The standardized contract, tradable on Xpansiv market CBL, provides a benchmark for market participants and corporates to transact high-quality carbon offsets from projects that also deliver high social impact. The SD-GEO will allow for delivery of cookstove projects with a minimum of five Sustainable Development Goals (SDGs) from the Verra or Gold Standard registries.
Eligible projects are carefully vetted under the CBL Standard Instruments Program that contains the Global Emissions Offset™ (GEO®), the first in this series developed by Xpansiv, as well as the Nature-Based Global Emissions Offset™ (N-GEO®), “widely seen as the frontrunner to become the VCM’s biggest price benchmark,” according to Quantum Commodity Intelligence.
“Corporates often look for offset projects that mitigate emissions while also having co-benefits for local communities—projects like clean cookstoves,” said Russell Karas, Xpansiv Head of Carbon Market Development. “This emerging segment of the carbon market will grow exponentially in the coming years, and Xpansiv offers a better way to price and trade these high-quality credits.”
“The concept of co-benefits is not new to CBL’s standardized offset contracts,” said Xpansiv Chief Commercial Officer Ben Stuart. “The N-GEO, for example, also requires a Climate, Community, and Biodiversity accreditation from Verra. The SD-GEO is the next contract in the GEO series that will bring transparency, price certainty, and a simplified selection process to a vital subset of the offset market—another important step toward a carbon-neutral future.”
“Clean cookstove projects deliver significant sustainable development impact, with our high-quality projects reaching 9–11 SDGs, bringing permanent and measurable improvements to the rural poor,” said Chen Yang, Chief Commercial Officer, C-Quest Capital (CQC). “As one of the leading clean cookstove project developers, we welcome Xpansiv’s initiative, setting a core impact benchmark for this project type and establishing a robust market that will support the future of clean cookstove projects.”
Erik Petersson, Head of Macquarie’s Global Carbon business—an Xpansiv investor and co-marketer of carbon offsets from a suite of CQC cookstove projects—called the launch of the SD-GEO contract a “pivotal moment” in simplifying the path to net zero. “With this contract, organizations can gain transparent, direct market access to high-quality ‘social carbon’ based on standardized metrics while supporting truly impactful projects in these communities,” said Petersson. “We’re excited to support the SD-GEO launch and the opportunities it provides to expand what we can offer our clients more broadly.”
Xpansiv reports the SD-GEO will begin trading on 5 December. The announcement follows the launch of ESGclear from Xpansiv company APX, the leading registry and ledger provider for environmental markets. ESGclear provides unprecedented transparency for transactions that require ESG reporting, financing, and mitigation across supply chains.
Xpansiv provides the market infrastructure and data platform for carbon, renewable, and digital-energy commodities. These Intelligent Commodities bring transparency and liquidity to markets, empowering participants to value energy, carbon, and water to meet the challenges of an information-rich, resource-constrained world. The company’s main business units include CBL, the largest spot exchange for ESG commodities, including carbon, renewable energy certificates, and Digital Natural Gas; H2OX, the leading spot exchange for water; XSignals, which provides end-of-day and historical market data; EMA, the leading multi-registry portfolio management system for all environmental commodities; and APX, the leading provider of registry infrastructure for energy and environmental markets. Xpansiv is the digital nexus where sustainability and price signals merge. Xpansiv.com
About C-Quest Capital
C-Quest Capital (CQC) is a world-leading carbon project developer whose purpose is to transform the lives of low-income rural families whose health, well-being, and economic welfare are most at risk from climate change. CQC does this by providing access to clean energy technologies and sustainable land-use solutions that reduce greenhouse gas emissions, combat global climate change, and improve the lives of those in need. CQC was recently awarded “Best Project Developer: Energy Efficiency” and runner-up for “Best Project Developer: Public health” in Environmental Finance’s Voluntary Carbon Market Rankings 2022.
CQC was founded in 2008 and is headquartered in Washington D.C., USA, with subsidiaries in India, Malaysia, Singapore, Cambodia, and Australia and field teams across the countries we operate in. CQC has carbon project operations in over 17 countries across Sub-Saharan Africa, Central America, and South and Southeast Asia. CQC’s Transformation Carbon projects have already reduced CO2 e emissions by 14.62 million tonnes and improved the lives of over 20 million people.
About Macquarie Global Carbon
The “Global Carbon” division of the Commodities and Global Markets group builds on Macquarie’s group-wide energy transition activity and is a continuation of the Group’s 15-year involvement in physical and financial aspects of carbon and environmental product markets around the world. The business provides integrated carbon offsetting solutions across the entire offset lifecycle from generation through to retirement, providing clients with greater access to voluntary and compliance carbon offsets as well as originating, structuring and bringing capital to carbon removal and reduction projects. Find out more at macquarie.com.