NODAL EXCHANGE CONTRACT SPECIFICATION

Global Emission Reduction (GER) Future

ITEM SPECIFICATION

Contract Description

Physically delivered offsets based on a basket of the following carbon offset subcontracts: Base Carbon Contract (BCC), Forestry Carbon Contract (FCC), Prime 

Carbon Contract (PCC), and Carbon Capture Contract (CCC), where weightings are 

calculated and determined by the GER Supervisory Committee (GERSC), in 

accordance with the GER Governance and Methodology Protocol posted at 

http://www.nodalexchange.com.

Contract Code GERE

Settlement Method Physical Delivery

Hours of Trading As defined at http://www.nodalexchange.com

Unit of Trading 1 lot

Lot Size 1,000 Metric Tons (MTs) representing 1,000 Offsets

Currency US Dollars

Minimum Tick $0.01 per MT

Settlement Price Precision $0.01 per MT

Last Trading Day Three Business Days prior to the last Business Day of the delivery month

Delivery Day Three Business Days after the Last Trading Day (Last Business Day of the delivery 

month)

Contract Series

Monthly expirations for the current year, and the following two years. 

Annual December contracts for up to additional 7 years. 

The Exchange may list any other calendar month contract set off the standard listing 

cycle.

Deliverable Product

Offsets eligible for delivery under each sub-contract are as below. The denomination 

of each subcontract is 1 metric ton of CO2 or equivalent. 

Base Carbon Contract (BCC) – BCC covers carbon offsets for the entire spectrum of 

carbon reduction projects except for 1) Hydroelectric power production project 

activities with a generating capacity exceeding 20 MW, 2) Projects involving the 

destruction of nitrous oxide (N2O) from adipic acid production, and 3) Projects 

involving the destruction of trifluoromethane (HFC-23). 

Forestry Carbon Contract (FCC) – FCC covers carbon offsets generated by naturebased projects. Eligible offsets are:

1) Verified Carbon Standard (VCS) - Carbon Emission Units from an approved VCS 

registry project verified under Agriculture, Forestry and Other Land Use (AFOLU) 

sector program methodologies accompanied by either Climate, Community and 

Biodiversity (CCB) Certification or Social Carbon certification or certifications issued 

under Verra’s Sustainable Development Verified Impact Standard (SD VISta) program 

for at least 3 SDGs (including SDG 13: Climate Action)
NODAL EXCHANGE CONTRACT SPECIFICATION

ITEM SPECIFICATION

2) Gold Standard (GS) – Carbon Emission Units from an approved GS registry project 

verified under GS Land Use & Forestry Requirements (including Agriculture & 

Afforestation/Reforestation projects) accompanied by registry-approved SDG 

contributions for at least 3 SDGs (including SDG 13: Climate Action) under GS’s Gold 

Standard for the Global Goals (GS4GG)

Prime Carbon Contract (PCC) – PCC covers carbon offsets issued with additional 

certifications for Sustainable Development Goal (SDG) co-benefits. Eligible offsets

are:

1) Verified Carbon Standard (VCS) – Carbon Emission Units from an approved VCS 

registry project accompanied by certifications issued under Verra’s Sustainable 

Development Verified Impact Standard (SD VISta) program for at least 3 SDGs 

(including SDG 13: Climate Action)

2) Gold Standard (GS) – Carbon Emission Units from an approved GS registry project 

accompanied by registry-approved SDG contributions for at least 3 SDGs (including 

SDG 13: Climate Action) under GS’s Gold Standard for the Global Goals (GS4GG)

Carbon Capture Contract (CCC) -– Offsets must be issued and available for 

immediate cancellation. Eligible offsets are: 

1) CCC initially represents one European Union Allowance (EUA), being the tradable 

unit under the European Union Emissions Trading Scheme (EU ETS) .

In the future, each CCC is expected to represent either 

1) such number of EUAs as the GER Supervisory Committee (GERSC) may determine, 

or 2) Verified Carbon Standard (VCS) – Carbon Emission Units from an approved VCS 

registry project registered under VERRA methodology VM0044 – Biochar Utilization 

In Soil and Non-Soil Applications or a Carbon Emission Unit generated by a qualifying 

type of carbon removal project as determined by the GERSC.

Delivery eligibility criteria for each subcontract is further defined in GER Governance 

and Methodology Protocol. 

GERSC will provide independent governance and review, monitor ongoing 

development, and conduct necessary amendment on the eligible deliverable 

products and registries in accordance with GER Governance and Methodology 

Protocol. 

The weightings of GER sub-contracts are calculated and determined by GERSC 

annually through the annual review in February of each review year. The 

amendment to the weightings will usually take effect in April of the review year, 

applicable from the April expiry of the review year to the March expiry of the 

following year.
NODAL EXCHANGE CONTRACT SPECIFICATION

ITEM SPECIFICATION

Current Weightings (Effective from June March 24th, 22023022 to March April 15th, 

20242023):

• Base Carbon Contract (BCC) – 38.352.3%

• Forestry Carbon Contract (FCC) – 38.723.9%

• Prime Carbon Contract (PCC) – 22.80%

• Carbon Capture Contract (CCC) – 1%

Eligible vintage start in January 1st, 2013 and later.

Registry

Any offset must be registered in any of the following registries: Gold Standard

Impact Registry, Verra Registry, or European Union Emission Trading System Union 

Registry. 

GER Supervisory Committee (GERSC) will provide independent governance and 

review, monitor ongoing development, and conduct necessary amendment on the 

eligible deliverable products and registries in accordance with GER Governance and 

Methodology Protocol.

Daily Settlement Price Determined by the Exchange based on exchange activity, other market data, and 

extrapolation to traded contracts, as appropriate

Final Settlement Price The Daily Settlement Price on the Last Trading Day

Delivery

On the Last Trading Day, the Exchange will provide the Clearing House with 

information identifying the Participants with delivery obligations for the purpose of 

issuing Tender and invoice notices in accordance with Section IX (Physical Delivery 

and Settlement) of the Clearing House Rulebook.

Final Settlement (Payment) 

Date

Three or four Business Days after the Last Trading Day on the successful delivery of 

the underlying instruments (if the delivery confirmation is available by 11:30am on 

the third Business Day after the Last Trading Day, the payment will be made on the 

same day during the Midday Margin Cycle; if it is available after 11:30am, the 

payment will be made on the next Margin Cycle which will be the next Business Day)

Position Limit https://www.nodalexchange.com/files/autogenerated/Nodal_Rulebook_Appendix_

C-Limits_and_Levels.PDF

Margin Unit US Dollars

* The GER Contracts have been licensed for use by Nodal Exchange. Neither Net Zero Markets, the GERSC, or any of their officers, members, 

employees or affiliates (as the case may be) make any representation, warranty, condition, undertaking or term, whether express, implied or 

statutory, regarding or relating to:(i)the GER Contracts or to the truth, accuracy, completeness, up-to-dateness or otherwise of any of the data, 

information, documentation, or materials taken into account (or not taken into account) by the GERSC in making any decision, or taking any 

action (or refraining from taking any action), whether such data, information, documentation, or materials was prepared by or on behalf of the 

GERSC (including, without limitation, by Net Zero Markets or its advisors), constituted or was based on publicly available information (or was 

derived therefrom) or was provided to the GERSC or to Net Zero Markets (as the case may be) by one or more third parties; and(ii)the design, 

terms or functionality of the GER Contracts (or any of them) or their merchantability or fitness for any particular purpose. Neither Net Zero 

Markets, the GERSC, nor any of their respective officers, members, employees, affiliates or advisors (each, a Relevant Person) shall be liable to 

any such Exchange’s members or any other third party, whether in contract (including under any indemnity), in tort (including negligence), under 

a warranty (express or implied), under statute or otherwise, in respect of any loss or damage suffered by any such Exchange, member or other 

third party arising in respect of, or in connection with (including reliance on) any act or omission of any of the foregoing comprising or in respect 

of any amendment, decision, judgement, conclusion, opinion, exercise of discretion, announcement, notice or publication made, reached or 
NODAL EXCHANGE CONTRACT SPECIFICATION

formulated in the course of carrying out their obligations or duties hereunder or in the course of exercising any discretion hereunder, except where 

such loss or damage is directly caused by the Relevant Person’s willful misconduct or fraud. In any event, Net Zero Market’s liability to an 

Exchange’s members under or in connection with this Protocol will not exceed the net fees it receives from such Exchange directly in connection 

with the GER Contracts in the calendar year in which its liability is determined or agreed. Without prejudice to the foregoing, neither Net Zero 

Markets, the GERSC, nor any of their respective officers, members, employees, affiliates or advisors shall be liable to any such Exchange’s members 

or any other third party under any circumstances arising from contract (including under any indemnity), in tort (including negligence), under any 

warranty (express or implied) under statute or otherwise in each case for any indirect, incidental, exemplary, special or consequential punitive 

losses or damages arising under this Protocol or GER Contracts amended (or not amended) pursuant to this Protocol, including loss of profits, 

regardless of whether such damages could have been foreseen or prevented. Neither Net Zero Markets nor the GERSC makes any warranty that 

the members of any Exchange listing any GER Contract will be able to use such GER Contract (or any carbon credits incorporated within it) for 

offsetting purposes or to meet any compliance or regulatory requirement, statutory obligation or the requirements under any other applicable 

law, regulation or scheme. Such Exchange members are required to make, and rely upon, their own enquiries.