Greenmarket Exchange

Greenmarket Exchange (stylized as greenmarket-exchange) was a commodity exchange dedicated to trading carbon emission allowances. It was established in September 2009 as part of Bayerische Börse AG (the Bavarian Stock Exchange) in Munich, Germany. The platform facilitated the trading of European Union Allowances (EUAs) and Certified Emission Reductions (CERs), which are instruments created under the European Union Emissions Trading System (EU ETS) to price and reduce greenhouse gas emissions. The exchange was launched during a period of growing interest in carbon markets, but it faced significant headwinds. The broader European carbon trading market suffered from a series of setbacks, including a loss of confidence following the theft of emission certificates and value-added tax (VAT) fraud schemes. Additionally, an oversupply of allowances—largely due to generous free allocation by regulators—caused carbon prices to collapse. As a result, trading volumes on European exchanges plummeted to near zero, and the conditions necessary for a liquid exchange-traded market in emissions allowances failed to materialize. Bayerische Börse AG announced that it would cease carbon emissions trading on June 30, 2012. The closure of Greenmarket Exchange reflected the wider difficulties of the European carbon market at the time. The exchange is no longer active, and its website is defunct. The brand remains a notable example of an early European carbon trading venue that could not sustain itself amid regulatory and market challenges.

Greenmarket Exchange was founded in September 2009 as a commodity exchange (Warenbörse) under the umbrella of Bayerische Börse AG. Its purpose was to provide a regulated marketplace for trading carbon emission allowances, specifically European Union Allowances (EUAs) and Certified Emission Reductions (CERs). These instruments were central to the European Union's efforts to combat climate change through the EU Emissions Trading System. The exchange operated during a turbulent period for carbon markets. In the late 2000s and early 2010s, the European carbon market was rocked by several crises. The theft of emission certificates from national registries undermined confidence in the security of the system. Additionally, VAT fraud—often referred to as carousel fraud—caused significant financial losses and reputational damage. Perhaps most critically, a massive oversupply of allowances, primarily because governments allocated them freely to industry, led to a sustained decline in carbon prices. These factors combined to make exchange-based trading of carbon allowances increasingly unviable. By 2012, trading volumes on European carbon exchanges had dwindled to almost nothing. Bayerische Börse AG determined that the necessary conditions for a liquid exchange-traded market in emissions allowances were absent. Consequently, the company decided to terminate carbon emissions trading effective June 30, 2012. Greenmarket Exchange was shut down, and its operations ceased. The closure marked the end of one of Germany's few dedicated carbon trading venues. The brand is now defunct, though it remains a case study in the challenges facing early carbon markets.

• Greenmarket Exchange founded in September 2009 as part of Bayerische Börse AG.

• Bayerische Börse AG ends carbon emissions trading on June 30, 2012.

A specialized exchange for carbon emission allowances within the Bayerische Börse group.

• European Union Allowances (EUAs)

  Tradable units representing the right to emit one tonne of carbon dioxide equivalent under the EU ETS.

• Certified Emission Reductions (CERs)

  Credits from emission-reduction projects under the Clean Development Mechanism, used for compliance in the EU ETS.

1. 1Greenmarket Exchange on Wikidatawikidata.org
2. 2Greenmarket-Exchange – Wikipedia (German)de.wikipedia.org