SCX, Santiago Climate Exchange, is the first private initiative of its kind in the Southern Hemisphere, and the first to adopt the strictest criteria and methodologies for tracking the reduction of greenhouse gas emissions (GHG), worldwide. The overall objective is the creation and development of a large greenhouse gas emissions reduction industry in Chile. Throughout a clear methodology, the SCX will provide access to any individual interested in carrying out CO2 emission reduction projects, to issue carbon credits and simultaneously will allow companies to reduce their emissions through a cap and trade market. The creation of the SCX clearly delivers relevant information such as supply and demand, and the transaction price of CO2 equivalent (CO2-e) reduction tonnage, while providing traceability in the transacted reduction certificates.
How does it work?
The SCX is a non-mutual exchange, that is, brokers that operate and transact on it are not required to be registered shareholders. Transactions are allowed for a wide group of participants, from large corporations to individuals. In the long term, instruments such as derivatives are expected to be available, just as in developed markets.
Advantages of the SCX
1. The creation of green projects and funds is promoted.
2. Enables transparency in the transaction of emission reductions, with clear pricing and quality standards, certified by an independent party.
3. The inclusion of needed abilities and institutions required to reduce GHG emissions nationwide is available, and at an efficient cost level.
4. It supports the generation of GHG effect mitigation abilities, in both the private and public sectors.
5. SCX enforces a technical professional framework required for the reduction of GHG in a valid and cost effective manner.
6. Establishes an archive for the generation of emission reductions and their uses, incorporating traceable certificates which are open to the national and international community.
SCX in the beginning was a joint initiative of BTG Pactual and Fundacion Chile, both leaders in their respective fields. BTG Pactual has the experience and knowledge to the development of an open exchange stock transaction, competitive and diversified tools and the know-how of Fundacion Chile to develop methodologies to reduce emissions and work with multiple players that enable its validation and legitimacy.
Currently, SCX is also composed of eight member companies, all leaders in their categories: Copec, CGE, SK Enaex, Arauco, Concha y Toro, Sodimac, Vapors and Unimarc.
Concha y Toro