CME Group's Voluntary Carbon Emissions Offset Contracts Surpass 100 Million Offsets Traded

Rhea-AI Summary

CME Group announced that its combined volume for voluntary carbon emissions offset contracts has exceeded 100,000 contracts, translating to 100 million carbon offset credits. This milestone marks a significant advancement in the carbon market, enhancing transparency and liquidity for achieving global environmental goals. The total open interest has reached a record of over 20,763 contracts, with significant trading activity driven by over 75 firms globally. The growth in this market reflects increased adoption of environmental risk management tools since the launch of relevant futures contracts.

Positive

• Surpassed 100,000 contracts in voluntary carbon emissions offsets, worth 100 million metric tons of CO2 equivalent.
• Record open interest of 20,763 contracts as of March 29, 2022, representing over 20 million deliverable carbon offset credits.
• Average daily volume reached 1,000 contracts in March 2022, indicating strong market activity.
• Over 75 firms or brokers have engaged in trading these products, showcasing robust market participation.

Negative

• None.

CHICAGO, April 27, 2022 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that combined volume across CME Group's voluntary carbon emissions offset contracts has surpassed 100,000 contracts traded, equivalent to 100 million carbon offset credits, or 100 million metric tons of CO2 equivalent.

"CME Group continues to play a critical role in the development of the carbon sector through our suite of voluntary carbon emissions offset products," said Peter Keavey, Global Head of Energy and Environmental Products at CME Group. "This milestone of 100 million offsets traded is an exciting step in the path towards net zero, creating more transparency and liquidity that will be key to advancing strategies and meeting global environmental targets."

Market users have quickly adopted these risk management tools since the initial launch of Global Emissions Offset (GEO) futures and Nature-Based Global Emissions Offset (N-GEO) futures last year. Key highlights of how these markets have grown include:

• Combined open interest reached a record 20,763 contracts on March 29, 2022, representing over 20 million deliverable carbon offset credits, with open interest extending out to December 2024.
• Record average daily volume in March 2022 of a combined 1,000 contracts.
• Since launch, CME Group has had multiple clearing firms help facilitate ten successful deliveries, totaling over 8.8 million offsets, or 8.8 million metric tons of CO2 equivalent.
• Over 75 firms or brokers have executed trades in these products.
• Nearly half of total volume has come from Europe and the Middle East, followed by North America and Asia. 

GEO, N-GEO and C-GEO futures are listed by and subject to the rules of NYMEX. For more information, please visit: www.cmegroup.com/c-geo. 

About CME Group
As the world's leading 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. 

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 and EBS are trademarks of BrokerTec Europe LTD and EBS Group LTD, 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.

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SOURCE CME Group

FAQ

What milestone did CME Group achieve in carbon emissions offset contracts on April 27, 2022?

CME Group surpassed 100,000 contracts traded in voluntary carbon emissions offsets, equivalent to 100 million carbon offset credits.

How many contracts of open interest were recorded by CME Group in March 2022?

CME Group recorded an open interest of over 20,763 contracts on March 29, 2022.

What is the significance of CME Group's carbon emissions offset contracts for investors?

The growth in carbon emissions offset contracts enhances market transparency and liquidity, which is crucial for investors looking to manage environmental risks.

How many firms are actively trading CME Group's carbon products?

Over 75 firms or brokers have executed trades in CME Group's carbon emissions offset products.

What regions contribute significantly to CME Group's carbon emissions trading volume?

Nearly half of the total volume has come from Europe and the Middle East, followed by North America and Asia.