Voluntary Carbon Emissions Offset Contracts at CME Group Trade More Than 100 Million Offsets

Published on: 26 April 2022
CME-news

Volume across CME Group's carbon emissions offset contracts has surpassed 100,000 contracts traded. This is equivalent to 100 million carbon offset credits, or 100 million metric tons of CO2 equivalent. Nearly half of total volume has come from Europe and the Middle East, followed by North America and Asia. CME Group's exchanges offer the widest range of global benchmark products across all major asset classes.

The largest derivatives market in the world, CME Group, revealed today that it had traded more than 100,000 contracts total, or 100 million carbon offset credits, or 100 million metric tonnes of CO2 equivalent, in its voluntary carbon emissions offset contracts.

"CME Group continues to play a critical role in the development of the carbon sector through our suite of voluntary carbon emissions offset products,"

said Peter Keavey, Global Head of Energy and Environmental Products at CME Group.

"This milestone of 100 million offsets traded is an exciting step in the path towards net zero, creating more transparency and liquidity that will be key to advancing strategies and meeting global environmental targets."

Since the original release of CBL Global Emissions Offset (GEO) futures and CBL Nature-Based Global Emissions Offset (N-GEO) futures last year, market participants have quickly adapted to these risk management instruments. Important examples of how these marketplaces have expanded include:

On March 29, 2022, the total open interest for all contracts hit a record 20,763 contracts, or more than 20 million deliverable carbon offset credits, with open interest extending out to December 2024.

Record daily average volume of 1,000 contracts in March 2022.

Since its start, the CME Group has assisted ten successful deliveries, totaling more than 8.8 million offsets, or 8.8 million metric tonnes of CO2 equivalent, with the assistance of several clearing businesses.

Trades in these products have been carried out by over 75 companies or brokers.

Europe and the Middle East have contributed about half of the entire volume, followed by North America and Asia.

The GEO, N-GEO, and C-GEO futures are listed on the NYMEX and are governed by its rules. Please visit www.cmegroup.com/c-geo for additional details.

The CME Group (www.cmegroup.com), the largest derivatives marketplace in the world, offers clients the ability to trade futures, options, cash, and OTC markets, optimise portfolios, and analyse data, enabling market players all over the world to effectively manage risk and seize opportunities. The largest selection of global benchmark products is offered by CME Group exchanges across all significant asset classes based on interest rates, equities indices, foreign currency, energy, agricultural products, and metals. The business provides trading in futures and options on futures through the CME Globex® platform, trading in fixed income through BrokerTec, and trading in foreign exchange through the EBS platform. Additionally, it runs CME Clearing, one of the top central counterparty clearing companies in the world.

Chicago Mercantile Exchange Inc. is the owner of the trademarks CME Group, the Globe logo, CME, Globex, and E-mini. Board of Trade of the City of Chicago, Inc.'s trademarks include CBOT and Chicago Board of Trade. The New York Mercantile Exchange, Inc.'s trademarks include NYMEX, New York Mercantile Exchange, and ClearPort. The trademark COMEX belongs to Commodity Exchange, Inc. Trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively, include BrokerTec and EBS. Chicago Mercantile Exchange Inc. has granted Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC, and S&P/Dow Jones Indices LLC a licence to use their respective services and/or trademarks, Dow Jones, Dow Jones Industrial Average, S&P 500, and S&P, respectively. The owners of any other trademarks are their respective properties.

Source: CME group news

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