Xpansiv, a leader in market infrastructure for the global energy transition, has launched trading of the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles (CCP) standardized carbon credits on its CBL spot exchange.
This significant launch marks an important step towards enhancing the transparency and accessibility of the voluntary carbon market (VCM).
The first-day trading saw participation from major entities such as Mercuria Energy America, ClimeCo, ElectroRoute, Valitera, South Pole, and Cross Stone Capital. A total of 37,606 metric tons of carbon credits were traded via the new CCP GEO contracts, indicating strong interest from global market participants.
The trades included the following, traded through their respective CBL CCP Global Emissions Offset™ (GEO®) registry-specific contracts:
- 10,000 tons of ACR,
- 15,606 tons of CAR, and
- 12,000 tons of VCS credits.
Additionally, there were 73,778 tons of bids and offers for the new contracts posted during the trading day.
Promoting High-Integrity Carbon Credits
CCP-labelled carbon credits are issued under programs and methodologies independently assessed through the ICVCM’s rigorous process. This ensures they meet high-integrity standards for additionality, accurate quantification of emission reductions and removals, permanence, and positive social and environmental impacts.
The introduction of these standardized contracts in Xpansiv platform aims to provide transparent price discovery and streamlined market access for buyers and sellers of ICVCM CCP-approved credits. Industry leaders have expressed strong support for this initiative.
Adam Raphaely, Managing Director of Mercuria Energy America, remarked that:
“The launch of Xpansiv CBL’s standardized contracts is an important step to provide transparent price discovery and streamlined market access to buyers and sellers of ICVCM CCP-approved credits.”
Alex Bryson, Head of Green and Carbon at ElectroRoute, noted that standardization efforts are likely to have a positive impact on the market and expressed enthusiasm about participating at an early stage.
The experts see these standardized contracts’ launch as a critical step towards enabling market participants to differentiate high-quality carbon credits within the VCM.
Market Response and Future Outlook
The new registry-specific GEO® standardized contracts from Xpansiv allow buyers to take delivery of CCP-approved credits from the American Carbon Registry (ACR), Climate Action Reserve (CAR), and Verra registries. These contracts are settled daily to Platts price assessments from S&P Global Commodity Insights, a leading price reporting agency in the carbon markets.
On the launch day, the CCP ACR contract closed at $2.25, the CCP CAR contract at $9.13, and the CCP VCS contract at $2.50. Russell Karas, Senior Vice President of Xpansiv, expressed gratitude for the participation of leading market stakeholders and highlighted the importance of high-integrity CCPs in revamping the VCM.
The ICVCM developed its Core Carbon Principles to establish a threshold for high-integrity project credits. The first set of seven qualifying CCP methodologies was announced by the ICVCM in June, with additional methodologies expected to be approved in the coming months.
Corresponding credits will immediately be deliverable into the respective CCP GEO contract when they are labeled as CCP eligible in their designated registry. As new programs are approved, additional CCP contracts will be introduced, further expanding the range of available credits for trading.
The market response to the new contracts has been positive, with significant trading activity and strong interest from market participants.
The standardized contracts are expected to play a crucial role in the development of the VCM by providing a transparent and efficient mechanism for trading high-quality carbon credits. This initiative is seen as a significant step in ensuring the integrity and effectiveness of carbon offset projects.
