CME Group plans to launch a futures contract in March that would provide a regulated, market-based solution to manage global emissions risk.


The Global Emissions Offset (GEO) futures contract, which is pending relevant regulatory reviews before a launch on March 1, was jointly developed with Xpansiv CBL Holding Group, a data and technology firm focused on market transparency. CME announced the contract on Tuesday.

“Demand for voluntary carbon offsets is growing around the world as more countries and companies take action toward creating a lower carbon economy,” said CME’s Peter Keavey, global head of energy. “GEO futures will provide a regulated, market-based solution that can help address risk management needs for near-term emissions reduction strategies, as well as a...