Emissions exchange operator Climate Exchange Plc has reported that trading volumes had soared in the past year, and its chief executive forecast continued growth despite a global economic slowdown.

UK-based Climate Exchange posted a pre-tax loss for the six months to end June of 304,000 pounds ($541,700), down from 2.8 million pounds for the same period in 2007, while operating revenues nearly doubled to 10.5 million pounds.

The company's flagship exchange, the European Climate Exchange (ECX), has seen volumes rise 150 percent to 1.07 billion tons of carbon dioxide traded in the first half of 2008.

"We've had a great first half (and) I'm pretty bullish about the foreseeable future," Chief Executive Neil Eckert told Reuters, adding that he does not see a slowdown in business.

Climate Exchange owns and operates exchanges in Europe (ECX) and the United States (Chicago Climate Exchange), and has joint ventures in China, India, Canada, Australia and Japan.

But shares in Climate Exchange have fallen around 45 percent since hitting a 3-month high of 20.41 pounds in late August, and analysts have expressed concerns about the company's rapid growth.

"Climate Exchange has been growing like stink, but there are a lot of ifs (surrounding emissions trading) and this staggering

valuation takes some justification," said one analyst who did not want to be named.  Continued...