CME Group to Launch Trading of Emissions Offset Futures

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by | Feb 9, 2022

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CME Group, a marketplace for trading futures, options, and more, recently announced it will launch CBL Core Global Emissions Offset (C-GEO) futures on March 7, 2022, pending all relevant regulatory reviews. CBL C-GEO futures are intended to align with the Core Carbon Principles, an emerging set of transparent and consistent standards around the supply of carbon credits to be overseen by the Integrity Council for the Voluntary Carbon Markets.

“CBL C-GEO futures are the latest in our suite of risk management tools to help bring standardized benchmarks to the rapidly evolving voluntary carbon markets,” said Peter Keavey, Global Head of Energy and Environmental Products at CME Group, in a press release.

CBL C-GEO futures complement CBL GEO and N-GEO futures, which launched last year. In 2021, over 57 million tons of CO2 equivalent were traded between the two contracts, with over 6.5 million offsets delivered through seven successful cycles. The pool of offset credits that underpin the CBL GEO, N-GEO and C-GEO contracts is deep, with approximately 230 million offsets available across these three different segments, offering participants choice in effectively meeting reduction targets.

C-GEO futures were jointly developed with Xpansiv market CBL. The contract will allow the physical delivery of energy, renewables, and other technology-based voluntary carbon offset credits that meet quality and integrity criteria based on the Core Carbon Principles. The vintage eligibility of the credits will roll forward on a yearly basis, ensuring that the deliverable credits reflect evolving projects and markets.

CBL C-GEO futures will be listed by and subject to the rules of NYMEX.

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