CME To Launch Nature-Based Global Emissions Offset Futures
CME Group, the world’s leading and most diverse derivatives marketplace, announced it will launch a Nature-Based Global Emissions Offset (N-GEO)™ futures contract on August 1, 2021, pending all relevant regulatory reviews. N-GEO futures will be the company’s latest market-based solution to help create a more transparent and efficient voluntary emissions offset market.
Manage climate risk related to carbon emissions. Introducing CBL Nature-Based Global Emissions Offset (N-GEO) futures ‒ a reliable, cost-efficient way to access nature-based carbon offsets. https://t.co/qAUwUnTu0K
— CME Group (@CMEGroup) June 21, 2021
“More companies are relying on nature-based offsets as part of their overall climate strategies as the move to net-zero emissions continues to accelerate,” said Peter Keavey, Global Head of Energy at CME Group. “By offering a standardized mechanism for managing the price risk associated with those initiatives, our new N-GEO futures will provide the marketplace with an important tool to help navigate the ongoing energy transition.”
N-GEO futures were jointly developed with Xpansiv market CBL, a leader in spot energy and environmental markets. Xpansiv launched the Nature-Based Global Emissions Offset (N-GEO) spot contract earlier this year, which is based on eligible voluntary offsets from Agriculture, Forestry, and Other Land Use (AFOLU) projects with additional Climate, Community, and Biodiversity (CCB) accreditation.
“Following the rapid market adoption of the GEO, we launched the N-GEO in response to rising demand for nature-based solutions,” said Xpansiv President and COO John Melby. “It brings transparency and price certainty to a vital subset of the offset market, and N-GEO futures will further empower participants to meet climate commitments while promoting biodiversity and supporting developing communities.”
A variety of solutions have emerged to help meet net-zero targets, including projects that protect or restore natural ecosystems, which remove greenhouse gases from the atmosphere. The purchase of nature-based voluntary offsets allows businesses to finance natural climate solutions while transitioning to more sustainable business practices.
The Nature-Based GEO futures will allow for delivery of eligible voluntary offset credits and will be listed by and subject to the rules of NYMEX. For more information and contract specifications, please visit www.cmegroup.com/n-geo.
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Corporate Sustainability Reporting Directive elevates sustainability information to same level as financial.
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With Ankit Mittal, Business Change Manager, Global Trading, Schroders