Secondary Markets
Last updated
Last updated
Most secondary market activities are executed in carbon credit exchanges. Most carbon exchanges only allow corporates and high net worth individuals (sophisticated investors) to open an account with the exchange. These requirements are either directly stated or indirectly stated by applying measures such as a high annual account membership fee, a minimum standard trading lot and carbon offset/retirement size ranging from 100 to 1,000 tCO2e, and a high transaction fee (around 5%).
The most active carbon credit exchanges are Carbon Trade Xchange, Aircarbon, and CBL-Xpansiv.
Just like the primary markets, the trading activities (prices & volumes) are generally not reported.
Apart from the pure carbon credits exchanges, there are regulated exchanges like EEX & ICE that creates futures contract on carbon credits with physical delivery. These futures contracts are usually for regulated carbon credits. Since these are regulated exchanges prices and volume traded are available publicly. The largest and most liquid futures contract is on the EUA (EU Allowance).