1

CFTC Voluntary 

Carbon Markets 

Convening

June 2, 2022
2

 At its core, IncubEx is a product and business development firm. We model, 

develop, and market commodity contracts, services, and technology solutions 

in global environmental, climate risk, and related commodities for exchangetraded and OTC markets.

 IncubEx has a unique mission to advance and improve new and existing 

environmental commodities with our exchange and technology partners. These 

products include global environmental, reinsurance, and weather-related 

commodities.

 Founded in 2016 the leaders of IncubEx were part of the same team that 

developed the world’s first exchange-traded environmental markets in the early 

2000s. We continue to bring that innovative spirit and expertise in supporting 

existing and building future markets to navigate the worlds growing demand for 

climate impact markets.

 Partnership model

 Learn more here

About

Overview
3

 IncubEx utilizes our long-term expertise and market knowledge in partnering 

with exchanges and other market providers to develop and enhance overall 

product lines, connect with customers and bring better solutions to the global 

marketplace.

 In 2017, IncubEx partnered with European Energy Exchange (EEX), to build, 

support and expand its EUA derivatives market.

 In 2018, IncubEx partnered with Nodal Exchange, an EEX subsidiary, to help 

build the world’s broadest suite of listed environmental futures and options

contracts.

 In 2021, IncubEx and Trayport collaborated to launch The Voluntary Climate 

Marketplace (TVCM) for OTC voluntary carbon offset projects.

Partners

Strong Partners
4

The Voluntary Carbon 

Market (VCM)

 Projects that avoid or remove greenhouse gas emissions

 Technology or nature-based

 Robust independent 3rd party verification; precise issuance & tracking in registries

 Offset “quality” is largely in the eye of the beholder

 Projects are generally valid under the various protocols, but choose one

 No uniform “standard” for what is a “good” offset

 Compliance markets provide framework – standards are emerging

 CERs previously under EU ETS

 Offsets under California Cap & Trade

 CORSIA

The VCM has evolved over the past 30 years but many core tenets remain the same.

Carbon offsets are issued in accordance with the protocols of leading independent 

registries with the following general attributes: 
5

 Nearly 500 Members

 680M ton peak emissions baseline; over 700M in GHG 

reductions 2003-2010

 150M tons traded in spot market

 Weighted Average Price of $3.26

 Offset Protocols developed:

CCX Program Summary

Chicago Climate 

Exchange

2003-2010

The world’s first and only 

voluntary, legally binding 

greenhouse gas reduction 

and trading program

Agricultural Methane Collection and Combustion

Agricultural Best Management Practices - Continuous Conservation Tillage and Conversion to 

Grassland Soil Carbon Sequestration

Agricultural Best Management Practices - Sustainably Managed Rangeland Soil Carbon 

Sequestration

Avoided Emissions from Organic Waste Disposal

Coal Mine Methane Collection and Combustion

Forestry Carbon Sequestration

Landfill Methane Collection and Combustion

Ozone Depleting Substances Destruction

Renewable Energy Systems

Small Scale Renewable Biogas
6

Offsets – Bespoke to Standardized

Project Specific

• VCS 2252 Rio AnapuPacaja Project

• Brazil

• REDD+ Vintage 2016

Project Group

• Verra

•Nature Based

• 2016+

Global Standards

• TBD

 OTC Market

 Central Marketplace

 Standard Contracts 

 Listed Futures

 Global Standards

 Global benchmarks

Note: examples for illustrative purposes
7

 Voluntary carbon markets are key to achieving climate goals

 These markets have traditionally been complex, bespoke and opaque

 TVCM is a platform for participants providing best-in-class market 

access, transparency and trade efficiencies 

 This innovative marketplace enables participants to place bids and 

offers on a live market on Trayport’s Joule screen

 A wide range of project types are available for trading, allowing 

participants to choose the specific attributes of offsets including 

technology type, vintage, geography, size, registry and price

 TVCM creates a neutral platform to expand market access and connect 

more participants in a fair and transparent way

 TVCM voluntary carbon offsets are viewable alongside a global suite of 

exchange traded environmental and energy markets (subject to 

exchange authorization)

 Bilateral settlement of contracts allows for transactional flexibility

 Simplified bilateral, post-trade process

About 

TVCM

OVERVIEW
8

Environmental 

Futures on 

Nodal Exchange

IncubEx & Nodal Exchange Partnership

• Since 2018, Nodal has launched futures and options for 90+ 

distinct environmental markets.

• The offering includes: 

 North American Carbon Futures & Options (CCA & RGGI)

 Renewable Energy Certificate Futures & Options

 Renewable Fuels Futures & Options (RINs, California LCFS 

and Oregon CFP)

 SO2 and NOx Futures

• Open interest in Nodal environmental futures and options stand 

at over 200,000 lots with positions out to 2032. (as of 5/2022)

• Upcoming Offsets Listing*: 

 7 offset futures and 1 renewable natural gas contract

 Adds to the 2 existing futures contracts for California Offsets

 The offering will expand on existing futures and re-open 

access to the CER market

*Pending regulatory review
9

Upcoming Offsets Contracts on Nodal 

Exchange*

• Existing Offset Futures:

– California Compliance Offset -8 (CCO-8) Futures

– California Compliance Offset - 0 (CCO-0) Futures

• Live on Nodal Exchange June 17th (*pending regulatory review)

– CORSIA-eligible Offset Futures & Options

– Nature-based Offset Futures & Options

– Carbon Removal Offset Futures

– Global Emission Reduction (GER) Offset Futures

– Certified Emission Reductions (CERs) Futures

− Commitment Period 2

− 2013+ (Article 6 Ready)

− 2016+ (CORSIA Eligible)

9
10

Environmental Open Interest

On Nodal Exchange

0

50,000

100,000

150,000

200,000

250,000

Open Interest
11

Thank

You

Contact Information:

Dan Scarbrough

Co-founder, President & COO

dan@theincubex.com

Chicago Office 

410 North Michigan Avenue, Suite 910

Chicago, IL 60611

+1 (312) 464 9801

The material contained in this document (Material) is for information purposes only. This Material is not 

intended as an offer or solicitation for the purchase of any financial instrument or any other action. It is 

intended as general information and is not for distribution or publication in the press or elsewhere without 

prior permission of IncubEx, Inc. (IncubEx). The Material is general information intended for recipients that 

understand the risks associated with reports of this nature. It does not take into account of whether a 

course of action or associated risks are suitable for the recipient.

The Material is based on sources that we believe to be reliable, but we give no undertaking that it is 

accurate or complete and IncubEx cannot and does not guarantee the accuracy, validity, timeliness or 

completeness of any information or data made available to you for any particular purpose. Neither IncubEx 

nor any associate of it will be responsible for any errors or omissions or for the results obtained from the 

use of such information or for any loss or damage that could result from interception by third parties of any 

information made available to you via this document. IncubEx or one of its associates may have used the 

information before it was published within this document. Any opinions are subject to change without notice 

and IncubEx is under no obligation to report or keep information accurate. Neither IncubEx nor any 

associate of it provides financial, legal or tax advice. Clients of IncubEx and readers of this document are 

encouraged to consult their own financial, legal and tax advisor on whether a course of action or associated 

risks are suitable for the recipient of this Material. Neither the information nor any opinions stated in this 

document constitutes a solicitation or offer by IncubEx to buy or sell any securities or other financial 

instruments or provide any investment advice. Neither IncubEx nor any associate of it will be responsible for 

any unlawful distribution of this document to any third parties.

This document is strictly confidential. Do not copy, reprint or distribute without prior consent of the 

IncubEx. If found, please destroy or send it back to IncubEx. © June 2022