The CME Group has introduced a global emissions offset (GEO) futures contract to provide global access to standardized and validated instruments for voluntary carbon offsets.
Using three registries, the contract “enables increased price transparency for voluntary carbon offsets in future months and provides a mechanism for convergence across different carbon registries and project types.” Businesses can offset carbon emission through the Carbon Offsetting and Reduction Scheme for International Aviation, a market-based mechanism for access to credits and the ability to resell credits under the program.
Trading under the symbol GEO, the monthly contracts are listed for the current calendar year and up to three years in advance. Contracts are traded in 1,000 environmental credits and trade for a minimum price of $10 per contract with a 10-contract block minimum.
