HomeCarbon CreditsXpansiv's Update: Spot GEO Surges by 52% as N-GEO Futures Rise by...

Xpansiv’s Update: Spot GEO Surges by 52% as N-GEO Futures Rise by 40%

Xpansiv’s CBL provided an update on its latest carbon markets results. The report provides an overview of recent activities in emissions, renewable energy credits, and compliance markets. It further details trading volumes, prices, and specific market movements across different regions and instruments.

In the space of renewable energy credits (RECs) trading, Maryland and New Jersey dominate. 

Trading Carbon Credits On The Rise

Last week witnessed a notable surge in spot and front-month CBL GEO futures contracts at 52%, surpassing the rise of the resurfacing CBL N-GEO at 40%. Both have experienced significant increases in trading volume and prices, with N-GEO poised to bounce back in pricing the broader nature-based sector.

CBL GEO standardized VCM contracts

However, the spot contract’s volume was traded OTC (over-the-counter) at higher prices. A substantial portion of CBL VCM’s volume was traded through its GEO benchmark contracts.

In particular, about 80% of CBL VCM 456,239-ton volume was traded. This included 207,863 tons via the N-GEO current and trailing vintage instruments.

For other important results, here are the key takeaways:

Project-Specific Transactions:

There are various project-specific transactions that occurred. Indonesian AFOLU credits closed at $6.95 while 2018 Brazilian nature credits at $3.00. Older vintage Brazilian nature and vintage 2001 Indian fuel-switching credits settled much lower at $0.35.

Gold Standard’s Announcement:

Gold Standard highlighted Rwanda’s issuance of a Letter of Authorization for a cookstove project. This achievement is historical, marking the first recognition of credits issued by an independent standard with an Article 6 authorization.

CME Group’s CBL GEO Emissions Futures: 

December GEO and N-GEO, under the CME Group’s CBL GEO emissions futures complex, both saw a 38% rally. The total trading volume across CBL GEO futures was nearly 3 million tons, significantly higher than CBL N-GEO futures’ over 1 million tons. 

CME Group CBL GEO Futures ContractsOverall, 4,461,000 tons were traded across futures, much lower than the previous week (9,897,000).

North American Compliance Carbon Markets

CBL works with environmental registries to facilitate the trading of both voluntary and compliance Renewable Energy Certificate (REC) contracts. It’s a type of carbon credits generated by choosing cleaner renewable sources over fossil fuels.

Xpansiv report’s highlighted the compliance REC market performance with the following results.

Maryland: Around 12,000 2023 Maryland solar credits were exchanged, with a closing price of $58.20 after multiple trades at $58.10. 

North American compliance marketsNew Jersey: Active trading occurred for both 2023 and 2024 vintage solar credits, with trades surpassing 1,000 credits at $209 and $222, respectively, before closing at $220.75 due to falling offers.

Xpansiv’s recent report on environmental markets outlines a notable surge in spot and front-month CBL GEO futures and CBL N-GEO. Trading volumes and prices for both have increased, signaling potential growth in the broader nature-based sector. Despite some fluctuations, CME Group’s CBL GEO Emissions Futures witnessed a significant rally, indicating a continued interest in emissions trading.

The dominance of Maryland and New Jersey in renewable energy credits trading, along with other transactions, underscores the diverse landscape within carbon credit markets.

Most Popular

CORSIA Carbon Credit Demand To Be 14x Larger Than Supply

The surplus of CORSIA-eligible carbon credits is projected to turn negative by 2030 unless new supplies become available, according to an analysis by Abatable. Currently,...

Wired for Change: AI, Energy, and the Decarbonization Dilemma

AI is a powerful force driving innovation across industries in today's rapidly evolving technological landscape. However, as AI capabilities expand, so does its appetite for...

U.S. Raises Tariffs on $8B China Imports: EVs, Batteries, and Solar Cells Included

The Biden-Harris Administration's Investing in America agenda has successfully spurred more than $860 billion in business investments. In line with this, the White House...

Yara Clean Ammonia Signs Historic Deal with India’s Greenko ZeroC to Ramp Up Green Ammonia Supply

Yara Clean Ammonia, the world’s largest trader and distributor of ammonia, has forged a long-term deal with India-based Greenko ZeroC (formerly known as AM...

What Is COP28? Key Issues to Watch Out at 2023 Climate Summit

After a record-breaking year of devastating effects of climate change, from record wildfires in Greece and Canada to floods in Libya, the United Nations...

Climate Disclosure: New Corporate Standards for a Net Zero World

As part of the world’s continued efforts to combat climate change and transition towards net zero, one important piece of the puzzle is new...

Carbon Pricing: Understanding The Economics and Trends of Fighting Climate Change

As global temperatures continue to rise, the urgency surrounding climate policies has intensified, thrusting carbon pricing into the limelight of climate discussions. The race to...

The EU Corporate Sustainability Reporting Directive (CSRD): Key Things to Know

Companies operating in the European Union will have to deal with new non-financial and sustainability reporting requirements starting January 2024 with the EU's Corporate...