Climate Exchange trading soars, expands overseas

LONDON (Reuters) - British carbon credit exchange operator Climate Exchange Plc said on Wednesday that trading volumes at its two main exchanges rose from a year ago, and it made progress with international expansion plans.

Climate Exchange owns, operates and develops exchanges to facilitate trading in environmental financial instruments such as emissions reduction credits. Its two main businesses are the Chicago Climate Exchange (CCX) and the European Climate Exchange

(ECX).

First-half trading volumes on the ECX gained 250 percent from year-ago volumes, while volumes on CCX advanced almost 400 percent in the same period, the company said.

Overseas, trading began at the Montreal Climate Exchange, a joint venture CCX struck with the Montreal Exchange, while in India, trading began at the Multi Commodity Exchange.

It is also in "ongoing discussions" for opportunities in China, Climate Exchange said.

On carbon credit exchanges, firms agree to cut their production of carbon and other greenhouse gases linked to global warming by an amount that then becomes legally binding.

If they cut emissions more than targeted, they can sell the credits this generates to firms that over-pollute.

(Reporting by Hsu Chuang Khoo, editing by Will Waterman)