With the voluntary carbon markets being largely bi-lateral and opaque, The Voluntary Climate Marketplace (TVCM) operated by IncubEx aims to bring transparent pricing and more efficient trading processes to the growing base of stakeholders looking to achieve net-zero commitments around the world.
The Voluntary Climate Marketplace
TRADE OFFSETS ON SCREEN
Voluntary carbon offsets are based on verified projects that allow carbon emitters to offset “unavoidable” emissions by purchasing credits from projects that remove or reduce greenhouse gas emissions. These projects vary widely in design and purpose, and occur outside a regulatory or mandated policy.
TVCM allows traders, brokers, corporates, and offset project developers to access and trade voluntary carbon offsets from leading offset standards on-screen (Joule). It further provides a standardised bilateral contract to greatly simplify the transaction.
TVCM Offer Five Standard Contracts
Through TVCM, five voluntary carbon standards are available to trade.
- Gold Standard
- Verified Carbon Standard
- Climate Action Reserve
- American Carbon Registry
- WACI ARB
UNDERSTANDING THE VOLUNTARY
Voluntary carbon offsets are based on verified projects that are developed under a series of well recognized and established standards. There is a range of activities that can take place to develop offset projects including methane destruction, industrial gases, nature-based solutions (forestry, agriculture, land-use, etc.) and energy efficiency. These projects occur outside a regulatory or mandated policy or requirement and are thus ‘voluntary’.
Voluntary offsets provide buyers with a way to begin to ‘offset’ their GHG emissions in the near-term while potentially exploring longer-term opportunities or investments to reduce emissions within the business. Voluntary offsets also help to ‘offset’ emissions that may not be addressable directly by a company, such as business travel or further down their supply chains. Offsets also help buyers to begin to internalize a price on carbon in a material way.
What are compliance or mandatory carbon markets?
Compliance markets are set up and operated by states, regions and countries. They mandate various emitters to reduce their emissions, usually through a cap-and-trade structure. Carbon allowances are “capped” each year and reduced over time, and participants are required to buy allowances if they are over their allotted carbon levels. Companies that reduce emissions through innovation and efficiencies can sell those credits.
What types of carbon credits are eligible to be listed?
Contracts are offered based on the following voluntary standards: Gold Standard, Verified Carbon Standard, Climate Action Reserve And American Carbon Registry. These registries are recognized by the Taskforce on Scaling the Voluntary Carbon Markets (TSVCM) and International Carbon Reduction and Offset Alliance (ICROA). Projects under various registries range from renewable energy such as wind, solar and hydro to forestry and avoiding deforestation and others. These registries cover the vast majority of carbon offsets that are available.
How do you trade these markets using the platform?
TVCM is a hybrid market, whereby transactions take place on-screen with final deal execution taking place via a bilateral contract. The TVCM standardised contract simplifies the bilateral contract, reducing time and cost to transact
What protections are in place for market participants?
Voluntary carbon credits offered on TVCM are from respected and verified organizations.
“This collaboration is focused on increasing market access, transparency and execution efficiencies in more bespoke off-exchange voluntary carbon offset credits and other environmental attributes alongside more liquid, standardised exchange-traded environmental commodities,” said Michael MacGregor, CEO, IncubEx. “The IncubEx team has deep-rooted experience in pioneering voluntary carbon markets at Chicago Climate Exchange (CCX) and this initiative is in direct response to voids and opportunities expressed to us by our longstanding network of environmental market customers.”
LEARN MORE ABOUT TVCM
AND TRADING CARBON OFFSETS
Talk to our expert team for more information about trading offers with The Voluntary Climate Marketplace.