Mumbai: The Multi Commodity Exchange of India (MCX) today launched active trading in carbon credit futures.

The carbon credits contract - ECX-CFI Mini - started trading with a contract expiring on December 15, 2008. The contract has a lot size of 200 tonnes. It will have an initial margin of six per cent and a daily price fluctuation limit of four per cent.

MCX is the first to trade in carbon credit futures listed in India.

Each unit of carbon credit, which now sells at 13-15 euros, represents a reduction of greenhouse gas emission by one metric tonne.

Carbon credits are permits developed nations buy to meet emission obligations under the Kyoto Protocol.

India, currently a net seller of carbon credits, is the world's second biggest source of the tradable pollution permits. India's carbon credit turnover is expected to touch Rs15,000 crore by 2012.

MCX has a partnership with Chicago Climate Exchange (CCX), which is run by Climate Exchange Plc of the UK.

MCX, promoted by Financial Technologies (India) Ltd, accounted for about 75 per cent of the total turnover of 24 Indian commodity bourses in the first 9 months of 2007-08, official data showed.

Citigroup and Merrill Lynch bought 5 per cent stake each in MCX in September 2007, valuing it above the Bombay Stock Exchange, at over $1.1 billion.