Commodities Now Glossary

Central Japan Commodity Exchange (C-COM) - Central Japan Commodity Exchange (C-COM) is a unique commodity futures exchange, the only one in Japan that is licensed both by the Ministry of Economy, Trade and Industry (METI) for industrial commodities and the Ministry of Agriculture, Forestry and Fisheries (MAFF) for agricultural commodities. This enables the Exchange to offer a wide variety of products from industrial materials to agricultural products.

Calendar spread
 - The purchase of one delivery month of a given futures contract and simultaneous sale of another delivery month of the same commodity in the same market 8same commodity). The purchase of either a call or put option and the simultaneous sale of the same type of option with typically the same strike price but with a different expiration month.

California Global Warming Solution Act AB32 (AB32) The passage of Assembly Bill 32 (California Global Warming Solution Act AB32) in August 2006 sets economy-wide GHG emissions targets as follows: Bring down emissions to 1990 levels by 2020 (considered to be at least a 25% reduction below business-asusual) and to 80% of 1990 levels by 2050. Covering about 85% of GHG emissions, a cap and trade scheme (still under design) would be a major instrument, along with renewable energy standards, energy efficiency standards for buildings and appliances as well as vehicle emissions standards.

Call option - 
An option that gives the buyer the right, but not the obligation, to purchase (go “long”) the underlying futures contract at the strike price on or before the expiration date.

Candlestick charts - 
A charting method, originally from Japan, in which the high and low are plotted as a single line and are referred to as shadows. The price range between the open and the close is plotted as a narrow rectangle and is referred to as the body. If the close is above the open, the body is white. If the close is below the open, the body is black.

Cap and trade schemes set a desired maximum ceiling for emissions (or cap) and let the market determine the price for keeping emissions within that cap. To comply with their emission targets at least cost, regulated entities can either opt for internal abatement measures or acquire of allowances or emission reductions in the carbon market, depending on the relative costs of these options.

Capgemini - With around 120,000 people in 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want.

Capital Economics - Capital Economics supply independent economic analysis to institutional and corporate clients across the globe.

Carbon Budget The balance of the exchanges (incomes) and losses) of carbon between carbon sinks (e.g., atmosphere and biosphere) in the carbon cycle.

The Carbon Capture & Storage Association (CCSA) - was launched in March 2006 to represent the interests of its members in promoting the business of capture and geological storage of carbon dioxide (known as Carbon Capture and Storage, or CCS) as a means of abating atmospheric emissions of carbon dioxide and, potentially, as a means of enhancing the production of fossil hydrocarbons. From its base in London the CCSA brings together specialist companies in manufacturing & processing, power generation, engineering & contracting, oil, gas & minerals as well as a wide range of support services to the energy sector such as law, banking, consultancy and project management. The Association is a model for sectoral cooperation in business development and its existence is welcomed by government

Carbon Capture and Storage - CCS; the process by which CO2 emissions are captured from large scale energy conversion and industrial processes, transported by pipeline or other means, and injected into secure geological structures for permanent storage. CCS is a relatively young climate change mitigation option which has received increasing media attention over the past 18 months. However, CCS is ready to be deployed today. The different types of capture technology; pre- and post-combustion as well as oxyfuel have all been proven to differing degrees. Post- and pre-combustion are closer large scale deployment.

Carbon Cycle All carbon sinks and exchanges of carbon from one sink to another by various chemical, physical, geological, and biological processes.

Carbon Dioxide (CO2) - A colorless, odorless, non-poisonous gas that is a normal part of Earth's atmosphere. Carbon dioxide is a product of fossil-fuel combustion as well as other processes. It is considered a greenhouse gas as it traps heat (infrared energy) radiated by the Earth into the atmosphere and thereby contributes to the potential for global warming. The global warming potential (GWP) of other greenhouse gases is measured in relation to that of carbon dioxide, which by international scientific convention is assigned a value of one (1).

Carbon Dioxide Equivalent (CO2e) The universal unit of measurement used to indicate the global warming potential of each of the six greenhouse gases regulated under the Kyoto Protocol. Carbon dioxide—a naturally occurring gas that is a byproduct of burning fossil fuels and biomass, land-use changes, and other industrial processes—is the reference gas against which the other greenhouse gases are measured, using their global warming potential.

Carbon Intensity - The amount of carbon by weight emitted per unit of energy consumed. A common measure of carbon intensity is weight of carbon per British thermal unit (Btu) of energy. When there is only one fossil fuel under consideration, the carbon intensity and the emissions coefficient are identical. When there are several fuels, carbon intensity is based on their combined emissions coefficients weighted by their energy consumption levels.

Carbon Output Rate The amount of carbon by weight per kilowatt hour of electricity produced.

Carbon Sequestration The fixation of atmospheric carbon dioxide in a carbon sink through biological or physical processes.

Carbon Sink A reservoir that absorbs or takes up released carbon from another part of the carbon cycle. The four sinks, which are regions of the Earth within which carbon behaves in a systematic manner, are the atmosphere, terrestrial biosphere (usually including freshwater systems), oceans, and sediments (including fossil fuels).

Carrying charge (cost of carry) - 
For physical commodities such as grains and metals, the cost of storage space, insurance, and finance charges incurred by holding a physical commodity.

Carryover - 
Commodities not consumed during the marketing year and remaining in storage at the end of a period. These stocks are “carried over” into the next marketing year.