Carbon Markets
Evolution Markets is a pioneer in global carbon markets, assisting in the formation of cap-and-trade programs and facilitating many of the markets’ first trades. As a viable and cost-effective means to reduce global emissions of greenhouse gas emissions, carbon trading is an ever-growing part of the international, national, and local approach to tackling climate change. Our experience in carbon markets is deep and our brokers are the markets’ most experienced. We advise clients on market developments and risk management. From trade execution in highly liquid allowance markets to the structuring of long-term carbon credit transactions, our Carbon Markets teams in London, New York, and San Francisco can meet your risk hedging and market access needs.
With increasing awareness of climate change, many corporations and government agencies have undertaken voluntary commitments to reduce their emissions of greenhouse gases.
While these commitments take many forms, it is difficult to completely eliminate your carbon footprint. Many are offsetting their carbon emissions by financing the reduction of carbon emissions elsewhere, a viable strategy considering the global impact of greenhouse gases.
Offsets, or voluntary emission reductions (VERs), are created when an entity undertakes actions to create verified GHG reductions. The resulting credits can be sold to entities to meet their voluntary commitments. Offset procurement often comes with specific credit criteria (location, type, etc.) and with cost-efficiency goals.
Evolution Markets can help your organization formulate a comprehensive offset program and source cost-effective supply to meet these goals.
To learn more about voluntary carbon offsets, contact our teams in New York: +1 (914) 323 0265, uscarbon@evomarkets.com and London: +44 207 264 4550, londoncarbon@evomarkets.com.
The EU Emissions Trading Scheme (EU ETS) is an installation-based, cap-and-trade system created to deal with the issue of climate change and the emission of greenhouse gases, such as carbon dioxide (CO2). The EU ETS requires largeemitters of carbon emissions to monitor, report, and reduce their annual emissions. The EU allocates participating sources, such as energy and heavy industry, a certain number of emissions "allowances" (or EUAs) based on past performance and other parameters. The remaining allowances under the emissions quotas are auctioned by the EU.
Evolution Markets was one of the first brokers in the EU ETS and has been consistently recognized for its excellence in service.
Our London-based team assists clients manage risk in the EU ETS through structured purchases of carbon credits, trading listed futures contracts for clearing on exchanges, or executing hedging strategies in the options market.
To learn more about European carbon markets, contact: +44 (0) 207 264 4550, londoncarbon@evomarkets.com.
California operates one of the most active carbon trading markets in the world, with a diversity of counterparties covering 85% of the State’s economy and actively traded markets for allowances and credits. The California carbon market began in 2012, and it is one of State’s primary tools to meets its goal of reducing greenhouse gases emissions to 1990 levels by 2020.
The California Carbon Market is linked with a similar carbon reduction scheme in the Canadian province of Quebec.
Evolution Markets is a leading broker in the California carbon market, and it has facilitated many of the markets’ landmark trades. Its brokers located in SanFrancisco and New York facilitate over-the-counter trades of allowances andcredits for bi-lateral execution, as well as block futures transactions cleared on ICE.
When Evolution Markets acts as a broker in carbon futures contracts, it is acting through its NFA-regulated subsidiary, Evolution Markets Futures LLC.
To learn more about California carbon markets, contact our teams in California: +1 (415) 963 9120 and New York: +1 (914) 323 0265, uscarbon@evomarkets.com.
In response to the growing threat of climate change, a group of nine northeast states formed a regional approach to reduce greenhouse gas emissions using cost-effective market measures.
The resulting Regional Greenhouse Gas Initiative (RGGI) is a pioneering regional U.S. carbon market that has been effective in meeting the participating states’ carbon reduction goals at the lowest possible cost.
RGGI caps CO2 emissions from fossil fuel power generators located in participating states by auctioning allowances equal to their allotted carbon emissions. These allowances are tracked in a central RGGI registry and can be freely traded.
Evolution Markets participated in the establishment of this market, and continues to provide trade execution services. We arrange allowance trades in the over-the-counter market, including trades in RGGI allowance futures for clearing on the ICE exchange.
In addition, we offer price transparency through market data resources and risk management advisory services.
To learn more about RGGI markets, contact: +1 (914) 323 0255, emissionsdesk@evomarkets.com.