Exchange-traded products for the EU Emissions Market Milano Energia Milan, 5 October 2005

1. Exchange-traded products for the EU Emissions Market Milano Energia Milan, 5 October 2005 Peter Koster, Chief Executive Officer, European Climate Exchange

2. Contents • Background on the European Emissions market; • Market characteristics: Volumes, Prices and Players • Introduction to the European Climate Exchange; • How do emissions relate to other energy markets? • Looking ahead: the carbon market & the future 2

3. European Climate Exchange • The European Climate Exchange (ECX) is a wholly-owned subsidiary of the Chicago Climate Exchange (CCX) which, in collaboration with the International Petroleum Exchange (IPE), offers a series of emissions products; • ECX Carbon Financial Instruments futures Contracts are listed and traded on the IPE and offers a pan-European electronic trading platform where industry and financial institutions can trade CO2 under the EU Emissions Trading Scheme; • ECX CFI futures Contracts are financially guaranteed by LCH.Clearnet; • At current prices, the EU carbon market has an annual baseline value of €50 bn in 2005; • ECX/ IPE has become the leading CO2emissions exchange in Europe with 38 million tonnes traded in the first five months of activity; • ECX, IPE and Powernext will co-operate to offer futures and spot contracts on an integrated screen. 3

4. Development of the EU Emissions Market 4

5. Market Development • Forward trading began in February 2003 and 10 MtCO2 were traded in 2004 –approximately 140 million tonnes CO2 traded first in the 9 months of 2005; • Market infrastructure: • Increasing numbers of market participants – 50-60 now active; • 9 brokers; • 7 exchanges; • All 25 National Allocation Plans now approved by EU Commission; • 11 National registries currently operational (fully or partly). • Companies from all industrial sectors included in EU Emissions Trading Scheme have traded at ECX/IPE. 5

6. Price and volume ECX 5 months activity = 42 million tonnes CO2 traded on ECX 6

7. Market Shares 7

8. IPE ECX CFI volatility 8

9. Correlation with other IPE markets 9

10. Correlation with other IPE markets (2) 10

11. How can you trade ECX CFI futures Contracts on IPE? • Trade directly as an IPE Member; or • Order-Route as a customer of an IPE Member or a Broker electronically (or place orders by telephone);

12. Members in ECX CFIs on IPE ABN AMRO Futures* Accord Energy ADM Investor Services International* Amerex Atel Trading Bache Financial* Banco Santander* Barclays Capital* Bear Stearns International* BHF Bank* BNP Paribas Commodity Futures* BP Gas Marketing Breakwater Trading Calyon Financial* Cargill Investor Services* Climate Change Markets* Credit Suisse First Boston (Europe)* Deutsche Bank* Dresdner Bank* E.On UK Electrabel Fimat International Banque* Fortis Bank Global Clearing* Goldman Sachs* ICAP* JP Morgan Securities* Kyte Broking MAN Financial* Marquette Partners (UK) Merrill Lynch International* Merrill Lynch Commodities (Europe) Mizuho Securities* Morgan Stanley & Co International* Optiver Refco Overseas* Saxon Financials Scottish Power Energy Management SEB Bank* Sempra Energy Europe Shell Energy Trading Shell International Trading & Shipping Smartest Energy Spectron Energy Services Starmark Trading TFS Derivatives Tradelink UBS* *Entities marked with a star are able to offer clearing services to third parties.

13. IPE ECX CFI futures - Contract specifications 13

14. Other information • INFORMATION VENDORS CODES: Bloomberg (MOA/EMIT)Reuters (0#CFI) CMS (UX) IDC (<17>t, UX) CQG (UX) IPE Energy Live (LUX) E-Signal/Futuresource (LUX) Telerate (GB@UX) • VAT: Interim TMO status received – transfers between the Member and the LCH.Clearnet will be zero-rated for VAT purposes. 14

15. Chicago Climate Exchange • Voluntary, legally binding pilot greenhouse gas trading program; • Includes emitters and specified offset projects in North America; • All six greenhouse gases included (converted to CO2e); • Emitters commit to cut 1% per year (achieve -4% in 2006); • Over 100 international companies have signed up for CCX membership inc Dupont, IBM, Stora Enso, Rolls Royce, Motorola, American Electric Power, Confederation of British Industry etc. 15

16. Looking ahead.. • By year end integrated platform ECX/ IPE (futures) and Powernext (spot); • ECX/ IPE plan to launch more emission derivatives: options and spreads; • EU ETS will foster the development of the CDM and JI market; • Carbon becomes an integrated part of the energy portfolio; • Linking Europe to other trading schemes. 16

17. Legal disclaimer • ECX/ IPE is seeking recognition from the Commisione Nazionale per la Societa e la Borsa (CONSAB) as a foreign market under Article 67(2) of Consolidated Finance Act. The application is currently pending; • The information given in this presentation is not, and is not intended to be, an invitation to access the market directly or via a non-Italian member; • The information given in this presentation is not, and is not intended to be, a solicitation or an offer to buy or sell any of the products that are traded on the market. 17

18. Thank You! For more information, please contact: • Albert de Haan, Commercial Director albert.dehaan@ecxeurope.com • Sara Stahl, Carbon Economistsara.stahl@ecxeurope.com Telephone: +31 (0)20 799 7990 Website:www.ecxeurope.com 18