Xpansiv, a prominent player in market infrastructure for the global energy transition, has introduced 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 launch represents a pivotal advancement in bolstering the transparency and accessibility of the voluntary carbon market (VCM). The inaugural day of trading witnessed the active involvement of key players 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 exchanged through the new CCP GEO contracts, highlighting robust interest from participants across the global market.
The trades encompassed 10,000 tons of ACR, 15,606 tons of CAR, and 12,000 tons of VCS credits, transacted via their respective CBL CCP Global Emissions Offset™ (GEO®) registry-specific contracts. Furthermore, there were 73,778 tons of bids and offers for the new contracts posted during the trading session. The promotion of High-Integrity Carbon Credits is a key focus of CCP-labelled carbon credits, which are issued under programs and methodologies subject to independent assessment through the ICVCM’s stringent process. This verification ensures adherence to high-integrity standards encompassing additionality, precise quantification of emission reductions and removals, permanence, and positive social and environmental impacts.
The introduction of these standardized contracts on the Xpansiv platform aims to facilitate transparent price discovery and streamlined market access for buyers and sellers of ICVCM CCP-approved credits. Industry leaders have voiced strong support for this initiative. Adam Raphaely, Managing Director of Mercuria Energy America, emphasized the significance of the launch, stating, “The introduction of Xpansiv CBL’s standardized contracts is a crucial step towards providing transparent price discovery and streamlined market access for buyers and sellers of ICVCM CCP-approved credits.” Alex Bryson, Head of Green and Carbon at ElectroRoute, highlighted the positive impact of standardization efforts on the market and expressed enthusiasm about early participation.
Experts view the launch of these standardized contracts as a pivotal move in enabling market participants to distinguish high-quality carbon credits within the VCM. The market response and future outlook have been promising, with the new registry-specific GEO® standardized contracts from Xpansiv enabling buyers to receive CCP-approved credits from the American Carbon Registry (ACR), Climate Action Reserve (CAR), and Verra registries. These contracts are settled daily based on 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 appreciation for the active participation of key market stakeholders and underscored the importance of high-integrity CCPs in revitalizing the VCM. The ICVCM established its Core Carbon Principles to set a benchmark for high-integrity project credits, with the initial set of seven qualifying CCP methodologies announced in June and more methodologies anticipated to receive approval in the near future.
Corresponding credits will be immediately deliverable into the respective CCP GEO contract once labeled as CCP eligible in their designated registry. As new programs gain approval, additional CCP contracts will be introduced, expanding the range of credits available for trading. The market’s response to the new contracts has been positive, characterized by significant trading activity and keen interest from market participants. The standardized contracts are poised to play a pivotal role in advancing the VCM by providing a transparent and efficient mechanism for trading high-quality carbon credits.
This initiative is widely regarded as a significant stride in safeguarding the integrity and efficacy of carbon offset projects.
