First ICVCM CCP® Standardized Contracts Begin Trading on Xpansiv’s CBL Spot Exchange

First ICVCM CCP® Standardized Contracts Begin Trading on Xpansiv’s CBL Spot Exchange

NEW YORK, LONDON, SYDNEY  — Xpansiv, the leading market infrastructure provider for the global energy transition, launched trading of standardized Global Emissions Offset™ (GEO®) contracts aligned with the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles (CCP) on its CBL spot exchange yesterday.

Mercuria Energy America, LLC, ClimeCo, ElectroRoute, Valitera, South Pole, and Cross Stone Capital were among first-day participants in the new contracts.

A total of 37,606 metric tons were traded via the new CCP GEO contracts amidst widespread interest from market participants globally. The transactions included 10,000 tons of ACR, 15,606 tons of CAR, and 12,000 tons of VCS credits traded through their respective CBL CCP GEO registry-specific contracts. A total of 73,778 tons of bids and offers for the new contracts were posted to the CBL screen during the trading day.

CCP-labelled carbon credits are issued under programs and methodologies independently assessed through the ICVCM’s process to meet high-integrity additionality, quantification of emission reductions and removals, permanence, as well as positive social and environmental impact criteria.

“The launch of Xpansiv CBL’s standardized contracts is an important step to provide transparent price discovery and streamlined market access to buyers and sellers of ICVCM CCP-approved credits,” said Adam Raphaely, Managing Director, Mercuria Energy America, LLC. “Mercuria is pleased to support innovative market-based mechanisms, such as CBL’s new CCP instruments, that have the potential to accelerate and scale climate finance critically needed to drive decarbonization globally”.

“Standardization efforts such as this contract are likely to be very positive for the market, and we are pleased to participate at an early stage, ” said Alex Bryson, Head of Green and Carbon, at trading company ElectroRoute.

“We are pleased to support the launch of Xpansiv’s CBL’s new ICVCM’s Core Carbon Principles-aligned benchmark contracts,” said Vincent Verweij, Co-head of Carbon Markets at Valitera. “The Core Carbon Principles, and their corresponding standardized contracts, are an important validation of the voluntary carbon market, which we think will be a useful paradigm for new companies entering the VCM as well as for veteran participants.”

“We support the roll out of Xpansiv CBL’s CCP standardized contracts, which is an important step in enabling market participants to differentiate high-quality credits within the VCM,” said Tyler Hogan, COO/co-CIO of Cross Stone Capital, a leading VCM market maker. “Standardized, exchange contracts are often pivotal to the growth of markets, and we are optimistic the new contracts will play that role in the development of CCP credit trading.”

“We are grateful for the participation of leading market stakeholders in developing our innovative, registry-specific CCP GEO contracts, and particularly to those participants that traded the new contracts on day one,” said Russell Karas, Senior Vice President, Xpansiv. “The ICVCM CCPs are a clear signal of high-integrity carbon credits. They hold the promise of revamping the VCM as additional methodologies are approved and as market participants become familiar with the CCP paradigm and the available streamlined trading instruments, including our standardized contracts.”

The ICVCM developed its CCPs to establish a threshold for high-integrity project credits. The first set of seven qualifying CCP methodologies was announced by the ICVCM in June.

Additional methodologies are expected to be approved in the coming months. Corresponding credits will immediately be deliverable into the respective CCP GEO contract when they are labeled as CCP eligible in their designated registry.

Xpansiv CBL’s new registry-specific GEO® standardized contracts enable buyers to take delivery of CCP-approved credits from the ACR, Climate Action Reserve (CAR), and Verra registries, respectively. New CCP contracts will be introduced as new programs are approved.

The new CCP standardized contracts are settled daily to Platts price assessments from S&P Global Commodity Insights (SPGCI), the leading price reporting agency in the carbon markets.

The CCP ACR contract closed at $2.25, the CCP CAR contract at $9.13, and the CCP VCS at $2.50.

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Markets Contact: exchange@xpansiv.com