“We are seeing an astonishing inflow of new clients. Probably our biggest challenge at the moment is keeping up with the speed of new participants that are coming into the market because we need to onboard them and undergo the KYC checks and do the background registration,” said Henrik Hasselknippe, head of markets at Xpansiv.

Prices on Xpansiv’s CBL market for its Global Emissions Offset Contract rose from less than US$1 at the lowest point in 2021 to close the year at US$8, while its Nature-Based Global Emissions Offset rose from a low of less than US$5 to end at US$15 – some of the biggest price rises seen in any commodity in 2021.

“There is a significant amount of capital coming into the space and it is a direct result of the introduction of financial instruments that the market knows how to use and immediately recognises,” Hasselknippe said.