Carbon Offset exchanges are currently only available to wholesale participants, meaning companies who are actively engaged in buying carbon offsets in to retire them, trade in them as broker/dealers or for their own book and companies who are covered by mandatory emission schemes such as the EUA.
Active Carbon Credit Exchanges (Spot Market)
European Energy Exchange EEX (Germany)
The European Energy Exchange (EEX) is the leading exchange for European Carbon Allowances (EUA). It is part of the Deutsche Boerse Group. In addition to trading emission allowances, it offers contracts on Power, Natural Gas as well as Freight and Agricultural Products.
The EEX is the most liquid spot market for EUAs and is planning to launch a voluntary carbon emission market in 2022.
Source: (eex.com)
Website: https://www.eex.com/en/
Compliance Carbon Allowance Market: EU (EUAs)
Voluntary Carbon Offset Market: under development
CTX Global (UK)
CTX Global is in their own words the ‘The Leading Global Spot Trading Platform for Voluntary Carbon Credits’. CTX has been operational for nearly a decade and assisted companies, carbon offset project developers and traders to Buy and Sell carbon credits.
The exchange offers trading in voluntary carbon offsets under the Gold Standard, Verified Carbon Standard and United Nations CDM credits, including VERs, CERs, VCUs, EUAs and EUAAs.
Trading is available for companies with registration, KYC and after payment of an initial membership fee.
Source: (ctxglobal.com)
Website: ctxglobal.com
Compliance Carbon Allowance Market: n/a
Voluntary Carbon Offset Market: active
Xpansiv (USA)
Xpansiv was created in 2019 through the merger of two specialised energy and carbon offset exchanges CBL (founded 2009) and Xpansiv (founded 2016). The company is creating “the global marketplace for data-driven, ESG-inclusive products”. It offers a wide range of voluntary carbon markets through its CBL exchange. The CBL exchange is currently open for wholesale participants only.
Source: company website
Website: https://xpansiv.com/
Compliance Carbon Allowance Market: USA (various states)
Voluntary Carbon Offset Market: active
MexiCO2 (Mexico)
MEXICO2 is a subsidiary of the Mexican Stock Exchange (BMV). It was created in 2013 by SIF-ICP, a joint venture of the Mexican Stock Exchange (BMV) and ICAP. It provides carbon credits to the market that have been certified by internationally recognised methodologies and protocols, such as the UN Framework (CDM). In addition, it provides a market for Verified Carbon Standard (VCS), the Gold Standard (GS), Plan Vivo and California’s Climate Action Reserve (CAR) certificates.
Source: company website
Website: https://www.mexico2.com.mx
Compliance Carbon Allowance Market: n/a
Voluntary Carbon Offset Market: active
Global Carbon Credit Exchange gCCEx (Hong Kong)
Global Carbon Credit Trading Platform Limited, which operates gCCEx, provides an innovative and highly efficient electronic carbon credit exchange marketplace for the listing and trading of regulatory and verified carbon credits.
Source: company website
Website: https://www.globalccex.com/
Compliance Carbon Allowance Market: n/a
Voluntary Carbon Offset Market: active
Active Carbon Credit Exchanges (Futures market)
Intercontinental Exchange – ICE (USA)
The Intercontinental Exchange (ICE) is one of the largest global commodity and energy futures exchanges and also owns the New York Stock Exchange. It is also a financial technology and data provider. The ICE has operated environmental markets for almost two decades. In 2022, they announced the trading of a Nature-Based Solutions carbon credit futures contract (“NBS future”). The NBS future ‘physically delivers Verified Carbon Unit (VCU) credits certified under Verra’s Verified Carbon Standard (VCS) Agriculture, Forestry and Other Land Use (AFOLU) Projects with Climate, Community and Biodiversity (CCB) Certification, with vintages between January 1, 2016, to December 31, 2020.’ according to the exchange.
The exchange operates the most liquid market in EUA futures.
Source: (theice.com)
Website: https://www.theice.com
Compliance Carbon Allowance Market: EU (EUAs) futures, USA (various states) futures
Voluntary Carbon Offset Market: NBS futures
Chicago Mercantile Exchange – CME (USA) – active
The CME is the world’s largest derivatives exchange with a long history in trading agricultural, metal and energy futures. The exchange has launched the CBL Global Emissions Offset (GEO) futures contract, which is based on a set of standardised and validated instruments in up and coming the voluntary emissions market. Deliveries are facilitated through CBL Exchange which is part of Xpansiv (see above).
Source: (cmegroup.com)
Compliance Carbon Allowance Market: n/a
Voluntary Carbon Offset Market: GEO, N-GEO, C-GEO futures
NASDAQ OMX Commodities Europe (DK)
NASDAQ OMX Commodities Europe is a subsidiary of the US Exchange NASDAQ. It provides a marketplace for financial trading in electrical power, and emission allowances and emission credits with a focus on the European Union and Nordic markets. Nasdaq has a partnership with Finnish puro.earth a matching-platform and primary market for voluntary carbon offsets. The Exchange has also launched an Index family based on puro.earth’s carbon removal certificates (CORCs).
Source: (nasdaq.com)
Compliance Carbon Allowance Market: EU (EUAs) futures
Voluntary Carbon Offset Market: n/a
Announced Carbon Credit Exchanges
London Stock Exchange (UK)
The LSE is in the process of creating a new stock exchange for carbon credits. ” We anticipate that corporates and investors with long-term commitments for carbon credits will be key investors who use the outputs of these vehicles to meet part of their needs.”
Corporates and investors will be able to invest in these funds to help fund climate change projects. Institutional investors will be able to invest in these funds without fear of losing money because of the government’s guarantee.
Source: (londonstockexchange.com)
Website: londonstockexchange.com
Compliance Carbon Allowance Market: n/a
Voluntary Carbon Offset Market: n/a
ADGM – Carbon Trading Exchange (Abu Dhabi)
ADGM, the international financial centre in Abu Dhabi, formed the first fully regulated voluntary climate change mitigation exchange and clearing house. The exchange will be called “Air Carbon Exchange” and will be regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Markets Company (ADGM).
Source: (shearman.com)
Website: n/a
Compliance Carbon Allowance Market: n/a
Voluntary Carbon Offset Market: n/a
Australian Carbon Exchange (Australia)
Announced in May 2022, the Australian carbon exchange will be developed over a three-year project timeline. It will operate like a web-based stock exchange allowing for the purchase, clearing and settlement of Australian carbon credit units (ACCUs). In addition, potentially, other types of carbon credits and offset markets might be offered.
Source: (cleanenergyregulator.gov.au)
Website: n/a
Compliance Carbon Allowance Market: n/a
Voluntary Carbon Offset Market: n/a
Climate Impact X (Singapore) – about to launch
Climate Impact X (CIX) is a global exchange for quality voluntary carbon offsets. The company was created by an alliance of DBS Bank, Singapore Exchange, Standard Chartered and Temasek. The exchange offers trading in selected carbon offsets verified by globally accepted registries and ratified by an International Advisory Council (IAC).
Source: company website
Website: climateimpactx.com
Compliance Carbon Allowance Market: n/a
Voluntary Carbon Offset Market: n/a
Carbonplace (UK) – about to launch
Carbonplace is an exchange which is being developed by a consortium of eight of the world’s largest financial institutions. It is working on a DLT based solution which would allow ‘simple, transparent, and secure transfers of certified carbon credits.’ It is being dubbed the ‘Swift for the carbon markets’.
Source: (finextra.com), company website
Website: https://carbonplace.com/
Compliance Carbon Allowance Market: n/a
Voluntary Carbon Offset Market: n/a
Blockchain-based Carbon Credit Exchanges
Recently, the process of securitising voluntary carbon offset allowances via blockchain tokens has become popular. While this is not undisputed by the registrars and certification agencies because it increases the risks in double-spending of the credits, it has gained in popularity.
In addition, risks of low-quality projects that do not actually improve the environment, to leak into tokenised credits, is quite high. Reason for that is the wild-west mentality in the public blockchain space, where anyone can participate without formal oversight or control.
A clear advantage, however, is that such tokenised carbon credits are available for retail clients to purchase for speculative purposes. And in this sense, turbocharge the adoption, as blockchain proponents argue.
Aircarbon Exchange (Singapore)
The Aircarbon Exchange ACX uses blockchain technology to securitise voluntary carbon offset credits. It issues tokens, of which each token is backed by a 1 tCO2e carbon credit that sits in the Exchange’s Trust.
The exchange is planning to launch futures trading in 2022 through a partnership with Deutsche Boerse AG.
Source: (bloomberg.com), company website
Website: https://www.aircarbon.co/
Compliance Carbon Allowance Market: n/a
Voluntary Carbon Offset Market: active
Toucan (Germany)
The Toucan infrastructure enables the tokenisation of carbon credits. Via the Toucan Bridge, participants can tokenise Carbon credits in the Verra registry. In order to do this, a user needs a Verra retirement account or a partner who can retire the credits, specifying that they are destined for the Toucan Bridge. Toucan itself is not an exchange. The Tokens exist on the Polygon Blockchain and can be traded on decentralised exchanges.
However, Verra has recently put a stop to this practise, since the retirement of credits is supposed to be to the consumption of the carbon offset, not storage in a token. The organisation is currently exploring how credits can be ‘immobilised’ so that they can be compatible with blockchain tokenisation.
Already tokenised credits, however, can still be traded on decentralised exchanges.
Sources: (verra.org), (time.com)
Website: https://toucan.earth/
Compliance Carbon Allowance Market: n/a
Voluntary Carbon Offset Market: active
