Two Environmental Contracts Have First-Ever Trades in June on Nodal Exchange

Jul 1, 2022 | Blog

We are pleased to share that June saw the first-ever trades for two contracts listed only on Nodal Exchange. These trades coincide with the further expansion of Nodal’s largest suite of environmental futures in the world, also last month, with the addition of almost a dozen new contracts spanning voluntary carbon, renewable natural gas, and renewable energy credits.

Included in the product launch on June 17th was both futures and options for Nature-Based Verified Emission Reduction (VER) Carbon Offsets with vintages specified. The first trade, which occurred on launch day, was for 10 Vintage 2016+, December-22 futures (representing 10,000 mt) and priced at $9.40.

These VER nature-based contracts are unique in that the vintage of futures defines the oldest vintage that may be delivered, allowing for traders to manage inventory, price future reductions more precisely, and trade calendar spreads on the same underlying vintages. Since the launch, a total of 20 lots have traded.

On June 29th, California PCC 3 RECs were the second product to trade for the first-time last month. That day 200 lots traded across the following vintages:

  • 100 lots of V22 March-23 Futures traded at $5.85
  • 50 lots of V23 March-24 Futures traded at $6.25
  • 50 lots of V24 March-25 Futures traded at $6.50

In total, June saw 300 lots of California PCC 3 RECs trade on Nodal.

IncubEx and Nodal Exchange continue to watch these developing markets and monitor opportunities to further expand the environmental markets in North America.

The IncubEx team is available to speak with you if you are interested in these growing and dynamic markets.

Please feel free to reach out to connect at your convenience.