Washington Carbon Allowance Market Posts Record Volumes and First Options Trade on Nodal Exchange

Apr 18, 2023 | Press Release


Nodal Exchange and IncubEx are pleased to announce a record volume day and week in the Washington Carbon Allowance (WCA) market as well as the first WCA options trade.

Nodal posted a record daily volume of 565 lots (equal to 565,000 WCAs) on April 13th and 815 WCA lots for the week representing 815,000 metric tons of greenhouse-gas emissions. Last week also marked a key milestone, as IVG Energy Ltd, a leading brokerage of environmental commodities and markets, brokered the first-ever WCA option trade on Nodal. The option trade was executed on WCA December-2023 $50.00 puts.

In collaboration with IncubEx, Nodal was the first to list WCA futures and WCA options contracts, which correspond with the Washington “Cap-and-Invest” program, the newest carbon market in North America. The program, launched on January 1, 2023, will gradually cover about 75% of the state’s CO2 emissions.

“We are thrilled to be the first to broker an options trade in the WCA market,” said Scott Cunningham, Environmental Broker at IVG Energy. “This is a major step forward for the industry and our firm and will help drive more investment into sustainable products and projects. As the environmental markets continue to grow and evolve, we are committed to providing innovative solutions that meet the needs of our customers. The trade also highlights IVG’s evolving position as a leader in the environmental markets, providing its customers with innovative solutions and opportunities to achieve their sustainability goals.”

“The first WCA options trade marks a key milestone in the development of the Washington carbon market and we thank IVG for brokering this transaction,” said Dan Scarbrough, President and COO at IncubEx. “This initial transaction illustrates the suite of futures and options risk management tools being utilized by a growing universe of participants on Nodal Exchange in this new market.”

“Nodal and IncubEx are at the forefront of today’s environmental markets in terms of product development, price transparency, risk management and capital efficiencies,” said Paul Cusenza, CEO of Nodal Exchange. “We’re proud of the growth we’ve seen across these markets and the support customers continue to show for new markets and innovative products.”

Jim Kharouf
Communications Director
P: 773-391-0439

Nodal Exchange
Nicole Ricard
Public Relations
P: 703-962-9816



IVG Energy Ltd, a part of Sage Energy Holdings, is a provider of environmental commodities and markets, providing execution and trade solutions to help customers manage their environmental risks and achieve their sustainability goals. With a team of experienced professionals, IVG Energy Ltd is committed to driving the growth and development of the environmental markets. For more information, visit https://sageenergyholdings.com/.

About IncubEx

IncubEx is an incubator for products, services and technology solutions in environmental markets with partners and stakeholders to design and develop new financial markets, technologies and trading solutions in global environmental, climate risk, and related commodity markets. IncubEx serves as the operator of The Voluntary Climate Marketplace (TVCM). The company also works in conjunction with its global exchange partner, European Energy Exchange (EEX) and its U.S. subsidiary, Nodal Exchange. The IncubEx team is led by former key executives from Climate Exchange, which pioneered exchange listed environmental futures and options contracts and CCX, the world’s first and only voluntary, but legally binding greenhouse gas emission reduction and trading program. IncubEx, a privately held company founded in 2016 with offices in Chicago and London, is uniquely positioned to capture these opportunities globally with its partners. For more information, please visit https://theincubex.com/.

About Nodal Exchange

Nodal Exchange is a derivatives exchange providing price, credit and liquidity risk management solutions to participants in the North American commodities markets. Nodal Exchange is a leader in innovation, having introduced the world’s largest set of electric power locational (nodal) futures contracts and the world’s largest set of environmental contracts. As part of EEX Group, a group of companies serving international commodity markets, Nodal Exchange currently offers over 1,000 contracts on hundreds of unique locations, providing the most effective basis risk management available to market participants. In addition, Nodal Exchange offers natural gas and environmental contracts. All Nodal Exchange contracts are cleared by Nodal Clear which is a CFTC registered derivatives clearing organization. Nodal Exchange is a designated contract market regulated by the CFTC. For more information, please visit www.nodalexchange.com.