Leipzig, Germany, Washington and Chicago – (work wire) – The EEX Group and IncubEx today announced a new cooperation agreement, expanding their collaboration to grow and expand the environmental markets listed on the EEX and Nodal Exchange.
The long-term agreement expands the scope of cooperation and builds on the significant progress made since the initial collaboration between EEX Group and IncubEx which has increased the range of environmental and liquidity products in the European and North American markets.
In Europe, EEX and IncubEx boosted the European Union (EUA) listed EEX derivatives market to become the second leading trading venue. The market share of open interest in EU futures contracts has increased from 5% in 2017 to 22% today. Collectively, EEX and Nodal Exchange – the US arm of the EEX Group – now offer the world’s widest range of listed environmental futures and options contracts, including carbon allowances, offsets, renewable energy certificates (RECs) and renewable fuel credits. The cooperation between IncubEx and EEX Group successfully started in Europe and later extended to North America.
“Sustainability is our future – as a stock exchange and as human beings,” said Peter Ritz, CEO of EEX. “We are committed to further developing the global environmental markets together with IncubEx. That is why it was not difficult for us to extend the mutual cooperation agreement.”
In North America, IncubEx worked with Nodal Exchange to launch its first environmental contracts in 2018. Since then, Nodal has listed more than 100 distinct environmental products, complementing the core strength of Nodal and natural gas futures. Nodal Exchange’s open interest market share in North American environmental products has increased from zero to over 17% today.
“The combination of IncubEx’s environmental expertise with Nodal’s exchange and clearance expertise has resulted in an outstanding environmental future and options offered to better meet the needs of market participants in North America,” said Paul Cusenza, CEO of Nodal. “We are proud of our global collaboration with EEX, Nodal and IncubEx which allows us to play a role, with market stakeholders, in contributing to a global effort to address the challenges we all face with climate change and preserve our planet for the future.”
Since 2017, more than 5.1 million contracts for carbon products have been concluded in Europe and North America under the cooperation, accounting for 5.1 billion tons of CO22. Moreover, more than 444,000 REC contracts (representing approximately 130 million MWh) were traded on Nodal, reaching its open interest record in May 2022 with just under 180,000 contracts (representing 44 million MWh) .
Cooperation has recently been expanded with a wide range of products for the Voluntary Carbon Market (VCM). The EEX Group’s VCM contract portfolio covers four different products, aiming to strike a balance between standardization, on the one hand, and meeting different customer preferences, on the other.
“When IncubEx was founded in 2016, we believed there was an urgent need for a dedicated team focused solely on developing environmental markets with the right exchange partners,” said Michael MacGregor, CEO of IncubEx. “By working with EEX and Nodal, we have established a significant market share, strengthening our partnership as innovators in environmental markets but more importantly providing products and solutions to serve our global client base and accelerating further growth within environmental markets. Looking to the future, there is tremendous momentum backed by the support Unprecedented net-zero targets and market-based solutions to address environmental issues.”
IncubEx was founded by senior executives from the Chicago Climate Exchange (eg, Climate Exchange plc), which established the world’s first voluntary, but legally binding carbon market.
EEX . group Building safe, successful and sustainable commodity markets around the world – together with their customers. The group offers trade in energy, natural gas, environmental products, shipping and agriculture as well as post-clearing and registration services, and connects a network of more than 800 business participants. The EEX group consists of European Energy Exchange (EEX), EPEX SPOT, EEX Asia, Power Exchange Central Europe (PXE), Nodal Exchange as well as registry provider Grexel Systems and software companies KB Tech and Lacima. Clearing is provided by the clearing houses of the EEX Group European Commodity Clearing (ECC) and Nodal Clear. The EEX Group is part of the Deutsche Börse Group. more information: www.eex-group.com
IncubEx is an incubator of 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 with its global exchange partner, the European Energy Exchange (EEX) and its US subsidiary, Nodal Exchange. The IncubEx team is led by former CEOs from Climate Exchange, which pioneered exchange-based environmental trade and CCX, the world’s first and only voluntary, but legally binding program to reduce greenhouse gas emissions and trade. IncubEx is a privately held company founded in 2016 with offices in Chicago and London, uniquely positioned to seize these opportunities globally with its partners. For more information, please visit the website https://theincubex.com/