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.
CME-G
View original
content:http://www.prnewswire.com/news-releases/cme-group-to-launch-nature-based-global-emissions-offset-futures-on-august-1-301315867.html
SOURCE CME Group