What was the Chicago Climate Exchange?

The Chicago Climate Exchange (CCX) was a voluntary, legally binding greenhouse gas emissions reduction and trading system. It was based in the United States, with offices in Chicago and Washington, D.C. The CCX was founded in the year 2003, and it ceased operations on December 31, 2010.

The CCX was designed to help companies reduce their greenhouse gas emissions by providing a market-based mechanism for trading emission credits. Companies that reduced their emissions could sell their excess credits to companies that needed them to comply with their emissions caps.

The CCX was the first global, voluntary, legally-binding greenhouse gas emissions trading system. It was modelled after the successful U.S. Acid Rain Program, which had significantly reduced sulfur dioxide emissions from power plants.

The CCX had more than 400 member companies, representing a wide range of industries, including power generation, manufacturing, and transportation. Member companies were required to set emission reduction targets, track their emissions, and verify their emission reductions.

The CCX was successful in reducing greenhouse gas emissions. In its first five years of operation, the CCX helped to reduce greenhouse gas emissions by more than 100 million tons of carbon dioxide equivalent.

The CCX was closed on December 31, 2010, because of a lack of federal legislation creating a mandatory cap-and-trade system for greenhouse gas emissions. The CCX was unable to operate effectively in the absence of a federal cap-and-trade program.

The legacy of the CCX is that it demonstrated that a market-based mechanism for trading greenhouse gas emissions can be successful in reducing emissions. The lessons learned from the CCX have been used to design other emissions trading systems around the world.