- CFP Energy executes the inaugural EEX EU ETS2 futures trade, marking a critical market milestone.
- The deal marks the first forward hedging opportunity in the EU’s new emissions trading scheme for buildings and transport.
- ETS2 goes live in 2027, but futures trading now gives businesses a critical early compliance edge.
CFP Energy, a leading specialist in environmental risk management solutions, today announced its pivotal role in the inaugural trade of the new EU Emissions Trading System 2 (EU ETS2) futures contracts on the European Energy Exchange (EEX). This significant transaction, concluded on the first day of availability between Macquarie and CFP Energy, and brokered by Tradition, marks a crucial step in the development of a vital new carbon market.
The EU ETS2, anticipated to become fully operational in January 2027, will extend carbon pricing to emissions from buildings and road transport, alongside other sectors. The launch of these futures contracts allows companies to proactively hedge their exposure well in advance of the scheme's primary auction, providing essential tools for risk management and compliance in these emerging sectors.
Tim Atkinson, Head of Carbon at CFP Energy, comments:
“CFP Energy is proud to have participated in the first EEX-hosted trade in the new ETS2 carbon market. While still in its early stages, the development of this market is vital — enabling us to support fuel suppliers and end users with robust compliance and risk management strategies under this emerging scheme. This milestone represents a significant step forward for CFP Energy, building on more than 15 years of active involvement and proven expertise in the EU ETS and broader carbon markets.”
Patrick Rodzki, Vice President within Macquarie’s Commodities and Global Markets business, comments:
“Macquarie is pleased to have participated in the first trade of EU ETS 2 futures on the European Energy Exchange. This milestone reflects our commitment to supporting clients by using our expertise to help them navigate the EU ETS 2 scheme. With our global experience in environmental markets, we assist clients in managing risks and identifying opportunities within this important sector.”
John Molloy, Head of Environmental Products at Tradition Energy and Commodities, comments: “We are delighted to have brokered the first ever ETS2 EEX cleared trade, vintage Dec 2028, and look forward to developing and supporting further opportunities in this trading space.”
Alex Lewis, Managing Director at Tradition Energy and Commodities, adds: “This supports our commitment in the ongoing development of the carbon market and we are pleased to remain at the forefront as it continues to further evolve.”
Pioneering Risk Management in New Carbon Frontiers
CFP Energy's participation in this landmark trade underscores its commitment to staying at the forefront of evolving environmental markets. The introduction of EU ETS2 presents new compliance challenges and opportunities for a broad range of businesses not previously covered by carbon pricing.
By engaging in these early futures trades, CFP Energy is helping to lay the groundwork for transparent and liquid markets essential for effective risk management.
The new contract suite by EEX comprises December and April maturities for the first three years of the scheme, with the first expiry set for December 2027. These futures contracts are accessible through both order book trading and trade registration.
The Importance of ETS2 for Decarbonisation
The EU ETS2 is a cornerstone of Europe's decarbonisation efforts, designed to drive emissions reductions in sectors crucial for achieving climate targets. The early establishment of a robust futures market is paramount for companies to:
- Understand price signals: Gain early insight into future carbon costs to inform investment decisions.
- Manage volatility: Hedge against potential price fluctuations in a new and developing market.
- Ensure compliance: Develop proactive strategies to meet future regulatory obligations.
CFP Energy's deep experience in navigating complex environmental markets positions it as a key partner for businesses seeking to understand and mitigate risks associated with the expanding scope of carbon regulations.
