Carbon Credit Markets

Brian Rice's belief that 'business, environmental, and social interests are indelibly linked' led Rice Dairy to expand. In 2006, Rice Dairy LLC joined the Chicago Climate Exchange as a registered aggregator in order to provide carbon services to the Firm’s dairy clients. Click here for 2006 Press Release.

Chicago Climate Exchange

Chicago Climate Exchange (CCX®), launched in 2003, is the world’s first and North America’s only active voluntary, legally binding integrated trading system to reduce emissions of all six major greenhouse gases (GHGs), with offset projects worldwide. Click Here to find out more about the Chicago Climate Exchange. CCX Members are leaders in greenhouse gas (GHG) management and represent all sectors of the global economy, as well as public sector innovators. Reductions achieved through CCX are the only reductions made in North America through a legally binding compliance regime, providing independent, third party verification by the Financial Industry Regulatory Authority (FINRA, formerly NASD). The founder, Chairman and CEO of CCX is economist and financial innovator Dr. Richard L. Sandor, who was named a Hero of the Planet by Time Magazine in 2002 for founding CCX, and in 2007 as the "father of carbon trading."

CCX emitting Members make a voluntary but legally binding commitment to meet annual GHG emission reduction targets. Those who reduce below the targets have surplus allowances to sell or bank; those who emit above the targets comply by purchasing CCX Carbon Financial Instrument® (CFI®) contracts.

Rice Dairy, Offset Aggregator with the CCX

Brian and Pete became individual members of the Chicago Climate Futures Exchange (CCFE) upon inception in 2004, and became members of CCX shortly thereafter. They have more than just a financial investment in this space, they have attended events ranging from UNFCC (United Nations Framework Convention on Climate Change) to NCEP (National Commission on Energy Policy) in addition to auditing Environmental Finance courses at Northwestern's Kellogg School of Management. Brian currently sits on the CCX Trading and Market Operations Committee.

Rice Dairy has made this commitment because they feel that carbon markets will play an increasingly important role in dairy production, processing, distribution, marketing, and consumption. It is our goal to help dairy groups gain an understanding of their underlying carbon assets/liabilities; reducing exposure and identifying opportunities. Just as in dairy markets, our clients can rely on Rice Dairy for guidance, analysis, and execution services in the emerging carbon markets.

How it works

CCX Members that cannot reduce their own emissions can purchase credits from those who make extra emission cuts or from verified Offset Projects. Eligible agricultural projects include methane collection at livestock operations, no-till and low-till farming and grass planting.

Tradable carbon dioxide emission Offsets can be registered and traded at Chicago Climate Exchange by both Offset Providers and Offset Aggregators. An Offset Provider is an owner of an offset project or projects that registers those offsets directly on the exchange, and sells offsets on its own behalf. An Offset Aggregator is an entity that serves as the administrative representative, on behalf of offset project owners, of multiple offset-generating projects. Offset projects involving less than 10,000 metric of CO2 equivalent per year should be registered sold through an Offset Aggregator. The terms of the business and legal relationships between Aggregators and Project Owners are left to the discretion of those parties. All offset projects must be verified by a CCX-approved Verifier.