CME-CBL ACCU futures debut with Freepoint-Mercuria trades post-Oct 14 launch

CBL Australian Carbon Credit Unit futures registered its first trades with five contracts traded as a block between Freepoint Commodities and Mercuria, Australia’s derivative marketplace, CME Group said Oct. 18.

CBL ACCU futures, launched by CME Group on Oct. 14, are based on Xpansiv market CBL's underlying ACCU spot market and allow ACCU deliveries on the Australian National Registry of Emission Units electronic system.

The futures contract is underpinned by the Platts ACCU generic spot price, which is used to settle the CBL generic and human-induced regeneration ACCU spot contracts. Platts is part of S&P Global Commodity Insights.

ACCUs are carbon credits issued by Australia’s Clean Energy Regulator to projects under specific methodologies that contribute to carbon abatements. One ACCU represents one ton of carbon dioxide equivalent of emissions.

Peter Keavey, global head of energy and environmental products at CME Group, said the ACCU futures are Xpansiv's latest product launch that aims to help clients hedge against risks associated with carbon reduction strategies.

This aligns with the increasing demand for ACCUs from voluntary and compliance buyers, also known as Safeguard entities.

“ACCU futures will not only provide access to the Australian market but will also help establish a forward curve, allowing for more price discovery in this rapidly evolving space,” Keavey said.

Platts assessed spot generic ACCUs at A$37.50/mtCO2e ($25.06/mtCO2e) on Oct. 18, rising 5 Australian cents/mtCO2e on the session. Platts assessed HIR ACCUs at A$37.50/mtCO2e, declining 5 Australian cents/mtCO2e on the day.