European Environmental Markets plc (“EEM”), a new environmental commodities exchange platform operator, has today announced its entrance to the market. EEM will provide businesses and financial institutions with efficient, credible trading platforms and risk management tools for environmental commodities. The Company will be led by Adrian Rimmer, who joins from The Gold Standard Foundation, the international certification body for climate and sustainable development activities, where he has been Chief Executive since June 2010.
An entrenched regulatory structure and technology convergence has opened the door for a new entrant to the EU Emissions Trading Scheme (EU ETS), the world’s largest cap and trade scheme, representing more than 80% of the £30 billion global market for Greenhouse Gas emissions1, under which the CO₂ emissions of tens-of-thousands of major installations across Europe are regulated. The global market value increased by 15% in 2014 and is expected to rise by up to 50% in 2015 based in part upon higher prices and volumes of EU Allowances transacted, according to a recent report from Point Carbon, Reuters.
Following a two-year consultation and development of the most advanced transactional exchange technology in the market, EEM will offer the first fully regulated, automated spot trading platform for environmental commodities such as emissions permits. As the only spot-trading venue for the EU ETS, the Company has a significant opportunity to build market share and increase liquidity as intermediaries join and return to the market. EEM will also provide access to other regulated and CSR-driven environmental markets.
EEM has a number of acquisitions on the horizon and is the exclusive license holder and operator of the Global Environmental Markets (“GEM”) Exchange Trading Platform in Europe: a proven and innovative platform that is the result of more than two decades and tens of millions of pounds of investment in research and development.
Today’s launch coincides with EEM also announcing the appointment of Adrian Rimmer as Chief Executive Officer, with effect from April 2015.
With more than twenty years’ experience in the technology, finance and environmental sectors, Adrian has played a key role in establishing and building credibility in environmental markets, having previously led the Environmental Markets focus at ABN AMRO. He is internationally recognised as a thought leader on climate policy, sustainable development and environmental finance issues.
In his new role, Adrian will oversee the launch of EEM plc, reinforce the Company’s robust approach to market-place governance and entrenched regulation, and lead EEM in its acquisitive focus for business and revenue growth.
“Adrian has an enviable CV and an impressive track history as a leader in environmental finance and markets.
“His experience and leadership will enable European Environmental Markets plc to quickly realise its ambition to become the largest operator of environmental commodities exchange platforms globally.”
“Against the backdrop of positive market conditions and a robust regulatory environment, as well as EEM’s advanced technology platform, we have a clear opportunity to become the first-to-market spot exchange for environmental commodities.
“By combining advanced financial technology infrastructure and a tough approach to market-place governance, EEM is well placed to become the largest environmental commodities exchange in Europe, home to the world’s largest regulated emissions market.”