Emissions exchange operator Climate Exchange said increased trading volumes on its European exchange will help maintain its profit in 2010, its chief executive said on Friday, according to Reuters. "We have maintained solid growth in spite of the economic situation and the lack of political progress and there is more upside than downside from here," Neil Eckert told Reuters, after the group reported 2009 results showing a swing to profit and a jump in volumes. The company's shares were among the top gainers in London on Friday, up 5.4 percent at 500 pence at around 1100 GMT, having earlier touched 535 pence. They had been in decline before Friday's results, shedding 25 percent so far this year. Climate Exchange owns and operates emissions trading marketplaces, including the European Climate Exchange (ECX), where volumes increased 82 percent to 5.1 billion tonnes in 2009. "The principal driver for growth and profitability is ECX. That is in strong profit and I see no reason why that won't continue," Eckert said. "The key thing we look at is open interest and that is still growing very strongly (...) Volume on the exchange will continue to grow so all the indicators are very positive indeed." But while 2010 had begun with improvements in European volumes, the U.S market continued to lag compared with the first half of 2009. "It's painful, it's like pulling teeth, but all the momentum is in the right direction," said Eckert, referring to the lack of progress in the United States in passing a climate change bill. The Senate is still debating climate change legislation which includes plans for a federal emissions trading scheme. If a U.S. scheme is not passed this year, Eckert expects existing regional markets in North America to expand or a national renewable energy credit market to emerge. Eckert said the group is giving "strong consideration" to trying to become the main auctioning platform from 2011 in the EU's Emissions Trading Scheme. The European Commission is considering auctioning emissions permits from 2011 over centralised platforms instead of giving them to power companies for free, leaked documents showed last week. "Whether or not we become the main auction platform it will just increase the amount of trade," Eckert said.
