CME Group plans to launch CBL Core Global Emissions Offset (C-GEO) futures in March. As such, it is currently pending review.
“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.
“As our clients closely follow the implications of Article 6 and other developments in this space, we are responding to demand for scalable market-based solutions that will allow them to execute their reduction strategies more effectively.”
What will C-GEO futures focus on?
C-GEO will deliver energy, renewables, and other technology-based offset credits based on the Core Carbon Principles. Also, credits will roll forward each year for new projects and markets.
“The CBL Core GEO spot contract has been tremendously well-received, with more than 1 million metric tons traded since its January launch,” said Xpansiv Chief Commercial Officer Ben Stuart.
“The launch of CBL C-GEO futures will bring expanded risk management and forward pricing capabilities to the market, the benefits of which have been clearly demonstrated by the introduction of futures on our GEO and N-GEO spot instruments.”
What are carbon offsets? Why are they so popular?
If you don’t know how carbon offsets work, they are pretty simple to understand.
One offset is equal to one metric ton of carbon.
So, for every offset purchased, one metric ton of carbon is “offset” through an environmental project. Hence the term carbon offset. You are essentially neutralizing carbon emissions through something positive.
Many different projects count, like reforestation and agriculture. These projects are great for the environment and farmers, who receive compensation.
So, investing in carbon offsets is a win for all.
C-GEO futures will work with CBL GEO and N-GEO futures. Those funds were launched last year.
Both contracts traded more than 57 million tons of carbon. Also, they delivered 6.5 million offsets. There are about 230 million offsets available.
Xpansiv market CBL helped create C-GEO futures.