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CBL Acquires EMA Platform

CBL Acquires EMA Platform

SEPT 25, 2019

New Online Exchange to ‘Tag’ Natural Gas Based on Methane Emissions

A new exchange will allow natural gas traders to value the fuel based on methane emissions for the first time as the industry faces increasing pressure to help fight global warming. In the coming weeks, Xpansiv will launch an online trading platform that tags U.S. gas with data about its origin, CEO Joe Madden said. Certificates associated with that gas will be similar to renewable energy credits for electricity or the renewable identification numbers that are tagged to ethanol and other biofuels. “Until now you had no way to differentiate a molecule of gas,” Chief Operating Officer John Melby added. “You had no way to know how it was sourced or how it was produced.”
NOV 6, 2019

'Responsible' Gas Offers End-Users a Choice to Buy Environmentally Friendly Product

Xpansiv recently completed what it billed as the first exchange-driven transaction for an energy commodity based on its environmental impacts. In that deal, renewable energy firm South Pole bought responsible gas certificates from Carbon Creek Energy, whose wells have been certified to meet certain environmental standards by IES. The parties executed the trade on a platform operated by CBL, an Xpansiv affiliate. The transaction involved a package combining the underlying gas commodity with data about its environmentally friendly attributes, Xpansiv CEO Joe Madden said in an interview. “We’re talking about the first time you’ve attached attributional information, outside of electricity, to any mainstream commodity,” Madden said. “Think of it like what an MP3 is to music. You’ve created a data format that allows you to combine metadata with primary content the same way you combine a song with artist and title.”
NOV 26, 2019

Inside The Fast-Emerging Market For Intelligent Commodities

“Carbon today is the primary component for the production of fuels and electricity. Water is the key input factor across all agriculture products. Neither is valued in any conventional commodity price today,” says Joe Madden, Xpansiv CEO. This blind spot in commodity pricing is likely to change dramatically over the coming decade, driven by global resource constraints, increased demand for investments that screen demonstrably for ESG criteria, and the rapid proliferation of available (and increasingly standardized) data across financial asset classes. As a result, Xpansiv is building a parallel trading market for differentiated commodities—an “intelligent commodities” exchange. This evolution will add clarity and precision (and perhaps even more liquidity) to the multi-trillion-dollar market for global commodities, a market that still relies largely on analog trading infrastructure from more than a century ago, when data itself was the scarcest resource.
JAN 30, 2020

Airline Group to Launch Industry’s First CO2 Emissions Exchange

A group representing some of the world’s biggest airlines will launch the industry’s first carbon exchange, an effort to limit emissions amid pressure to fight climate change. The International Air Transport Association, whose more than 200 members include Delta Air Lines Inc. and cargo transporters, formed a partnership with Xpansiv to develop the Aviation Carbon Exchange (ACE).
JAN 30, 2020

IATA and Xpansiv’s CBL Announces the World’s First Airline Carbon Exchange

Xpansiv is thrilled to announce our partnership with IATA to help airlines achieve their carbon emission reduction goals,” said Rene Velasquez, Head of Global Carbon at CBL. “ACE is a level playing field for all airlines, eliminating complexities by providing an efficient solution for sourcing emission units—without needing to enter into contracts with disparate parties.

MAY 22, 2020

CFOs Are Measured on Two Metrics: EPS and ESG

Companies are looking at ways to embed ESG in their financial results. Many companies produce an ESG report, along with their annual financial reports. Others are now including ESG goals like net-zero emission commitments in their numbers. Driving this trend is Xpansiv, the global marketplace for ESG-inclusive commodities. The Xpansiv platform registers tradable commodity products containing ESG information as Digital Feedstock™… Xpansiv is the digital nexus where ESG goals and price signals merge.

JUNE 16, 2020

Environmental Products Bank of the Year: Macquarie

The bank is one of the cornerstone investors in Xpansiv, an innovative new commodity exchange that will link data related to the production of commodities to the actual physical product, creating markets in what it describes as ‘Intelligent Commodities.’ The exchange uses cryptography to link information such as the water used and the methane released by a shale plant operator to the natural gas it sells… By allowing buyers to see the specific environmental impacts of a commodity it is buying, the exchange promises to allow more sustainably produced commodities to command a premium price.

JULY 23, 2020

Paying a Premium: How Commodity Exchanges Are Going Green

By providing data traceability and asset registration, Xpansiv will allow the end consumer to track verified and certified environmental attributes up the supply chain.

JULY 29, 2020

Xpansiv Joins the InterWork Alliance

The InterWork Alliance announced the formation of its Sustainability Business Working Group, focused on standards and a trusted certification program to support global sustainability efforts. Xpansiv Head of Government Policy and Legal Cameron Prell represents Xpansiv as Vice-Chair.

AUG 7, 2020

Using Big Data and the Power of Markets to Solve Climate Change

We need to make radical transformations to the way we produce and consume the energy, food, and industrial inputs to reduce both the flow of new GHGs into the atmosphere and the stock of GHGs already there. Joe Madden, CEO of Xpansiv, makes a strong case that all the elements for a radical reduction – and eventual reversal – in the flow of new GHGs into the atmosphere already exists. Madden thinks that by shifting the way we measure the value embedded in commodities, we can unleash a nearly unimaginable revolution that will enable us to cut atmospheric carbon levels and maintain a climate conducive to a 2,000-calorie per day diet. All we have to do is rejigger our 19th century markets to align with 21st century technology and a modern understanding about environmental, social, and governance (ESG) factors.
AUG 3, 2020

The Evolution of Carbon Markets

Xpansiv correlates primary production information with verified external data to create an immutable record for each physical commodity that can be configured into innumerable digital ESG assets. By proving the origin of data so commodities can be valued according to their full life-cycle story… market participants can value energy, carbon, and water in an information-rich world.

SEPT 2, 2020

Voluntary Carbon Markets Taskforce Launched

Xpansiv COO John Melby joins private sector-led taskforce… launched to begin scaling Voluntary Carbon Markets, which need to be grown and consolidated to help meet the goals agreed in the Paris Climate Agreement.

SEPT 15, 2020

Xpansiv Joins Roundtable on Sustainable Biomaterials

Our platform is designed to reward the full value chain creating and using sustainable commodities — connecting growers, producers, end-users, buyers, data suppliers, and standards-and-certification organisations. [We’re] accelerating the transition to a circular, low-carbon economy.

SEPT 16, 2020

Carbon Offset Programs in Airlines — Fad or Future?

CBL is in a fortunate position because of our partnership with the International Air Transport Association (IATA). Together, we have developed the Aviation Carbon Exchange (ACE). The ACE is the first centralised marketplace for carbon offsets for the airline industry. It provides airlines with the ability to identify, select, and transact both voluntary and compliance carbon offsets via a simple, secure electronic interface. As a result, we count numerous airlines as clients. The ACE helps the sector by providing transparent price signals and actionable market insights to help build better market intelligence, thus ensuring airlines can meet their long-term decarbonisation goals.
OCT 5, 2020

Price Discovery in the Voluntary Carbon Market

Commodities spot exchange CBL, has announced the first trades of the GEO – a new carbon contract that sets a price on one metric tonne of CO2 equivalent (1 mtCO2e) based on real-time transactions.

OCT 5, 2020

Xpansiv Announces First Trades of CORSIA-Aligned GEO

Xpansiv on Monday announced the first trades of its CORSIA-aligned Global Emissions Offset (GEO) product on its spot exchange subsidiary CBL. Counterparties involved in the trades were Australia-based investment bank Macquarie and environmental market services firm AitherCO2. Xpansiv did not reveal the prices or volumes for the trade. Carbon credits dubbed Eligible Emissions Units (EEUs) and approved by UN body ICAO for compliance with the international aviation offset market CORSIA underpin the GEO product.

OCT 5, 2020

GEO Credits Aligned to CORSIA Parameters Trade on CBL

Global Emissions Offsets (GEO) — which can be used for the international aviation carbon reduction program known as CORSIA — traded twice Friday on the CBL platform, CBL parent company Xpansiv announced Monday. The trades were made at US$.85/mt and US$.81/mt, Xpansiv Head of Ecosystems and Data Partnerships Andy Bose told OPIS Monday.

OCT 6, 2020

CBL Announces First Trades of New Carbon Offset Contract

Commodities spot exchange CBL, has announced the first trades of the GEO – a new carbon contract that sets a price on one metric tonne of CO2 equivalent (1 mtCO2e) based on real-time transactions.

OCT 6, 2020

Xpansiv Announces First Trade of GEO on CBL

The lack of reliable, transparent price discovery in the voluntary carbon market has been a hindrance to the market, increasing transaction costs and limiting participation. The announcement of a global emissions offset contract by Xpansiv's CBL exchange is certainly a step in the right direction. Time will tell how widely the contract is adopted, and of course the devil will be in the detail of the contract specifications. Not all voluntary carbon credits are created equally!

OCT 13, 2020

Switching on to Carbon Offsets

Currently, liquidity in VCMs is fragmented. Projects have a range of attributes (e.g., project type, geography) that can influence their value, and buyers have different attribute preferences. In today’s market, matching each individual buyer with a corresponding supplier is a time-consuming and inefficient process, transacted over-the-counter…. Robust trade infrastructure is a vital precondition for the listing and high-volume trading of core carbon reference contracts (spot and futures), as well as contracts reflecting a limited set of additional attributes.… Exchanges should provide access to market data…. The Taskforce acknowledges the existing ICAO/CORSIA principles and the reference contract built on them—for example ‘GEO’ on CBL.

OCT 27, 2020

The GEO Carbon Offset Contract: A Giant Leap For Mankind

Xpansiv’s CEO, Joe Madden, is ahead of the curve. He and his colleagues announced the launch of a new benchmark carbon offset product at the end of August, and trading in the product — called the Global Emissions Offset or GEO — began this month. In effect, the GEO makes what has been a bespoke market into a scalable, standardized market based on assets with which participants are already comfortable and knowledgeable. Not only is the GEO a well-understood asset, it also transacts on an open, electronic trading platform that enables buyers and sellers to understand up front the pricing environment in which they are transacting. This is the dictionary definition of a fair, transparent market.
NOV 11, 2020

TSVCM Publishes Initial Recommendations, Calls for Feedback

Currently, liquidity in VCMs is fragmented. Projects have a range of attributes (e.g., project type, geography) that can influence their value, and buyers have different attribute preferences. In today’s market, matching each individual buyer with a corresponding supplier is a time-consuming and inefficient process, transacted over-the-counter…. Robust trade infrastructure is a vital precondition for the listing and high-volume trading of core carbon reference contracts (spot and futures), as well as contracts reflecting a limited set of additional attributes.… Exchanges should provide access to market data…. The Taskforce acknowledges the existing ICAO/CORSIA principles and the reference contract built on them—for example ‘GEO’ on CBL."

NOV 11, 2020

What is Happening to Scale up the Voluntary Carbon Markets?

Xpansiv, a global market for ESG-centric commodities, addresses this transparency challenge through its voluntary carbon trading platform CBL, which generates a real-time carbon price based on actual transactions. CBL hosts the Global Emissions Offset (GEO) that allows vetted buyers and sellers to trade carbon credits that meet standards developed by the aviation industry. “The GEO makes it easy to purchase offsets without having to perform time-consuming, resource-intensive due diligence on a project-by-project basis,” says Andrew Pisano, Xpansiv Vice President of Market Development. “The GEO represents a transparent, benchmark price signal for carbon, enabling intraday price monitoring and a reliable daily settlement price.”
NOV 19, 2020

Voluntary Carbon Offsets Trading Leaps 235% Y-O-Y on CBL

Trade in voluntary carbon offsets on CBL, a spot trading commodity platform for the credits, has leapt to 25.3 million since January, up by 235% compared to the same period in 2019, according to company data. The significant gain comes amid an increase in "new market participants and corporate clients looking for a simplified pathway to offset their carbon footprint," said CBL, an Xpansiv owned company. The recently launched GEO also drove trading volumes, CBL said.

NOV 19, 2020

Record Setter

Spot commodity exchange CBL recorded a new monthly volume record within the first two weeks of November, it said Thursday, with the activity boosted by the recent launch of its CORSIA-compliant Global Emissions Offset (GEO) contract. As of Nov. 17, the online bourse had handled 20,609 lots across all of its markets, which include carbon offsets, RECs, and water allowances. This exceeds the previous high of 20,263 CBL reported in March, and was well above both last month’s 10,829 lots and the 2,895 transacted in Nov. 2019. This month’s volume includes 3.6 mln carbon credits, while the bourse also reported that it has now traded more than 25 million spot VERs year-to-date – more than doubling its 2019 volume – thanks in large part to its GEO contract. CBL said around 500,000 tonnes of GEOs have changed hands since launch, with activity well supported with good market depth on both the buy- and sell-sides, pricing between $0.70 and $0.85 per tonne.

NOV 25, 2020

JetBlue Buys CORSIA-Eligible Carbon Offsets on ACE Platform

U.S. based airline JetBlue bought CORSIA-eligible carbon offsets Wednesday on the just launched Aviation Carbon Exchange (ACE) trading platform, owner International Air Transportation Association (IATA) said in a press release Wednesday. ACE is operated by CBL Markets, in connection with its legacy trading platform. JetBlue bought Verified Carbon Units (VCU) registered under the Verra Program from the Larimar Wind Project in Dominican Republic. The construction of the first phase of the project started in early 2015, and operations began in August 2016. The project's start date qualifies it as eligible for compliance in the pilot phase of the UN's aviation decarbonization scheme known as CORSIA. It was the first transaction on ACE.

DEC 18, 2020

S&P Global Platts to launch CORSIA offset price assessment

S&P Global Platts’ assessment follows exchange operator Xpansiv introducing its own offset product – the Global Emission Offset (GEO) – backed by CORSIA-approved programmes. S&P Global owns a significant share of Xpansiv, having invested in the nascent company in 2018. But representatives from Xpansiv told Carbon Pulse the GEO and CEC remain separate products, and that the company is not currently contributing to Platts’ assessment. Aircraft operators’ association IATA also last month launched its Aviation Carbon Exchange (ACE) to facilitate trade in both CORSIA-eligible and voluntary offsets.

DEC 18, 2020

State of the Voluntary Carbon Markets 2020 Second Installment

An Electronic Market exists when prices are discovered via orders placed on a trading platform. Financial regulators prefer a centralized, independent exchange like ICE, but a private platform like CBL Markets can also serve this function in the interim. Indeed, the consultation document explicitly mentions the CBL Global Emissions Offset (GEO), which uses the lowest-priced Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)-compliant offset as a proxy for a core carbon price.

JAN 11, 2021

Buoyed by climate politics, companies compete for cleaner fuels

"A while ago we came to the thesis and strong belief that people will care how a barrel of oil is produced and a bushel of corn is grown," said [Xpansiv President & COO John] Melby. "We set out to develop a [digital] platform that supports that and enables differentiated commodities to be priced differently.” Xpansiv, which was founded in 2016 and whose investors include BP and S&P Global, focuses on more than just natural gas. Using production data to create digital versions of a variety of commodities, it enables similar transactions on oil and plans to eventually do the same with water, cement, steel, hydrogen and sustainable aviation fuel.

JAN 13, 2021

Macquarie-backed Xpansiv readies $500m float

An ESG-focused commodity marketplace that counts Macquarie and BP's venture capital arm as investors has ruled off on a $52 million capital raising in advance of an ASX listing that's expected to value it at $500 million. Xpansiv CBL Holding Group said it closed a $US40 million ($52 million) raising this week and revealed its intention to launch an initial public offering this year. Fund manager sources expected the IPO would value the company north of $500 million, and the float is expected to take place in the second quarter of the year.

JAN 21, 2021

ESG-focused commodities platform Xpansiv in talks with mining majors

Just as Xpansiv gives gas producers the ability to create a certificate granting them credibility around the production attributes of the gas, such as low methane emissions, which would generate more certificates, so too could miners "effectively get paid" for having low fugitive emissions in their processes.

Both CBL and Xpansiv's water exchange H2OX set volume records in 2020 with strong growth in carbon, RECs and water, as more companies committed to net-zero goals, including airlines devastated by the pandemic. CBL traded a total of 31.37 million tonnes of carbon in 2020, increasing 217% year over year, it said in a recent 2020 review. "We see these carbon commitments expanding in 2021, encompassing measurable offsets and differentiated fuels valued according to environmental impact," CBL said in the annual review.

JAN 26, 2021

CME to launch CORSIA-aligned carbon offset futures contract

US-based exchange operator CME Group has partnered with commodities trading and data firm Xpansiv and will launch a futures contract for offsets eligible under the CORSIA international aviation carbon credit programme, the companies announced Tuesday. The derivatives offering, which will launch Mar. 1 pending regulatory review, will be based on Xpansiv’s Global Emissions Offset (GEO), they said in a joint statement.

“GEO futures will provide a regulated, market-based solution that can help address risk management needs for near-term emissions reduction strategies, as well as a standardised pricing benchmark to help facilitate long-term climate goals,” said Peter Keavey, Global Head of Energy at CME Group.

JAN 26, 2021

CME Group to launch global emission offset futures contract

U.S. exchange operator CME Group will launch a global emissions offset futures contract on March 1 to help establish a global price for carbon credits, it said on Tuesday. Many global companies such as oil majors Shell and BP have pledged to reach net zero emissions, but will need to buy or generate carbon credits to offset the emissions they are unable to cut from their operations.

Currently carbon offsets, which can be generated through schemes such as planting trees or switching to less polluting fuels for cooking, are traded in a small voluntary market, often on a project-by-project basis… A private sector task force on scaling up the voluntary carbon market said last year the market will need to grow 15-fold by 2030, with new trading products needed to enable organisations to meet goals set under the Paris climate agreement.

JAN 27, 2021

Carbon Offsets That Companies Are Gobbling Up Get a Futures Contract

With its Global Emissions Offset futures contract—ticker GEO—CME aims to illuminate a fast-growing market that has thus far operated in a black box via privately negotiated transactions, said Peter Keavey, CME’s global head of energy. “A lot of emissions trading and carbon-reduction projects are unique and regional in nature,” Mr. Keavey said. “Ultimately you need to develop a more global benchmark and viewpoint to harmonize the valuation and trading of offsets.”

Prices will be derived from transactions on a voluntary-offset exchange operated by Xpansiv, a firm that makes markets in data-based assets linked to energy, agriculture and ESG investing. The credits sold must have been verified by one of three carbon registries, organizations that uphold project standards and certify offsets.

Offset buyers on Xpansiv’s platform currently browse credits by price and project, said Andy Bose, the firm’s head of ecosystems and partnerships. Xpansiv, which won’t disclose prices until the monthly futures contracts begin trading on March 1, created a spot contract in conjunction with them. Both are intended to satisfy bulk buyers who care more about price per ton than provenance, Mr. Bose said.

JAN 27, 2021

Voluntary carbon market taskforce report targets quality, standardisation

Several exchange operators including CME Group are planning to launch core VER contracts in the coming months, while platforms such as Xpansiv’s CBL Markets are using the TSVCM guidelines to inform the development of its existing offerings.

JAN 27, 2021

Carney task force confronts concerns over carbon credits market

“Part of the objective is to put clear, transparent standards and benchmarks out there,” said [Taskforce chair Bill Winters]. Liquid reference spot and futures contracts, with daily, reliable price signals, must also be developed.

JAN 28, 2021

ESG-inclusive commodities set to grow: Xpansiv

Xpansiv is a commodity marketplace for ESG-inclusive commodity products and price information, and its main business units include XRegistries, XMarkets, and XSignals. "We're the infrastructure to support the integration of ESG-inclusive commodities into the broader commodity complex, in terms of derivatives and price data information," said Joe Madden, Xpansiv CEO.

XMarkets enables trading of renewable energy, carbon offsets, water and other ESG-inclusive commodities, while XSignals gathers the data to the traded commodities to provide more detail on what has gone into creating them. "Markets are tracking net zero commitments," Madden said. "You have a commitment, how are you going to meet it? It's not just marketing material—they're real commitments. We see that as the real driver here as to how you start to enable these new markets."

JAN 29, 2021

US' Occidental supplies first cargo of 'carbon-neutral crude' to India's Reliance

Oxy Low Carbon Ventures delivered 2 million barrels of "carbon-neutral oil" to Reliance Industries in India. The US company said it was the energy industry's first major petroleum shipment in which greenhouse gas, or GHG, emissions associated with the entire crude lifecycle, from wellhead to combustion, were offset. Oxy said this is a first step toward the "development of a net-zero oil" or "climate-differentiated crude oil," which will be produced through the capture and sequestration of atmospheric CO2 via industrial-scale direct air capture facilities and geological sequestration.

Oxy said the volume of offsets applied against the cargo was sufficient to cover the expected GHG emissions from the entire crude lifecycle including oil extraction, transport, storage, shipping, refining, subsequent use, and combustion. These offsets were sourced from a variety of projects verified under the Verra Verified Carbon Standard program, meeting eligibility criteria for the UN's International Civil Aviation Organization's Carbon Offsetting and Reduction Scheme for International Aviation, or CORSIA.

Xpansiv's CBL Global Emissions Offset, or GEO, contract saw a jump in traded levels over the week.

FEB 1, 2021

VCM Report: Offset prices hold firm as taskforce, Microsoft chart new course

A spokesperson for commodities trading and data firm Xpansiv said that prices for the company’s CORSIA-aligned Global Emissions Offset (GEO) have risen above $1.00 in recent days on heightened interest.

  • US-based exchange operator CME Group has partnered with Xpansiv and will launch a futures contract for offsets eligible under the CORSIA international aviation carbon credit programme, the companies announced Tuesday. The derivatives offering, which will launch Mar. 1 pending regulatory review, will be based on Xpansiv’s spot GEO contract, which itself is based on credits approved for use under the international aviation offset scheme CORSIA.
  • Oxy Low Carbon Ventures, a subsidiary of US-based Occidental Petroleum, delivered 2 mln barrels of carbon neutral oil to Indian conglomerate Reliance Industries, the companies announced Friday. Australian-headquartered investment bank Macquarie Group arranged the purchase and retirement of the undisclosed number of credits, which were derived from a variety of projects registered under Verra’s Verified Carbon Standard (VCS) and eligible for CORSIA.
FEB 4, 2021

Carbon Markets: Investable Projects Are Key to Growing the Voluntary Carbon Market. Xpansiv President John Melby Shows How It’s Done.

The launch of XCHG’s GEO offers what the voluntary carbon market has been pining for—a global benchmark providing a reliable price for carbon backed by credible emissions-reducing projects. This benchmark gives buyers assurance that offset products above this benchmark will result in measurable results, offering a viable path to compliance.

“As we started working with CORSIA, we found that a lot of the big energy companies and corporations saw that vetting process that ICAO and CORSIA had gone through as a great tool for them,” Melby said. “And that was a major breakthrough. That's when we started thinking about how to make it even easier for people to develop projects or to buy offsets by itself. Major companies like Verra, ACR, and Climate Action Reserve’s projects connect directly in, and that then enables us to create a single product that alternatively has a single price. And that's where the really interesting thing happens from a market perspective. When you have a single price, you can develop a forward curve, you have a price signal. And that enables investment in those projects.”

FEB 12, 2021

ClimateTech Updates For February 2021

I wrote about this amazing company last August in the article Using Big Data And The Power Of Markets To Solve Climate Change.

Xpansiv gathers traceable production data to differentiate clean commodities from dirty ones, empowering the free markets to decide what a low carbon footprint is worth. Xpansiv then provides investors a global market for an expanding ecosystem of proven environmental commodities like Renewable Energy Certificates, carbon offsets, and differentiated fuels.

With Xpansiv’s technology and framework in place, clean commodity producers can get paid for both the physical commodity and its digital twin – a tradeable asset that Xpansiv calls Digital Feedstock. The Digital Feedstock file contains data about production methods to create “Intelligent Commodities” that provide a clear path to net-zero. It’s a beautiful, brilliant idea that has the potential to be as disruptive to commodity markets as Napster was to record labels.