- World’s first environmental derivatives exchange
- More than 400 member organizations
- 10% owned by Goldman Sachs
- 10% owned by Generation Investment Management LLP
The Chicago Climate Exchange is the world’s first environmental derivatives exchange.1
The exchange is owned by the London-based Climate Exchange PLC which also owns the European Climate Exchange, Montréal Climate Exchange, and the Tianjin Climate Exchange. Approximately 10% of CCX is owned by Goldman Sachs and another 10% is owned by Generation Investment Management LLP.2
Founding of the Exchange
The institution that is today the Chicago Climate Exchange (CCX) began with a grant in 2000 from the Joyce Foundation, a leading philanthropy based in Chicago known for its innovative approach to public policy issues, which supported the inception, creation, feasibility and design of CCX.3
An initial grant of $347,000 was made to the Kellogg Graduate School of Management at Northwestern University to provide technical support to Dr. Richard Sandor and colleagues to examine whether a cap-and-trade market was feasible in the U.S. to facilitate significant greenhouse gas reductions, using a voluntary regional Midwest model from which national and international lessons might be drawn.
A second grant of $760,000 was provided in 2001 to proceed with a design phase, which ran through 2002 and involved more than one hundred professionals in the corporate, public, non-governmental and academic sectors, who worked with Dr. Sandor, his colleague, Dr. Michael Walsh, and others to develop a core set of rules, protocols and design elements that would underpin and shape a pilot reduction and trading design.4
In 2003, CCX launched trading operations, with the following 13 Charter Members:
- American Electric Power
- Baxter International Inc.
- City of Chicago
- Ford Motor Co.
- International Paper
- Manitoba Hydro Corp.
- MeadWestvaco Corp.
- Motorola Inc.
- Stora Enso North America
- Temple-Inland Inc.
- Waste Management Inc.
Through their CCX membership, the above organizations were first in the world to make legally binding commitments to reduce all six greenhouse gases, in the world’s first multinational multi-sector market for reducing and trading greenhouse gases.5
CCX is a U.S. corporation, and today remains the only emissions reduction and trading system for all six greenhouse gases and the only operational cap and trade system in North America. CCX membership includes over 450 leading entities. A 2009 briefing from Climate Exchange PLC declares this membership to represent 17% of Dow Industrials, 20% of US Utility sector, and 10% of Fortune 100 companies. The same briefing claims CCX has executed more than 11,000 trades as of 2009.
Board of Directors6
Warren Batts, Adjunct Professor of Strategic Management at the University of Chicago Graduate School of Business
- Former Chief Executive Officer of Tupperware Corporation
- Former Director, Allstate, Sears, Roebuck and Co., Sprint, British Columbia Forest Products, Temple Inland and International Minerals and Chemicals
Bruce H. Braine, Vice President – Strategic Policy Analysis for American Electric Power
- Director, International Emissions Trading Association (IETA)
Carole Brookins, Former United States Executive Director to The World Bank Group
- Chairman and Chief Executive Officer, World Perspectives, Inc.
- Former Member, North American Advisory Board, Rabobank International
Susan M. Cischke, Senior Vice President, Environment and Safety Engineering for Ford Motor Company
- Senior Vice President of Regulatory Affairs and Passenger Operations, DaimerChrysler
Ambassador Stuart E. Eizenstat, Former U.S. Ambassador to the European Union
- Head of international practice, Covington & Burling
- Former Under Secretary of Commerce for International Trade (1996-97)
- Former Under Secretary of State for Economic, Business and Agricultural Affairs (1997-99)
Les Rosenthal, Former Chairman, Chicago Board of Trade (CBOT)
Richard L. Sandor, Chairman and CEO, Chicago Climate Exchange
- Research professor at the Kellogg Graduate School of Management at Northwestern University
- Member, International Advisory Council of Guanghua School of Management at Peking University
- Former, Vice President and chief economist of the Chicago Board of Trade
Maurice Strong, Former Secretary General of the 1992 United Nations Conference on Environment and Development (the Rio Earth Summit)
- Former Under-Secretary General of the United Nations
- Chairman, Earth Council Alliance
- Former Senior Advisor to the President of the World Bank
Ambassador Clayton Yeutter, Former U.S. Trade Representative (USTR)
- Negotiated the U.S.-Canada Free Trade Agreement, the precursor to the North American Free Trade Agreement
- Former President and Chief Executive Officer, Chicago Mercantile Exchange
External Advisory Board7
Richard M. Daley, Mayor, City of Chicago
Ed Begley Jr.
Ernst Brugger, Founding Partner and Chairman of Brugger Hanser & Partner Ltd.
- Professor at the University of Zurich
Lucien Bronicki, Chairman of Ormat International
- Executive Committee of the Weizmann Institute of Science
- Member of the board, Ben Gurion University
Elizabeth Dowdeswell, Former Executive Director of the United Nations Environment Programme (UNEP)
- Former Assistant Deputy Minister of Environment Canada
- President & CEO of NWMO
- Visiting Professor at the University of Toronto
Jeffrey E. Garten, Former dean of the Yale School of Management
- Former managing director, Lehman Brothers
- Former managing director, Blackstone Group
Donald P. Jacobs, Former Dean of the Kellogg Graduate School of Management at Northwestern University
- Former Chairman of the Board of Amtrak
Joseph P. Kennedy II, Chairman and President, Citizens Energy Group
- Former Congressman, 8th Congressional District of Massachusetts in the U.S. House of Representatives
Israel Klabin, President, Brazilian Foundation for Sustainable Development
- Former mayor, Rio de Janeiro
- One of the main Brazilian organizers of the United Nations Conference on the Environment
Thomas E. Lovejoy, Chief Biodiversity Advisor to the President of the World Bank
- Lead Specialist for the Environment in Latin America, World Bank . From 1989 to 1992
- Scientific adviser to the Executive Director of the United Nations Environment Programme
Dr. Rajendra K. Pachauri, Director-General of The Energy Research Institute (TERI)
- Chairman, Intergovernmental Panel on Climate Change (IPCCC)
- Director, Indian Oil Corporation Limited (a Fortune 500 company)
David Moran, Vice president of ventures for the Electronic Publishing group of Dow Jones & Company
- President of Dow Jones Indexes
- Chairman, Dow Jones Sustainability Group Index GmbH
Michael Polsky, President and CEO of Invenergy
- Several positions, Bechtel Power Corporation
Rosemary L. Ripley, Founding Member of Circle Financial Group, LLC
Daniel Weiss, Co-founder and Managing Partner of Angeleno Group LLC (“AG”
- Attorney, O’Melveny & Myers in Los Angeles
Robert K. Wilmouth, President and CEO of National Futures Association (NFA)
- Former President and CEO, Chicago Board of Trade
Klaus Woltro, Vice President of the “Club of Vienna”
- Chief Executive Officer, Simmering Graz Pauker (SGP)
- Director, Sustainable Asset Management AG (SAM Global)
Michael Zammit Cutajar, Former Executive Secretary, United Nations Framework Convention on Climate Change
- Several positions, United Nations Conference on Trade and Development (UNCTAD)
- Part of the founding secretariat, United Nations Environment Programme (UNEP)
- Chicago Climate Futures Exchange® (CCFE®)
- European Climate Exchange® (ECX®)
- Montréal Climate Exchange™ (MCeX™)
- Tianjin Climate Exchange (TCX)
Electric Power Generation
Real Estate Investment
33 Asset Management B.V.
Arreon Carbon UK Ltd
Aeolus Fund II Master Fund, Ltd.
Green Power Marketer
- Chicago Climate Exchange, Inc. Affiliated Exchanges. http://www.chicagoclimatex.com/content.jsf?id=1621 [↩]
- Human Events. The Money and Connections Behind Al Gore’s Carbon Crusade. http://www.humanevents.com/article.php?id=22663 [↩]
- Chicago Climate Exchange, Inc. History. http://www.chicagoclimatex.com/content.jsf?id=1 [↩]
- Ibid. [↩]
- Ibid. [↩]
- Chicago Climate Exchange, Inc. CCX Directors. http://www.chicagoclimatex.com/content.jsf?id=67 [↩]
- Chicago Climate Exchange, Inc. External Advisory Board. http://www.chicagoclimatex.com/content.jsf?id=68 [↩]