1. Finexpo - Green City agenda Emissions trading and the carbon economy and beyond 10th April 2008
Richard Wilson
Head of Emissions
Tullett Prebon

2. Emissions trading and the carbon economy - 2008 and beyond
Products:
- European Union Allowances (EUAs)
Certified Emission Reductions (CERs)
Primary
Secondary
- Verified Emissions Reductions (VERs)
Options on Euas and Cers
______________
Exchange cleared
-otc cleared - EFPs

3. Emissions trading and the carbon economy - 2008 and beyond
The 1st chart shows volumes both executed and cleared through ecx.
The 2nd chart shows data collated by LEBA from its member brokers.
Brokers still do majority of execution.

4. Emissions trading and the carbon economy - 2008 and beyond
CER:
March 08 saw huge growth in CER volume due to ability to clear through a major exchange – Ecx launched on 15th March

5. Emissions trading and the carbon economy - 2008 and beyond
ITL
-when?
-what happens to cer mkt?
-become like a bond mkt?
-further structured products ie repos….?
-If North America join how large?

6. Emissions trading and the carbon economy - 2008 and beyond
North America:
-All Presidential Candidates indicate need for a Carbon trading system
Already Sox/ Nox/ Recs/ Rggi/ Vers
state by state RECs now  vs. a federal standard down the road
regional standards (i.e. rggi/ auctioning sep08)vs a federal standard
Fed legislation that looks to a world wide standard?
Earliest legislation 2010 – rest of world looking at post 2012
Still many people think will only definitely be in place by 2020

7. Emissions trading and the carbon economy - 2008 and beyond
IDBs bring new parties to the forum
IDBs are able to build deals in confidence and with impartiality
IDBs encourage greater volumes in a relatively thin exchange market without prices disappearing
IDBs are beneficial in creating structured products and deals including options and cross commodities
IDBs and Exchanges work well together to facilitate market growth and in the process provide more liquidity to the end user

8. Emissions trading and the carbon economy - 2008 and beyond
Thank You
Richard Wilson
Head of Emissions
Tullett Prebon
Tel: +44 (0)
Mb: +44 (0)
Yahoo: richwilson72