JREDD+ carbon offset futures contracts are part of the voluntary carbon market, providing a mechanism for the trading of carbon offset credits.

 

These futures contracts allow for the delivery of carbon offset credits that meet specific criteria, specifically those from projects that reduce emissions from deforestation and forest degradation (REDD+). They aim to standardize and improve the transparency of pricing for carbon offsets, facilitating risk management for companies engaging in nature-based carbon offsetting as part of their climate strategies.

 

The contracts support projects that protect or restore natural ecosystems, thus removing greenhouse gases from the atmosphere, while also aiming to support local communities and biodiversity through adherence to Verra's Climate, Community, & Biodiversity (CCB) Standards.

 

Rule Chapter	700
Contract	JREDD+ Carbon Offset Unit Futures
Product ID/Commodity Code	RD1
Contract Unit and Delivery Unit	100 tCO2e of Eligible REDD+ Carbon Offsets
Unit of Measure	tCO2e
Trading Hours (All time Singapore)	Monday through Friday Pre-open session: 0930 hrs to 1000 hrs Normal Market Session: 1000 hrs to 2400 hrs
Minimum Price Movement	USD 0.01 per tCO2e
Listed Contracts	Up to 14 contracts (comprising at least three December contracts and any number of serial (non-rolling) monthly contracts for January through November.
Settlement Method	Physical Delivery
Termination of Trading/Last Trading Day	The second  Business Day preceding the Delivery Date
Delivery Dates	The first Business Day of the Contract Month that is not preceded by a US bank holiday, else it will be the next Business Day that is not preceded by a US bank holiday.
Reportable Level	25 Lots
Position Limits (Spot Month)	1,000 Lots
Position Accountability Levels (any/all month)	5,000 Lots
Price Limits	Fixed price limits which will be published via circulars
Block Trade Minimum	5
Final Settlement Price	Price determined by the Exchange on the Last Trading Day. The Final Settlement Price is the basis for delivery.
Settlement Price Period	Daily Settlement Price: 2225-2230 hrs SGT Final Settlement Price: 2200-2230 hrs SGT