The NACX was conceived in 2007 as a Calgary-based emission offset exchange. The founders of the NACX recognized that Alberta's and Canada's emerging emissions trading markets required a streamlined process for discovering price and effecting trades to meet the objectives of all participants. With the coming into existence of the Western Climate Initiative ("WCI") based programs in California and Quebec, there is a greater need than ever for an exchange focused on the spot market for these instruments. Initially, the NACX will facilitate the trading of emission offsets that are developed in accordance with Alberta's Specified Gas Emitter Regulation (the "Alberta Regulations"). The NACX will be trading offsets, available for settlement, in the spot market. The NACX will also facilitate spot market trading of other environmental compliance units as those instruments become available. The NACX is based in Calgary and is operated and managed by individuals with significant expertise and experience in emissions trading.
Owners or aggregators of projects that result in verified emission reductions or other environmental compliance units ("ECUs") may apply to the NACX to market their offsets or ECUs on the exchange. As a risk mitigation strategy, the NACX conducts an independent review of the Offset project documentation to ensure that the project owner or aggregator have followed the necessary steps to have the emission reductions verified in compliance with the Alberta Regulations and other applicable regulations and protocols and subsequently registered on the appropriate registry. Once this review has been completed, the verified emission reductions may be traded as "Offsets" on the NACX. This review gives regulated emitters and buyers the comfort of knowing that the Offsets have undergone a second level of review using a review process designed for NACX prior to the offsets being accepted and posted for trading. Emitters can purchase Offsets to meet their compliance obligations under the Alberta Regulations. Qualifying Voluntary Emitters can also purchase Offsets through the NACX to meet their corporate environmental footprint and trading objectives.
Key Objectives and Benefits of the NACX: