Xpansiv to Launch Two-Way Trading for Carbon Credits and International RECs
Platform Enhancements, Including ACR Removal Tags, Added as Active Participants Sets Record
- Live bids and offers will enhance active, transparent price discovery and centralized liquidity formation on Xpansiv CBL, the largest spot exchange for carbon offsets and RECs
- Active companies trading offsets on CBL up 21% YoY in Q2
- ACR removal credits now tagged in portfolio management system to support fast growing market segment
- ACR non-removal credit volume on CBL has grown 30x YoY
NEW YORK, LONDON, SYDNEY – Xpansiv, the leading market infrastructure provider for the global energy transition, will enable live bids on its CBL spot exchange, providing powerful trade execution and price improvement capabilities to corporate buyers and other VCM and I-REC market participants.
Additionally, ACR verified removal credits are now uniquely tagged in Xpansiv’s EMA multi-registry portfolio management system to simplify trading, management, and retirement of these highly sought after credits.
These upgrades to Xpansiv’s environmental markets infrastructure are being rolled out as active traders on the exchange set a record in the second quarter of 127 discrete entities, up from 105 in Q2 2022.
“We believe it’s important to provide a transparent venue to match supply and demand, particularly with the number of active participants on our exchange continuing to grow,” said Beth Sendra, Senior Vice President, Platform Product & Strategy, Xpansiv. “Innovative trading and position management tools are critical for our clients to stay with and expand their climate programs, while supporting our common mission of accelerating the global energy transition.”
Live bids enabling two-way markets for project specific credits and I-RECs will be launched in October. Currently, two to three million tons of project-specific credits from approximately 500 global offset projects are posted to the exchange daily.
Xpansiv’s environmental markets infrastructure includes the EMA portfolio management system, which market participants use to manage positions, transfer, and retire credits and RECs across 12 integrated registries.
The system is widely used in the environmental markets. More than 1 billion transfers were made using EMA in each of the last two years.
EMA now incorporates a unique tag for removal credits from ACR. The new tag will enable system users to more easily track and manage removal credits within the system and list them on CBL. The removal tags will also be added to the CBL exchange screen early next year.
“We are pleased to see the verified removals label we use on our registry is now integrated with Xpansiv’s EMA portfolio managements system,” said Breffni Lynch, Director of Registry Operations at ACR. “The market has signalled demand for labelled removal credits that are transparently accounted for and verified, so ACR is delivering these through nature and technology-based solutions. Making ACR credits accessible via Xpansiv’s integrated registry architecture, systems, and exchange facilitates the purchase and retirement of ACR-issued credits, delivering efficiencies and benefits to all market participants.”
Aside from carbon removal instruments, trading volumes of ACR’s industrial process and technology credits have surged on CBL this year. More than 3.5 million tons of CORSIA-aligned ACR credits have traded this year on CBL, an increase of more than 30 times from last year’s total.
ACR and its sister Winrock enterprise, the Architecture for REDD+ Transactions (ART), are the only two crediting programs approved by ICAO to supply post 2020 units to the pilot phase and the first compliance phase of CORSIA, which will go into effect in 2024.
About Two-Way Markets
Carbon credit markets are typically one sided with offsets offered into the market. Xpansiv’s CBL spot exchange launched two-way markets, with live, executable bids and offers, in March 2020, when it debuted its Global Emissions Offset™ (GEO®)—the first standardized contract in the voluntary carbon market.
Live bids allow buyers to post a bid below the offer price enabling their bid to be hit by a seller. This passive capability enables the buyer to purchase credits at a better price than if he or she had to lift the prevailing offer.
Xpansiv operates the market infrastructure to rapidly scale the world’s energy transition. The company runs the largest spot exchange for environmental commodities, including carbon credits and renewable energy certificates. It is the premier provider of registry infrastructure for energy, power, and environmental markets. It also operates the largest independent platform for managing and selling solar renewable energy credits in North America.
Xpansiv is a leading provider of transaction and advisory services in global carbon, renewable energy, and energy transition markets through its Carbon Financial Services and Evolution Markets units. It also operates the leading multi-registry, multi-asset environmental portfolio management system and market data service.
Xpansiv’s rules-based markets and infrastructure enable stakeholders to deliver transparent, credible, and auditable environmental claims to address the growing global demand for assurance and accountability on climate action and sustainability performance.
For more information, please visit Xpansiv.com