Crain's Chicago Business Interviews Lecturer Richard Sandor

'Father of carbon trading' predicts growth in clean-tech startups
Judith Nemes
Crain's Chicago Business
August 9, 2012

Richard L. Sandor was ahead of the curve in identifying the next big trend in finance, so many entrepreneurs are taking note of his enthusiasm for growth in green technology startups, particularly in the Midwest.

Mr. Sandor, 70, is widely known for his trailblazing work in the 1970s, when he developed the first interest rate futures contract and also served as chief economist and vice president of the Chicago Board of Trade. More recently, he's attempted to combine climate change concerns with financial forces.

Time Magazine called him the “father of carbon trading” after he designed and launched the Chicago Climate Exchange in 2003, the first financial exchange intended to encourage the reduction of greenhouse gases (GHG). Companies that joined the exchange traded GHG emission allowances and agreed to trim their emissions by 6 percent by 2010. The exchange stopped operating in 2010, but Mr. Sandor, as chairman and CEO of Environmental Financial Products LLC, is plowing ahead with developing new financial markets that focus on environmental issues.