Net Zero Markets to Launch Global Carbon Reduction Contract with EEX and ACX

LONDON, LEIPZIG, Germany and SINGAPORE, January 11, 2022 / PRNewswire / – Net Zero Markets, a company dedicated to developing risk management, trading and investment products in the global environmental markets space, has signed agreements with the European Energy Exchange (EEX) and AirCarbon Exchange (ACX) to list Global Emission Reduction (GER) ®, Net Zero Market’s flagship contract – an innovative approach to solving the problems of the voluntary carbon market (VCM).[1] The agreements with EEX – a leading exchange for carbon compliance programs around the world – and ACX – a pioneer in the VCM space, headquartered at Singapore – make GER accessible in several time zones to global participants in the voluntary carbon market (VCM).

Thanks to the innovative design of the product, it will be able to be used by compensators, compensatory product retailers, project developers, investors and the wider trading community. Net Zero Markets believes that widespread availability and use is essential to enable the increased liquidity needed to scale the VCM, ultimately supporting the Net Zero goals.

The GER is built on the basis of existing standards with appropriate overlays and innovative features that align with a path to Net Zero. The company expects the GER to gradually be listed on the stock exchange and start trading in early 2022.

Louis redshaw, CEO of Net Zero Markets: “We are delighted to be working with EEX and AirCarbon on the launch of GER. We have developed this product in collaboration with industry participants and believe that its unique and innovative design will achieve the key objectives of promoting liquidity and transparency to ensure funding flows to the projects necessary to achieve Net Zero.

While well-meaning companies have bought and pulled off carbon offsets to play their part in making Net Zero happen, many others are either confused and put off by the complexity of the market, or have later found out that their offsets are unsuccessful. not as effective as they are. had been led to believe.

This has created a dynamic in which companies and other offsets must become experts in carbon markets to be able to do the right thing. Net Zero Markets strongly believes that this is the main reason why the VCM has not reached its full potential. Consumers shouldn’t have to be experts. If effective clearing and removal is to occur on a large scale, buyers need to have confidence and the products need to be straightforward and priced transparently. PRE is designed to deliver all of these things in accordance with the recommendations of the Voluntary Carbon Market Scaling Task Force.[2] It’s the perfect antidote to further market fragmentation. “

Guillaume Pazos, Managing Director of AirCarbon Exchange: “We are extremely excited to be working with the industry leading team at Net Zero Markets. Their extensive experience in commercializing emissions markets, coupled with our leadership position in providing commodity infrastructure to carbon markets, was instrumental in formulating the GER.

The process of creating the underlying GER spot architecture on ACX was developed over a full year. We are now ready to offer the market a simple and elegant solution to the current pursuit of a basic carbon contract. While many try to legislate on a basic contract, GER creates it by offering a comprehensive solution in a single contract. “

Tobias Paulun, Director of Strategy for the European Energy Exchange: “The voluntary carbon market can play a strategic role in achieving the Paris Agreement, in addition to mandatory carbon pricing mechanisms. I am convinced that GER represents the innovation that is needed and expected in voluntary carbon markets.

GER should be offered alongside our existing products for carbon compliance markets in Europe to EEX but also to North America to Nodal Exchange, making them accessible to our global business community.

An integrated offering for the carbon markets, with both Spot and Futures instruments available, is essential to bring the necessary liquidity to the market and increase the VCM. We are delighted to build this new market, with our partners NZM and ACX, but also with our customers. “

[1] Patent pending

[2] The TSVCM is now known as the Integrity Council for Voluntary Carbon Markets (ICVCM)

Note to editors: NZM and its partner exchanges will publish more details on GER and how it works on exchanges in the coming months.

For more information, please contact Net Zero Markets at [email protected] or visit https://www.netzeromarkets.co.

About Net Zero Markets:

Net Zero Markets is a company dedicated to the development of risk management tools, products and contracts in the global environmental space.

The company’s first products are expected to launch in early 2022. These products will provide the level of transparency and commodification necessary for the development of carbon markets, thereby allowing more funding to flow to the projects needed to meet the net targets. zero.

Together, the team has over 90 years of experience in the carbon and energy markets. The CEO of the company, Louis redshaw, is one of the founding figures of Global Carbon Markets. In 2006, he created a standard for the trading of Certified Emission Reduction (CER) carbon credits that has been adopted by all major market players and carbon exchanges. This initiative enabled a secondary market for CERs to take off thanks to the establishment of liquidity and price transparency.

Louis has fought hard to protect the integrity of carbon markets, including educating peer financial firms and various authorities, including the European Commission, the UK Treasury, the Financial Conduct Authority (FCA) and HM Revenue and Customs ( HMRC) on VAT fraud. Louis most recently served as an expert witness in the Crown Prosecution Service’s criminal proceedings against fraudsters operating in voluntary carbon markets, and in two civil cases relating to VAT fraud. Louis was a director on the boards of: the International Emissions Trading Association (IETA), the Climate Markets and Investors Association (CMIA) and Tricorona, on 3e largest developer of carbon projects.

Louis currently runs Redshaw Advisors Ltd, which was recently voted Best Offsets Retailer and Best Trading Company of 2021 (Voluntary Carbon Markets) by readers of Environmental Finance magazine, the industry’s leading publication covering sustainable investing and green finance. .

Louis is a strong supporter of emissions trading and has dedicated his career to promoting the efficiency of carbon markets to achieve not only carbon emissions reductions, but removals as well. Complementing Louis’ in-depth knowledge and understanding of carbon markets, the founding team of Net Zero Markets has extensive experience in trade, structuring and law in product growth in the industry.

For more information, please contact Net Zero Markets at [email protected] or visit https://www.netzeromarkets.co.

About the EEX group

EEX Group builds safe, prosperous and sustainable commodity markets around the world, together with its customers. The group offers the trading of electricity, natural gas, environmental products, freight and agricultural products as well as subsequent clearing and registration services, connecting a network of more than 800 business participants.

The EEX group includes European Energy Exchange (EEX), EPEX SPOT, EEX Asia, Power Exchange Central Europe (PXE) and Nodal Exchange, as well as registry provider Grexel Systems and software companies KB Tech and Lacima. Clearing is provided by the clearing houses of the EEX European Commodity Clearing (ECC) and Nodal Clear group. The EEX group is based in 19 locations around the world and is part of the Deutsche Börse group.

EEX Group is a leading trading group for environmental markets operating emissions trading based on the European Emissions Trading System (EU ETS) since 2005 and offering primary auctions in the EU ETS, on behalf of 25 EU Member States. In North America, Nodal Exchange, part of the EEX group, provides the largest portfolio of environmental products, among others, based on cap-and-trade systems of California and the Regional Greenhouse Gas Initiative (RGGI). In addition, EEX and New Zealand Exchange (NZX) hold emissions auctions for the New Zealand Emissions Trading System. More information on: https://www.eex-group.com/fr/

About AirCarbon Exchange

AirCarbon Exchange (“ACX”) is a global exchange that is revolutionizing the voluntary carbon market. The Exchange’s clientele includes legal entities, financial traders, carbon project developers and other industry stakeholders. ACX provides its clients with an efficient and transparent trading platform that is easy to use, frictionless and with the lowest commission fees available on the market. Its underlying technology will allow the carbon market to grow effectively to meet Net Zero’s global ambitions.

Launched in 2019, the Exchange is a hybrid platform with a traditional central order book architecture that will be familiar to all seasoned traders. The exchange also uses the speed and efficiency of the blockchain to achieve the execution, clearing and settlement of atomic T-0 transactions. The stock exchange’s basic matching engine can currently match trades in the order of ~ 10,000 per second.

From May 2021, ACX is the first negative carbon exchange in the world, having offset its carbon emissions 12 months in the future (for May 2022) through the Onil Stoves Guatemala Uspantan project. ACX is committed to continuing to offset all of its emissions over 12 months.

For more information or to trade carbon, please contact [email protected] or visit https://www.aircarbon.co.

SOURCE AirCarbon Exchange; EEX; Net zero markets

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