BOYERTOWN, Pa., April 8, 2019 /CNW/ -- ClimeCo Corporation is pleased to announce that on April 7, 2019, they participated in the first trade of the new California Carbon Offset futures contract (CCO Contract) that was listed by the Intercontinental Exchange (ICE). The CCO Contract provides critical price clarity and hedging capabilities to entities involved with offset credits in the California Cap and Trade program. This new product will also contribute to market liquidity and spur the development of new projects.
As a leading developer of carbon offset projects in the California Cap and Trade program, ClimeCo is thrilled to support innovation in the offset marketplace. "The launch of the new CCO Contract at ICE is exciting for ClimeCo and our offset project partners," said Derek Six, ClimeCo's Chief Business Officer. "The availability of this contract and the transparent price quotes it will offer is going to spur investment in new projects. We have been looking forward to the launch of an offset contract for a long time and it was rewarding to be part of this first transaction today."
The new ICE contract is a futures contract for the physical delivery of California Carbon Offsets, where the invalidation period of the offset has been exhausted. Contracts have so far been listed as far out as December 2022, offering market participants long-term price visibility. For many of our clients, this new contract will be critical in understanding the compliance options that are available to them and their related costs.
The California Cap and Trade program began in 2012 and sets limits on the Greenhouse Gas (GHG) emissions in the state, which decline over time. Emitters comply with the regulation by submitting compliance instruments equivalent to their emissions each year. While offsets represent a small piece of the compliance program (entities can utilize offsets for up to 8% of their total obligation), offset projects offer many critical GHG benefits, like engaging non-capped sectors in the economy, spurring technological innovation, and helping to bring new practices and technologies to scale. Offset projects also offer a wide variety of other co-benefits, such as improvements to local air and water quality, protection of ecosystems, and employment.
To learn more about ClimeCo, about how you can be a part of this growing business or how your company can benefit, visit us at www.climeco.com.
ClimeCo Corporation is a respected advisor, transaction facilitator, and trader of environmental commodity market products. Specialized expertise in regulated carbon, regional criteria pollutant trading programs, voluntary markets, and project development and financing of CO2 abatement and mitigation systems, complement ClimeCo's diverse portfolio.
SOURCE ClimeCo Corporation
For further information: Nancy Marshall, Corporate Marketing Director, 864-266-1210, [email protected], http://www.climeco.com