Xpansiv market CBL SD-GEO

Xpansiv Market CBL presents a new SD-GEO clearing contract

Xpansiv Market CBL has launched a new benchmark carbon offset contract called Sustainable Development Global Emissions Offset Contract (SD-GEO).

Xpansiv is a market infrastructure and data platform for environmental commodities. One of the company’s main business units is CBL, the largest spot exchange for ESG products such as carbon, renewable energy certificates and digital natural gas.

The new standardized clearing contract called SD-GEO is trading on the Xpansiv CBL market. Its announcement comes after Xpansiv APX, a leading provider of ledgers and ledgers for environmental markets, launched ESGclear.

The Xpansiv CBL SD-GEO

Prior to CBL SD-GEO, there were two other contracts as part of the market’s GEO product line:

  • the CBL Nature-Based Global Emissions Offset (N-GEO), and
  • CBL Core Global Emissions Offset (C-GEO) contracts.

All of these offset contracts are based on the Voluntary Carbon Offset Market (VCM). Carbon offsets are carbon credits in the VCM.

The GEO product suite was launched by the Chicago Mercantile Exchange (CME Group), the world’s largest derivatives market. Their creation is a response to the growing demand for carbon offset products in the carbon space.

  • And now, Xpansiv market CBL introduces its newest product under its GEO series: SD-GEO.

CBL SD-GEO offers a reference for market participants to negotiate high quality carbon offsets from projects that also promise to have a social impact.

The new contract is critical to liquidity and price discovery in the emerging home appliance market. As such, it helps simplify the selection process for those who wish to purchase high-quality offsets with assured integrity and validation.

In particular, CBL SD-GEO will enable the delivery of cookstove projects that achieve at least five United Nations Sustainable Development Goals (SDGs), either from Verra or Gold Standard. This ensures that CBL SD-GEO credits have substantial co-benefits in addition to reduced carbon emissions.

These projects must follow the standard Xpansiv CBL instrument program which consists of Global Emissions Offsetting (GEO). This is the first of the standardized compensation contracts established by Xpansiv.

Cookstove projects focus on producing positive impacts on local communities and often touch on the following SDGs:

  • No poverty (SDG 1)
  • Good health and well-being (SDG 3)
  • Gender equality (SDG 5)
  • Affordable and clean energy (SDG 7)
  • Responsible consumption and production (SDG 12)
  • Climate action (SDG 13)

Russell Karas, Carbon Market Development Manager at Xpansiv, noted that:

“Companies are often looking for offset projects that mitigate emissions while having co-benefits for local communities, projects like clean cookstoves… This emerging segment of the carbon market will grow exponentially in the years to come, and Xpansiv offers a better way to price and trade. these high quality credits.

The concept of co-benefits

Co-benefits refer to the additional results of carbon projects that benefit society at large. They include benefits that go beyond the direct impact of climate change mitigation.

  • Co-benefits are often identified under the three pillars of sustainability – social, environmental and economic.

Common examples of co-benefits are cleaner air, local job creation, improved public health, and biodiversity promotion.

The concept of co-benefits is not new to CBL’s standardized netting contracts. According to Xpansiv Commercial Director Ben Stuart, CBL N-GEO is also applying for Climate, Community and Biodiversity accreditation from Verra. He also added that:

“The SD-GEO is the next contract in the GEO series that will bring transparency, price certainty and a streamlined selection process to a vital subset of the clearing market – another important step towards a carbon neutral future. .”

Among the different types of offset projects, clean stoves are one of them that have an impact on sustainable development. It is part of low-cost environmental and community energy efficiency projects.

Clean cookstoves allow households to switch to an efficient cooking solution. They are much more efficient than traditional mud/rock stoves. In addition, they also reduce the use of firewood as fuel, thus avoiding CO2 emissions.

In particular, for a carbon project developer C-Quest Capital (CQC), their clean cookstove projects can achieve around 9-11 SDGs. They bring permanent and verifiable improvements to poor rural communities.

The Commercial Director of CQC remarked that:

“As one of the leading developers of clean cookstove projects, we welcome Xpansiv’s initiative, setting a baseline impact benchmark for this type of project and establishing a robust market that will support the future of clean stove projects. clean homes…”

While for other Xpansiv investors, the introduction of CBL SD-GEO is a pivotal moment that simplifies the race to net zero. Entities will now have transparent and direct access to high quality carbon credits with co-benefits.

Market Xpansiv CBL said SD-GEO will start trading on December 5.

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