The First Phase 5 EUA Futures Trade

CHICAGO and LONDON, 01/12/2025 – IncubEx is pleased to announce a milestone in European environmental markets with the successful execution of the first-ever EUA Phase 5 futures trade.

The trade on 27/11/2025, executed with Shell participating on one side of the transaction and brokered by Tradition (TFS), marks the first exchange-traded transaction related to Phase 5 of the EU Emissions Trading System (ETS).

Phase 5 of the EU ETS is set to begin in 2031. EEX currently lists futures contracts on EUAs up to December 2033, with a December 2034 contract due for listing shortly.

Dan Scarbrough, CEO of IncubEx, commented: “We are pleased to see market participants actively using EEX futures further down the curve. Over the past two decades, EU ETS futures and options on EEX have laid the groundwork for these important market-based solutions. The ability to hedge exposure well into the next decade provides greater certainty and clarity to market participants, reinforcing the value of these mechanisms as effective tools in addressing carbon emissions.”

 Nick Osborne, Vice President for Global Environmental Products at Shell, commented: “Shell has a long-standing commitment to advancing transparent, efficient carbon markets. Our participation in the first Phase 5 EUA trade on EEX  is a milestone in the evolution of the EU Emissions Trading System and reflects Shell’s continued role in supporting robust, high-integrity carbon markets that help enable the energy transition.”

 John Molloy, Head of Environmental Products at Tradition (TFS), commented:

“We are delighted to have brokered the first ever Phase 5 EUA Futures trade, and look forward to developing and supporting further opportunities as this new trading space deepens. This milestone represents further proof that the EU Emissions Trading Scheme sits front and centre in the global drive to reduce greenhouse gas emissions.”

Alex Lewis, MD TFS Energy and Commodities added:

“This supports our commitment in the ongoing development of the carbon market and we are pleased to remain at the forefront as it continues to further evolve.”

Since the launch of the EU ETS 20 years ago, related emissions have dropped approximately 50% below 2005 levels, according to the European Commission.  Cumulative revenues from the EU ETS auctions have surpassed 216 billion EUR, contributing to national government programmes as well as the EU’s Innovation Fund, Modernisation Fund, and the Social Climate Fund (SCF) to support low-carbon innovation and the EU’s energy transition efforts.

EEX hosts EUA auctions in coordination with the European Commission, the EU Member States and the EEA EFTA States, as well as with the relevant authorities of Germany, Poland and the United Kingdom on behalf of Northern Ireland. EEX also currently serves as the sales platform for the nEHS in Germany.

More information about the EEX EU ETS futures & options listed are available here.

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.

The company 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 Shell

Shell is a global group of energy and petrochemical companies, employing around 96,000 people across more than 70 countries. It has activities ranging from oil and gas exploration and production to the marketing of fuels and lubricants, and research and development. It is increasingly offering its customers low-carbon energy solutions.

Shell’s Environmental Products Trading Business (EPTB) offers both Shell and our customers access to a portfolio of carbon credits drawn from a range of methodologies. Shell is one of the largest global participants in carbon markets and has been active since 2003, when the first emissions trading scheme was set up in Europe. Since then, we have expanded significantly to become a global presence in both the regulated and voluntary carbon markets.

About Tradition (TFS)

Tradition (TFS) is a leading brokerage, electronic trading, and post trade services provider to global financial and commodity markets, supported by a network of more than 2,400 people across over 30 countries. We connect clients to liquidity with precision, combining the integrity of voice broking with the clarity of electronic trading solutions.

Tradition (TFS) is the trading name of Compagnie Financière Tradition (TFS), listed on the Swiss stock exchange. Our activities are supervised by leading regulators including the FCA, SEC and CFTC.

Further information is available at www.tradition.com.