Climate Impact X (CIX), a carbon trading company, has taken a significant step in its broader expansion strategy by introducing its first carbon removal contracts. This new development contributes to the diversification of CIX’s carbon credit product range, supporting the global effort to limit climate change.
The launch of the carbon removal contracts took place on the Singapore Exchange (SGX), which actively supported the venue for this initiative. CIX, headquartered in Singapore, has been instrumental in introducing standardized contracts for nature-based carbon removal credits. These credits focus on afforestation, reforestation, and revegetation (ARR) markets – critical components in the fight against global warming.
The first carbon removal contract series on the CIX Exchange includes two tradeable contracts: CIX ARR X (CAX) and CIX ARR X – China (CAX-C). These contracts are poised to be game-changers in the carbon trading landscape, providing more opportunities for entities to offset their carbon footprints.
By the close of trading on April 4, a notable 10,000 tons of carbon credits had been traded and cleared on CIX ARR X contracts. This robust trading activity underscores the market’s recognition of the importance of carbon removal strategies.
The Intergovernmental Panel on Climate Change (IPCC) has repeatedly asserted that limiting global warming to 1.5°C is contingent on the use of carbon removals. Among the myriad of solutions available, ARR projects form the bulk of these, further highlighting the significance of CIX’s new carbon removal contracts.
In a bid to create more efficient and transparent market prices, CIX will utilize its on-exchange spot pricing session to concentrate ARR trading activity within a weekly 30-minute window every Thursday. This strategic move is expected to enhance market visibility and foster robust trading activity, making a significant contribution to the global fight against climate change.
Overall, CIX’s introduction of carbon removal contracts marks a crucial advancement in carbon trading. It not only expands the carbon credit product range but also facilitates the necessary carbon removals to limit global warming to 1.5°C as advocated by the IPCC.
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