldman Sachs holds their shares in London. You can check out the ticker CLE on the LSE for more info -- thanks to all the chatter about carbon trading from California and the potential for federal movement on this, the shares have tripled since November. I've looked at this one before, too, and I regret not buying shares a few months ago, but haven't felt confident enough in their moneymaking ability to join in as a long term holder -- it's an odd business, partially run by true believers and owned by voluntary participants who operate more or less as nonprofits, and partially trying to become a modern, for profit exchange. If we get to the point that there is a globally accepted commodity in "carbon credits" I can't help but believe that there will be many competitors to facilitate the trading thereof.

Of course, it might still be an opportunity to get in on the ground floor of a tremendous business ... the risk just makes me nervous, especially because it's so news-driven and has climbed so quickly. I'd love to read more analysis of these guys.

Cheers,
Travis
Oneguysinvestments.com

2007 Feb 08 03:47 PM