CBL Markets Launches Global Emissions Offset, a Tradeable Product and Carbon Benchmark
NEW YORK & SAN FRANCISCO & SYDNEY , August 27, 2020 (Newswire.com) - XCHG, the global marketplace for Intelligent Commodities™, today announced the launch of an innovative new product called the Global Emissions Offset (GEO), tradeable on XCHG subsidiary CBL Markets.
The GEO is based on parameters defined by the International Civil Aviation Organization for CORSIA — the Carbon Offsetting and Reduction Scheme for International Aviation. The GEO enables the market to effectively set a price on carbon based on real-time transactions of carefully vetted offset projects.
In the past, corporations were forced to conduct laborious, time-consuming research to ensure the offsets they purchased were valid and accountable. The GEO provides assurance that each project meets or exceeds international best practices, saving time, increasing liquidity, and providing price transparency to help companies meet their goals.
The product also represents a true global benchmark — a reliable price for carbon backed by projects that are proven to contribute to reducing emissions. Buyers can trust that all offset products above this benchmark will result in measurable results, offering a reliable path to compliance as the world works toward a net-zero future.
“The GEO enables the market to provide a standardized reference price for carbon,” said Ben Stuart, XCHG Chief Commercial Officer. “It results in a clear pricing signal backed by projects that are impacted by supply and demand and the real costs of abating emissions.”
CBL developed the GEO with input from key market stakeholders, including financial institutions, trading firms, project developers, NGOs, carbon standards, industry associations, and corporations. The CORSIA-approved assets underpinning the GEO eliminate much of the cost of trading offsets, because buyers can trust that they’re purchasing offsets with proven provenance.
“Researching every offset project is costly and inefficient,” said John Melby, XCHG President and Chief Operating Officer. “The GEO unlocks liquidity that makes it easier for project developers to finance their products, and drives toward a benchmark price for carbon, by which other offset projects can be priced.”
As vital ESG factors continue to be factored into global trade, CBL expects that energy products will be priced based on carbon intensity. “We see the GEO as a major step toward making that a reality,” Melby said.
XCHG reports the GEO will begin trading in September. The arrival of this benchmark product follows the launch of the XSignals platform, which translates ESG spot market price data into high-quality reference products, enabling markets to accurately price ESG factors.
Xpansiv CBL Holding Group (XCHG) is the world’s first commodity marketplace built for a data-rich, resource-constrained world. We bring transparency to global markets through innovative, ESG-inclusive commodity products, and price information. XCHG.net
About CBL Markets
XCHG company CBL provides access to the world’s energy and environmental commodity markets, facilitating the secure and seamless trading of commodities like carbon, renewable energy, water, and gas. cblmarkets.com
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Source: CBL Markets