Chicago Climate Exchange (CCX)
Founded by Richard Sandor, the Chicago Climate Exchange is the world’s first voluntary, legally binding rules-based greenhouse gas emission reduction and trading system. It was created as a market-based modality to address global warming.
The CCX effectively reduces GHG emissions through a voluntary, legally binding, rules-based “cap and trade” system. GHG emitters sign a binding agreement to reduce emissions below a certain level, usually determined by 1998-2001 average for the emitter. If they cannot reach their reduction goals they must purchase credits from other emitters who have exceeded their reduction goal or offset providers. The CCX is a privately-held company, of which the European Climate Exchange (ECX) is a wholly-owned subsidiary.