OTC Emissions

The Kyoto Protocol entered into force on 16 February 2005 and marked the beginning of a new period in carbon trading. Since inception these markets have experienced significant growth - growth that has seen a nascent market swell to a traded value in excess of €100 billion in 2008.

LCH.Clearnet’s emissions service provides independent multilateral netting and clearing for the global OTC spot and forward carbon allowance markets. We intend to become an integral part of the carbon market through a continuous programme of development that will be driven by our users.

Our focus on OTC transaction flow allows us to clear EUA’s and CER’s, previously concluded by bilateral parties through OTC brokers or directly, thereby minimising counterparty risk for emissions traders.

Access to this service can be arranged quickly and simply by discussing your requirements with your preferred LCH.Clearnet Clearing Member and participating OTC broker.