EEX Group and IncubEx Extend Cooperation to Further Develop Global Environmental Markets


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LEIPZIG, Germany & WASHINGTON & CHICAGO — EEX Group and IncubEx today announced a new collaboration agreement that expands their collaboration to drive the growth and expansion of the listed environmental markets on EEX and the Nodal Exchange.

The long-term agreement expands the collaboration and builds on the significant progress made since the initial collaboration between EEX Group and IncubEx, which has increased environmental product offering and liquidity in the European and North American markets.

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In Europe, EEX and IncubEx have made the EEX market for listed European Union Allowance (EUA) derivatives the second largest exchange. The open interest market share in the EUA futures contract has increased from 5% in 2017 to 22% today. Together, EEX and Nodal Exchange – the US arm of EEX Group – now offer the broadest global range of listed environmental futures and options contracts, including carbon credits and offsets, renewable energy credits (RECs) and renewable fuel credits. The cooperation between IncubEx and the EEX Group started successfully in Europe and was later extended to North America.

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“Sustainability is our future – as an exchange and as a person,” said Peter Reitz, CEO of EEX. “Together with IncubEx, we are committed to further developing the global environmental markets. That’s why it wasn’t difficult for us to extend the joint cooperation agreement.”

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In North America, IncubEx partnered with Nodal Exchange to launch its first environmental contracts in 2018. Since then, Nodal has listed more than 100 different environmental products that complement Nodal’s core power and natural gas futures contracts. Open interest market share in North American environmental products on Nodal Exchange has grown from zero to over 17% today.

“The combination of IncubEx’s environmental expertise with Nodal’s exchange and clearing expertise has resulted in an outstanding offering of green futures and options to better serve the needs of market participants in North America,” said Paul Cusenza, CEO of Nodal. “We are proud of our global collaboration with EEX, Nodal and IncubEx, which enables us to play a role together with our market participants by contributing to global efforts to better manage the climate change challenges we all face and to preserve our planet the future.”

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Since 2017, over 5.1 million contracts involving European and North American carbon products have been processed under the cooperation, corresponding to 5.1 billion tons of CO2. Additionally, more than 444,000 contracts in Renewable Energy Certificate (REC) contracts (representing almost 130 million MWh) were traded on Nodal, reaching a record open interest of nearly 180,000 contracts (representing 44 million MWh) in May 2022.

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The collaboration has recently expanded to include a wide range of products for the Voluntary Carbon Markets (VCM). The EEX Group VCM Contract Suite comprises four different products that aim to find a balance between standardization on the one hand and consideration of different customer preferences on the other.

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“When IncubEx was formed in 2016, we felt there was an urgent need for a dedicated team focused solely on developing environmental markets with the right exchange partners,” said Michael MacGregor, CEO of IncubEx. “By working with EEX and Nodal we have built significant market share which has solidified our partnership as innovators in the environmental markets but more importantly we have delivered products and solutions to serve our global customer base and continue to grow to accelerate the environmental markets. Looking ahead, there is tremendous momentum, bolstered by unprecedented support for net zero targets and market-based solutions to address environmental challenges.”

IncubEx was founded by senior executives of the Chicago Climate Exchange (ie Climate Exchange plc), which established the world’s first voluntary but legally binding carbon market.

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EEX Group builds safe, successful and sustainable raw material markets worldwide – together with its customers. The group offers trading in electricity, natural gas, environmental products, freight and agricultural products, as well as subsequent clearing and registration services, connecting a network of more than 800 trading participants. The EEX Group consists of European Energy Exchange (EEX), EPEX SPOT, EEX Asia, Power Exchange Central Europe (PXE) and Nodal Exchange as well as the registry provider Grexel Systems and the software companies KB Tech and Lacima. Clearing is carried out by the clearing houses of EEX Group European Commodity Clearing (ECC) and Nodal Clear. The EEX Group is part of the Deutsche Börse Group. Further information: www.eex-group.com

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About IncubEx:

IncubEx is an environmental markets products, services and technology solutions incubator with partners and stakeholders to design and develop new financial markets, technologies and trading solutions in global environmental, climate risk and related commodity markets. The company works with its global exchange partner European Energy Exchange (EEX) and its US subsidiary Nodal Exchange. The IncubEx team is led by former Climate Exchange executives who pioneered exchange-based environmental trading and CCX, the world’s first and only voluntary but legally binding greenhouse gas emissions reduction and trading program. IncubEx, a privately held company founded in 2016 with offices in Chicago and London, is uniquely positioned to capitalize on these opportunities with its partners around the world. For more information, visit https://theincubex.com/

View source version on businesswire.com: https://www.businesswire.com/news/home/20220922005506/en/

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NicoleRichard
Nodal Exchange Public Relations
P: 703-962-9816
[email protected]

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