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EEX Group outlines roadmap for entry into Voluntary Carbon Market

By entering the Voluntary Carbon Market (VCM) EEX Group continues its commitment to a sustainable future. The group’s product suite addresses the increasing demand from corporates that seek to offset or neutralise their carbon footprint.

EEX Group intends to bring enhanced levels of standardisation, transparency, and security to the VCM by leveraging its considerable experience in global carbon markets.

“While companies first-and-foremost need to reduce their own emissions, carbon offsets are a legitimate tool, especially for hard-to-abate emissions,” said Peter Reitz the CEO of EEX adding that in this context, robust, trustworthy, and secure Voluntary Carbon Markets are instrumental to generate financial investments which are critically needed for a net-zero future.

“The VCM launch is the next logical step for us in our sustainability roadmap, as we have a responsibility to our customers, and a duty of care as an exchange market operator to contribute to the transition to a cleaner, greener future,” underlined Mr Reitz.

The Voluntary Carbon Market allows carbon emitters to offset their emissions by purchasing carbon credits generated by projects targeted at removing, or reducing carbon emissions. The EEX Group VCM contract suite will cover four different products, aimed at striking a balance between standardisation, on the one hand, and catering to different customer preferences, on the other.

Each of the contracts focuses on specific aspects. Verified Emission Reduction (VER), CORSIA-eligible is aligned with the eligibility rules of the global Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), governed by the International Civil Aviation Organization.

Verified Emission Reduction (VER) – Nature-based focuses on carbon credits from nature-based solutions; separate vintage contracts allow to differentiate carbon credits by year of occurrence of CO2 reduction.

Carbon Removal represents the first-of-its-kind exchange-listed contract designed to focus on removal and sequestration activities, while Global Emission Reduction (GER) is aimed to represent the entire VCM in one product, with a basket approach and gradual pathway to net-zero.

The launch of the EEX VCM product suite is scheduled for the 17th of June 2022, with products being listed initially in North America at Nodal Exchange and then followed by EEX in Europe in the second half of 2022. Through this global listing approach, the VCM products will be made accessible across multiple time zones, reflecting the global nature of the products.

“It is critical for the planet that we reduce carbon emissions and it is laudable that so many companies are seeking to contribute to the reduction effort by participating in Voluntary Carbon Markets,” said Paul Cusenza the CEO of the Nodal Exchange. “The EEX Group is very well positioned to become a key player in VCM on a global scale, and Nodal Exchange is ready to play an active role by entering this exciting and dynamic market.”

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