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CFTC Second 

Voluntary Carbon 

Markets Convening

July 19, 2023
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 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 exchange-traded 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.

 Learn more here

About

Overview
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 CFTC Exempt Commercial Market (ECM)

 Nearly 500 Members

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

recorded GHG reductions 2003-2010

 150M tons traded in CCX spot; Weighted average price 

$3.26

 Offset Protocols developed:

CCX Program Summary

Chicago Climate 

Exchange

(CCX)

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
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 Designated as a Contract Market by CFTC in 2004

 Part of Climate Exchange PLC

 CCX and ECX – EUA Futures

 Listed the first environmental commodity futures in 2004

 SO2 futures – based on EPA Acid Rain Program

 Listed CFI futures on CCX CFI in 2007

 Listed the first RGGI futures contract in 2008

 Listed the first REC futures contracts in 2009

 Climate Exchange – Acquired by ICE 2010

 CCFE contracts ICE US Environmental contracts 2012

Chicago Climate 

Futures Exchange 

(CCFE)

The world’s first environmental 

derivatives exchange

Overview
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 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
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 VCM has traditionally been complex, bespoke and opaque

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

access, transparency, neutrality and trade efficiencies 

 This innovative marketplace enables participants to place bids and 

offers on a live market on Trayport’s Joule screen

 a proven technology in global energy markets

 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

 Viewable alongside a global suite of exchange traded environmental and 

energy markets (subject to exchange authorization)

 TVCM Settle offers centralized, streamlined payment versus delivery

 Bilateral settlement of contracts allows for transactional flexibility

About 

TVCM

OVERVIEW
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The Voluntary Carbon 

Market (VCM)

 Projects that avoid or remove greenhouse gas emissions

 Technology or nature-based

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

 Protocols differ by registry / standard but many commonalities

 Market Infrastructure Providers include:

o Protocol Governance & Credit Issuance (including 3rd party verification) & Tracking

o Derivatives Exchanges & Spot Marketplaces

o Brokers & other intermediaries

o Data, Technology & other Service Providers

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: 
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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
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Scaling and advancing the VCM

 Like any well-functioning market, the VCM should have a market structure that looks like other commodities

 CFTC has played a vital role as derivatives market regulator for nearly 50 years, and regulator of exchange traded 

environmental commodities for nearly 20 years

 Building market consensus / confidence on offset “quality” and GHG reduction best practice use cases

– Compliance markets provide framework – standards are emerging

 CERs previously under EU ETS; Offsets under California Cap & Trade, RGGI, Washington Cap and Invest; CORSIA

– Private initiatives like the ICVCM

– Public initiatives like the USDA Climate-Smart Agriculture and Forestry

 Market Infrastructure Providers – scaling VCM markets:

– Regulatory framework – best practices and strong governance

– Operational best practices including IT security, KYC & AML

– Stakeholder engagement and focus on innovation

– Neutrality – reducing conflicts of interest

– Increasing transparency throughout full VCM offset lifecycle
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Thank

You

Contact Information:

Dan Scarbrough

IncubEx, TVCM

Co-founder, President & COO

dan@theincubex.com

Chicago Office 

410 North Michigan Avenue, Suite 910

Chicago, IL 60611

+1 (312) 464 9801

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