Voluntary Carbon Markets
There is an overlapping of roles that is specific to carbon markets.
Many brokers act as traders, and many financiers have both brokering arms and project development arms. All these groups may ultimately market credits to a buyer, or a developer may arrange to sell them direct. All these juxtapositions can have an impact on price, and ultimately affect market transparency.
While most of the transactions are currently happening in private conversations and over-the-counter deals, some exchanges are also emerging. Often, the exchanges are used to settle large bilateral deals that have been negotiated offscreen.
In a market note released May 7, Xsignals, a data company owned by CBL exchange operator Xpansiv, said that ever larger numbers of bilateral deals negotiated offscreen are being brought by traders on the CBL platform to be settled. These deals make up a significant portion of recent volume transacted on CBL.
