CHICAGO, June 21, 2021 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced it will launch a Nature-Based Global Emissions Offset (N-GEO)™ futures contract on August 1, 2021, pending all relevant regulatory reviews. N-GEO futures will be the company's latest market-based solution to help create a more transparent and efficient voluntary emissions offset market.
"More companies are relying on nature-based offsets as part of their overall climate strategies as the move to net-zero emissions continues to accelerate," said Peter Keavey, Global Head of Energy at CME Group. "By offering a standardized mechanism for managing the price risk associated with those initiatives, our new N-GEO futures will provide the marketplace with an important tool to help navigate the ongoing energy transition."
N-GEO futures were jointly developed with Xpansiv market CBL, a leader in spot energy and environmental markets. Xpansiv launched the Nature-Based Global Emissions Offset (N-GEO) spot contract earlier this year, which is based on eligible voluntary offsets from Agriculture, Forestry, and Other Land Use (AFOLU) projects with additional Climate, Community, and Biodiversity (CCB) accreditation.
"Following the rapid market adoption of the GEO, we launched the N-GEO in response to rising demand for nature-based solutions," said Xpansiv President and COO John Melby. "It brings transparency and price certainty to a vital subset of the offset market, and N-GEO futures will further empower participants to meet climate commitments while promoting biodiversity and supporting developing communities."
A variety of solutions have emerged to help meet net-zero targets, including projects that protect or restore natural ecosystems, which remove greenhouse gases from the atmosphere. The purchase of nature-based voluntary offsets allows businesses to finance natural climate solutions while transitioning to more sustainable business practices.
The Nature-Based GEO futures will allow for delivery of eligible voluntary offset credits and will be listed by and subject to the rules of NYMEX. For more information and contract specifications, please visit www.cmegroup.com/n-geo.
As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB, and Traiana, Inc., respectively. Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners.
SOURCE CME Group