WASHINGTON, June 17, 2022–(BUSINESS WIRE)–Nodal Exchange announced today the successful listing of new environmental products including several first-of-their-kind futures contracts in voluntary carbon offsets, renewable natural gas certificates and renewable energy credits. The new Nodal Exchange products further expand the world’s largest exchange listed suite of environmental products.
The new set of physically delivered environmental products, developed in collaboration with IncubEx, includes:
Verified Emission Reduction (VER) Futures & Options: Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) eligible and nature-based credits
Certified Emission Reduction (CER) Futures: Commitment Period 2; 2013+; and 2016+
Global Emission Reduction (GER)® Futures, developed by Net Zero Markets
Carbon Removal Futures
Renewable Natural Gas Certificate Futures
NEPOOL Quad Qualified Renewable Energy Certificate Class 1 Futures
Western Regional Energy Generation Information System (WREGIS) Registered Renewable Energy Certificates from Center for Resource Solutions (CRS) Listed Wind Energy Facilities front-half and back-half Futures
This new environmental product launch is part of EEX Group’s continued commitment to a sustainable future. Nodal Exchange and the European Energy Exchange (EEX) are collaborating with highly experienced industry partners to build their environmental and voluntary carbon offset offering. This includes expanding cooperation with IncubEx, a long-standing partner for developing exchange-traded products and services and client relationships in global environmental markets. In addition, Net Zero Markets, a spin-off from award winning carbon risk management firm Redshaw Advisers is collaborating with EEX Group to develop the GER product which Nodal listed today.
“The many environmental contacts that we have introduced since 2018 demonstrate our continued commitment to address climate change and innovation to meet participant needs in the marketplace’” said Paul Cusenza, Chairman & CEO of Nodal Exchange. “The new contracts further extend the broadest suite of exchange listed environmental products in the world and build on the carbon emission allowances, renewable energy certificates and renewable fuel credit futures and options available on Nodal. We are proud to be playing a role in efforts to improve our environment.”
“This latest set of products offer the design and innovations that market participants are demanding to meet their climate goals,” said Dan Scarbrough, President and COO of IncubEx. “We will continue to push first-of-their-kind products and look to improve others with the feedback from customers, Nodal Exchange and EEX. Together, we will continue to build and expand environmental markets for customers around the globe.”
Peter Reitz, EEX CEO, added: “We’re very excited to be launching these products on our US exchange, Nodal Exchange, today. Going to market with products for the voluntary carbon market is the next logical step for us in our sustainability roadmap. As an exchange market operator, we have a responsibility to our customers, and a duty of care to contribute to the transition to a cleaner, greener future.
Nodal Exchange is a derivatives exchange providing price, credit and liquidity risk management solutions to participants in the North American commodities markets. Nodal Exchange is a leader in innovation, having introduced the world’s largest set of electric power locational (nodal) futures contracts and the world’s largest set of environmental contracts. As part of EEX Group, a group of companies serving international commodity markets, Nodal Exchange currently offers over 1,000 contracts on hundreds of unique locations, providing the most effective basis risk management available to market participants. In addition, Nodal Exchange offers natural gas and environmental contracts. All Nodal Exchange contracts are cleared by Nodal Clear which is a CFTC registered derivatives clearing organization. Nodal Exchange is a designated contract market regulated by the CFTC.
ABOUT EEX GROUP
EEX Group builds secure, successful and sustainable commodity markets worldwide – together with its customers. The group offers trading in power, natural gas, environmental products, freight and agricultural markets as well as subsequent clearing and registry services, connecting a network of more than 800 trading participants. EEX Group consists of European Energy Exchange (EEX), EPEX SPOT, EEX Asia, Power Exchange Central Europe (PXE) and Nodal Exchange as well as the registry provider Grexel Systems and software companies KB Tech and Lacima. Clearing is provided by EEX Group’s clearing houses European Commodity Clearing (ECC) and Nodal Clear. EEX Group is based in 19 worldwide locations and is part of Deutsche Börse Group.
IncubEx is an incubator for exchange traded products, services, and technology solutions. At its core, IncubEx is a product and business development firm. The company works in conjunction with its global exchange partner, European Energy Exchange (EEX), Nodal Exchange and other leading service providers and stakeholders to design and develop new financial products in global environmental, reinsurance, and related commodity markets. The company has a specific focus on innovation and continuous improvement of products and services, including technology, trading solutions, and operational efficiencies. The IncubEx team is led by former key Climate Exchange executives and is uniquely positioned to capture these opportunities with its partners. The company was founded in 2016 and currently has offices in Chicago and London.
ABOUT NET ZERO MARKETS
Net Zero Markets is a company dedicated to developing risk management tools, products and contracts in the global environmental space. Its benchmark Global Emission Reduction product will deliver the level of transparency and commoditisation needed for the carbon markets to flourish, thereby allowing more finance to flow to the projects that are needed to achieve net zero targets.
The company is led by Louis Redshaw, one of the founding figures of the global Carbon Markets. In 2006, he created a standard for trading Certified Emission Reduction (CER) carbon offsets that was adopted by all major market participants and the carbon exchanges. This initiative allowed a secondary trading market in CERs to take-off thanks to the establishment of liquidity and price transparency.
Complementing Louis’s deep knowledge and understanding of carbon markets, the wider team has a wealth of experience innovating and growing markets, with an emphasis on carbon and energy trading and risk management.
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