Nature-Based Global Emissions Offset (N-GEO) Futures Available in CME Group

CME Group, the world's leading and most diverse derivatives marketplace, today announced that it has launched Nature-Based Global Emissions Offset (N-GEO) futures, following a notice published in June.

According to the company, 1,315 total contracts have traded since launching on August 1, equivalent to over 1.3 million environmental offsets, with participation from 10 firms, including Andurand Capital Management, Hartree Partners, Macquarie Group and Vitol.

N-GEO futures were jointly developed with Xpansiv market CBL, a leader in spot energy and environmental markets. N-GEO futures are based on eligible voluntary offsets from Agriculture, Forestry, and Other Land Use (AFOLU) projects with additional Climate, Community, and Biodiversity (CCB) accreditation, while GEO futures are based on the CORSIA framework.

"N-GEO futures are the latest product we have launched to provide our global clients with a standardized tool for managing the price risks associated with reducing emissions," said Peter Keavey, Global Head of Energy at CME Group. "We are pleased to see early adoption of these new contracts, which will join our GEO futures in helping bring more transparency and efficiency to the voluntary carbon offset market and make it easier for companies and countries to meet their carbon reduction targets."

Last week, CME Group posted its financial results for the second quarter of 2021​, reporting a revenue of $1.2 billion, and an operating income of $675 million in Q2 this year.