I am Master student in Banking and Finance in Madrid, Spain.I am studying the European Emissions Trading which will take place in 2005. The Uk Emissions Trading is working since 2002. I am taking the English Trading model to study the European one which will be created in 2005.I am trying to research the pricing of the emission credits. My goal is to determine if the future market of "emissions credits" will function like the rest of commodities markets.How will futures will be determined? Which are the main factors that will determine the pricing of this credits or allowances?Is there an English developped market of futures and options in UK or any other "Emissions Trading Scheme" (in USA, Canada, Denmark...)?How will options will be priced?Thank you very much for your attention.

I know the Chicago Climate Exchange is supposed to launch soon, but can't say I'm familiar with the pricing models for emissions. I'd give the CCX a call, as I'm sure they can help.

QuoteOriginally posted by: gdepetrisI know the Chicago Climate Exchange is supposed to launch soon, but can't say I'm familiar with the pricing models for emissions. I'd give the CCX a call, as I'm sure they can help.CCX trading is to start on the 12th of december

QuoteOriginally posted by: cemonboI am Master student in Banking and Finance in Madrid, Spain.I am studying the European Emissions Trading which will take place in 2005. The Uk Emissions Trading is working since 2002. I am taking the English Trading model to study the European one which will be created in 2005.I am trying to research the pricing of the emission credits. My goal is to determine if the future market of "emissions credits" will function like the rest of commodities markets.How will futures will be determined? Which are the main factors that will determine the pricing of this credits or allowances?Is there an English developped market of futures and options in UK or any other "Emissions Trading Scheme" (in USA, Canada, Denmark...)?How will options will be priced?Thank you very much for your attention.very good question, I don't know if the right to pollute will be as hot of a commodity as the others....maybe.