The CBL Nature-based Global Emissions Offset (N-GEO) futures contract is the clear frontrunner to become the de facto benchmark of the voluntary carbon market with traded volumes, open interest and participant numbers all up in the past year, said CME Group.
Owain Johnson, CME’s global head of research and product development, said the N-GEO’s popularity was a result of the corporate appeal for nature-based solutions, which typically carry more co-benefits than renewable energy projects, and the fact it relies solely on the Verra registry, which facilitates client onboarding.
The Global Emissions Offset (GEO), which was the first benchmark created by CBL—CME’s partner—and the first futures launched by CME, has seen lower trade activity than the N-GEO, with the gap between the two widening in the last few months.
“The nature-based N-GEO is the frontrunner in terms of traded volumes, open interest, and participant numbers,” Johnson said.
A major global carbon credit marketplace has partnered with a ratings agency to host grades for voluntary carbon market offsets on its site, it announced Thursday. Xpansiv CBL has teamed up with BeZero to show ratings from more than 230 projects from all major accreditors.
“Our XSignals service provides the highest quality VCM data, combining CBL transaction data and supporting data from a growing network of partners,” said Andy Bose, Head of XSignals. “Integrating BeZero Carbon ratings will provide clients with even deeper data to evaluate credit quality across various project types—an important development on the road to net zero.”
Carbon prices are no different from other commodities and look set to rise amid a wider rise in inflation and interest rates, a panel said Tuesday. Carbon prices should start to track higher after a recent selloff and are already showing signs of rebounding, panel members told an audience at a webinar organised by environmental asset-focused exchange Xpansiv.
Emsurge Carbon Marketplace has originated its first deal that was concluded in partnership with the CBL exchange, it announced Tuesday. The trade for 50,000 REDD credits was settled through CBL’s post-trade processing platform. Xpansiv’s CBL offered a way to finalise the deal quickly while work on the documents for future trades was completed.
“By working together (with the CBL platform), our clients can choose to streamline post-trade processes and ensure they never miss out on an opportunity due to time-lags, performing know your counterparty, credit and contractual due diligence,” said Melissa Lindsay, founder and chief executive of Emsurge.
Intertek, a leading Total Quality Assurance provider to industries worldwide, is proud to join Xpansiv’s new Digital Fuels™ Program and deliver data quality assurance, carbon intensity benchmarking and independent certifications. Xpansiv, the global marketplace for ESG commodities, recently launched Digital Crude Oil™ (DCO), the latest addition to the company’s Digital Fuels (DF) Program. DCO units registered on the Xpansiv DF Registry enable markets to differentiate crude oil based on greenhouse-gas emissions and ESG performance.
“We welcome Intertek as a partner in our Digital Fuels Program,” said Xpansiv Sustainability Director Jeff Cohen. “The confluence of Xpansiv’s digital-commodities platform and Intertek’s quality-assurance experience enables unprecedented emissions transparency. Digital Crude Oil empowers the industry to accelerate-and profit from-low-carbon production.”
Contributed article by Xpansiv CFO Suzy Taherian
Buying offsets doesn’t mean companies stop pursuing other green initiatives. Carbon offsets offer a risk-management tool akin to buying fire insurance or hedging foreign exchange risk. CFOs purchase cybersecurity insurance, but that doesn’t mean they abandon strong cybersecurity policies, teams, and controls. Similarly, purchasing carbon offsets allows CFOs to reduce their companies’ immediate carbon footprints while continuing to advance other long-term strategies for technology innovations and operational improvements that reduce emissions.
The choice for many industries is to do nothing or to offset their carbon footprint while emission-abatement technologies are developed. Between “do nothing” and “do something,” the choice is clear.