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CBL provides access to the world’s energy and environmental markets. With a vision of bringing efficiency, transparency and liquidity to environmental markets, we connect buyers and sellers around the world to facilitate the secure and seamless trading of products in environmental commodity markets.

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H2OX supports efficient, transparent trading of water entitlements and allocations in Australian water markets. By introducing state of the art technology to the sale and purchase of water and associated products, H2OX has streamlined the market, providing independence, efficiency, transparency and 24/7 real-time trading to owners and users of water.

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Aviation Carbon Exchange is a partnership between CBL and IATA to provide a marketplace for emissions-compliance obligations under the Carbon Offset Reduction Scheme for International Aviation (CORSIA). CORSIA addresses the increase in total CO2 emissions from international aviation above 2020 levels.

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OTX is a leading market-access provider for compulsory stockholding obligations (CSO) tickets—a product related to the oil sector regulation. OTX is rapidly expanding into markets for renewable fuels and renewable-fuel certificates.

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Environmental Management Account (EMA) is a comprehensive portfolio-management platform with a unique account structure that makes it easy to consolidate and transact environmental commodities across multiple regulatory regimes, all from one intuitive interface.

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The JSE Ventures Carbon Market is a comprehensive marketplace for buying and selling carbon and renewable energy credits via Xpansiv CBL, the largest venue for environmental commodities. The marketplace provides direct access to hundreds of live carbon credit and renewable energy certificates (RECs) on a live marketplace with full depth-of-market view and online order types.

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CFTC VCM Event Highlights Need for Evolving Exchange Products

The following is a LinkedIn post from Russell Karas, Head of Commodities at Xpansiv. Russell participated in the CFTC’s 2nd Voluntary Carbon Market Convening on July 19th in Washington, D.C.

Yesterday’s 2nd Voluntary Carbon Market Convening by the Commodity Futures Trading Commission (CFTC) brought together thorough and thoughtful panelists from a wide range of backgrounds, including governmental bodies, NGOs, registries, trading firms, ratings agencies, and exchanges. I was pleased to participate on behalf of Xpansiv.

At the forefront of this conversation was the urgent need to leverage on-going global efforts to provide guidance to purchasers of offset credits. The market is looking for integrity standards, and there has been considerable recent progress on this front. Participants at the Convening demonstrated broad support for initiatives such as the Carbon Offsetting and Reduction Scheme for International Aviation  (CORSIA), Voluntary Carbon Market Integrity Initiative (VCMI), and Integrity Council for the Voluntary Carbon Market (ICVCM).

The VCMI advises firms how to use offsets while the ICVCM provides guidance on what types of credits to use. The VCMI recently issued guidance that CORSIA credits from the Pilot and First Compliance meet the requirements of “Purchase and Sale of High-Quality Carbon Credits” in their Claims Code of Practice. The ICVCM also announced in March that CORSIA will factor into their approval process for programs/registries.

But it was CORSIA, which is backed by the UN’s International Civil Aviation Organization (ICAO), that headlined the discussion. The program is preparing to enter its first compliance phase in 2024, and its Technical Advisory Body (TAB) has done the hard work of establishing VCM ground rules for the airline industry.

As the industry prepares to enter its first Compliance Period under the TAB’s new standard, the underlying voluntary carbon offset products will adapt. This includes the Xpansiv Global Emissions Offset (GEO) contract, which uses CORSIA as its foundation. We are currently working on the next iteration of the GEO for use in the first CORSIA Compliance Period, and we welcome market input into the contract design.

Having synergies across these three crucial standards is necessary for new and existing market participants to navigate this market. As an exchange, Xpansiv looks forward to offering products that align with goals outlined through CORSIA’s compliance phases, the ICVCM, and the VCMI.