EEX to launch carbon derivatives contract

The new contract will allow traders to hedge the price risk of EU carbon allowances (EUAs) out to 2012. EEX has run a spot market for EUAs since March.

EEX is waiting for German tax authorities to make a binding statement on how sales tax rules will be applied before launching the product.

Entering the carbon derivatives space will bring EEX into direct competition with the European Climate Exchange, based in Amsterdam, and Oslo’s Nordpool, which already offer forward contracts for EUAs.