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North American Carbon Markets: WCI, RGGI & WCA Programs

Learn about WCI, RGGI and WCA futures and options offered on Nodal Exchange. 

North American Carbon Markets: WCI, RGGI and WCA

North America features three tradable carbon markets – the Western Climate Initiative (WCI – California & Quebec), Regional Greenhouse Gas Initiative (RGGI) and Washington Cap and Invest program.

 

IncubEx works with Nodal to offer futures and options contracts on:  

  • California Carbon Allowances (CCAs)
  • RGGI Allowances
  • Washington Carbon Allowances (WCAs)

 

Contract Overviews

WCI, RGGI & WCA Futures

  • CCA and RGGI vintages include 2017-2030
  • WCA vintages include 2023-2026
  • Physically delivered into the registries
  • Contract size: 1,000 allowances
  • Priced in US dollars
  • Minimum Tick Size: $0.01 per carbon
    allowance
  • Last Trading Day: 3 Business Days, prior to
    the last business day of the delivery month
    Physical Delivery on the last trading day of
    the contract month

WCI, RGGI & WCA Options

  • CCA and RGGI vintages include 2017-2030
  • WCA vintages include 2023-2026
  • European Style
  • Futures Style Margining
  • Lot Size: 1 lot of the underlying contract
  • Priced in US dollars
  • Minimum Tick Size: $0.001 per allowance
  • Strike Price Intervals: $0.05 above and below the at-the-money strike price
  • Exercise: Automatic on the Last Trading Day unless the Exchange is notified to allow the in-the-money options to expire without exercise or exercise expiring out-of-the-money options
  • Futures-Style Margining

Emissions

REGISTRIES

The products highlighted in green are only available on Nodal Exchange.

PRODUCTFUTURES
VINTAGES		OPTIONS
VINTAGES		CONTRACT
CODE		CONTRACT
SIZE		STRIKE
INTERVAL		PRODUCT
SPECS
California Carbon Allowances2021-20302021-2030WCE, WCF, WCG, WCH, WCI, WCJ, WCK, WCL, WCM, WCN1,000 Allowances$0.05Futures
Options
California Carbon Allowances Vintage Specific2021-20302021-2030WSE, WSF, WSG, WSH, WSI, WSJ, WSK, WSL, WSM, WSN 1,000 Allowances$0.05Futures
Options
California Carbon Offset 0N/AWTB1,000 OffsetsFuture
California Carbon Offset 0 with Direct Environmental BenefitsN/AWTD1,000 OffsetsFuture
California Carbon Offset 8N/AWTA1,000 OffsetsFuture
PRODUCTFUTURES
VINTAGES		OPTIONS
VINTAGES		CONTACT
CODE		CONTRACT
SIZE		STRIKE
INTERVAL		PRODUCT
SPECS
Regional Greenhouse Gas Initiative Allowances2021-20302021-2030RGE, RGF, RGG, RGH, RGI, RGJ, RGK, RGL, RGM, RGN1,000 Allowances$0.05Futures
Options
PRODUCTFUTURES
VINTAGES		OPTIONS
VINTAGES		CONTRACT
CODE		CONTRACT
SIZE		STRIKE
INTERVAL		PRODUCT
SPECS
Washington Carbon Allowance2023-20272023-2026WBG, WBH, WBI, WBJ, WBK1,000 Allowances$0.05Futures
Options
Washington Carbon Allowance Specific Vintage2023-2027SVG, SVH, SVI, SVJ, SVK 1,000 AllowancesFutures

About WCI, RGGI & WCA Programs

The Western Climate Initiative (WCI) is made up of California, Washington & Quebec. The California Cap-and-Trade Program aims to decrease greenhouse gas (GHG) emissions 40% by 2030 below 1990 levels and 85% by 2045. The California market was launched in 2012 and covers multiple industries from utilities to industrial plants to fuel distributors. The market for California Carbon Allowances (and equivalent in Quebec) stands as one the largest carbon markets and has 793 registered entities. The Quebec Carbon Market linked to California in 2014. 

The Regional Greenhouse Gas Initiative (RGGI) is currently has 10 member states in the US. It places a cap on generators of 25MW or higher with a goal to reduce emissions 30% by 2030, from 2020 levels. Launched in 2009, RGGI is the first US mandatory carbon cap-and-trade system and has more than 500 market participants. 

Washington state launched the Washington Cap and Invest program on January 1, 2023 with a goal of lowering GHG emissions 45% below the 1990 level and 95% by 2050. An economy-wide program, it covers nearly 70 million tons of CO2 annually and has more than 150 participants. 

Sources : WCI; RGGI; Washington Dept of Ecology  

Fees

CCA Fee TypeFuturesOptions
Screen Execution$2.00$2.00
Clearing$2.50$2.50
Delivery$4.00$2.00
RGGI Fee TypeFuturesOptions
Screen$0.75$0.75
Clearing$1.00$1.00
Delivery$2.00$2.00

Key benefits of trading on Nodal Exchange

  • Effective hedging for North American carbon markets
  • Efficient delivery process
  • Letters of credit available as collateral
  • Capital efficiencies through portfolio margining
  • Products are listed, traded and cleared along side RECs, Renewable Fuels, Power and Natural Gas futures
  • All Cleared by Nodal Clear
  • Competitive transaction costs
  • No membership or data fees
  • Experienced team dedicated to product development and customer support
  • Effective hedging for North American carbon markets
  • Efficient delivery process
  • Letters of credit available as collateral
  • Capital efficiencies through portfolio margining
  • Products are listed, traded and cleared along side RECs, Renewable Fuels, Power and Natural Gas futures
  • All Cleared by Nodal Clear
  • Competitive transaction costs
  • No membership or data fees
  • Experienced team dedicated to product development and customer support

ADDITIONAL RESOURCES

Webpage

Environmental Products on
Nodal Exchange

This page is for illustrative purposes only. For official contract and trading information, please visit Nodal Exchange