1. IISD Kyoto Mechanisms Seminar Winnipeg, MB March 14, 2003

2. Why Emissions Trading? Emissions Trading (“ET”) is a market-based approach to addressing climate change. ET provides a price signal. ET allows for efficient allocation of resources. ET is more dynamic than a regulated approach.

3. CCE Organizational Structure

4. The Canadian Climate Exchange Builds on the expertise of Canada’s only commodity exchange. WCE has extensive experience in: Creating, implementing, and facilitating trading in over twenty different cash and derivatives contracts. Clearing both futures and physical products. Operating as an SRO in a regulated environment. Annual WCE trading volume exceeds four million contract sides.

5. The Canadian Climate Exchange, cont’d… Staff of WCE have been working on emissions trading issues for over three years. CCE officially launched as a separate entity on February 5, 2003. Presently consulting with industry and government. Assessing the potential for a Canadian emissions marketplace.

6. Why trade on an exchange? Open, competitive, and fair marketplace. Low-cost trading and counterparty risk management (clearing). A proven model that facilitates trade for a wide variety of participants. Public price discovery.

7. Why CCE? Proven track record based on WCE. Extensive experience working with industry to create products and markets. Skills and understanding on how to keep contracts relevant and functional, in the face of changing requirements and regulations. Expertise in operating an SRO model, and dealing with regulators on a provincial, federal, and international level.

8. Derivatives versus Cash Market CCE believes that the logical first step in emissions trading is a cash market, not a derivatives market. This is the method used by the majority of existing emissions trading schemes. Clearing of cash products can take significantly different forms than clearing of derivatives products.

9. CCE’s vision Market-based, low-cost solution to the implementation of Kyoto Protocol in Canada. Products and services that meet industry needs. Continual review to ensure ongoing suitability. SRO (self-regulating organization) model for the marketplace. Ability to expand into additional markets (eg - NO x and SO 2 ) Standardization and fungibility with carbon markets in other jurisdictions.

10. Contact Information Canadian Climate Exchange www.canadianclimateexchange.com Winnipeg Commodity Exchange www.wce.ca Bruce Love, Managing Director, CCE Inc. blove@canadianclimateexchange.com (204) 925-5003 Steve Teller, Analyst, CCE Inc. steller@canadianclimateexchange.com (204) 925-5019