CIX to Launch Improved Cookstoves Benchmark Contracts

Climate Impact X (CIX), the Singapore headquartered global marketplace, auctions house and exchange for trusted carbon credits, has unveiled plans to launch a new series of improved cookstoves benchmarks for the voluntary carbon market (VCM) in the coming months.

CIX Cookstoves X, which will trade under the contract code ‘CCX’ on CIX Exchange, is a set of global standardised spot contracts designed to facilitate trading and capture price trends from key corners of the market.

Available at launch are four contracts segmented by project location and registry – specifically, projects in the Least Developed Countries (LDCs) or Developing Countries that have been verified by either Gold Standard or Verra.

According to the World Health Organisation, a third of the global population remain without access to clean cooking. As well as contributing to global emissions and indoor smoke pollution, traditional cooking methods put pressure on existing forest stocks.

Designed following broad industry consultation, CIX Cookstoves X contracts aim to help address some of these challenges by streamlining the market through contract standardisation, liquidity concentration and the delivery of transparent market-driven price benchmarks. Collectively, the four contracts cover the vast majority of the cookstoves market.

Tom Enger, Head of Product at CIX, said: “Contract standardisation can help build trust through greater certainty in the projects delivered, while sharpening the valuation of comparable registry crediting schemes and location attributes. CIX Cookstoves X has been curated for fungibility to help project developers, investors, trading houses and end-users de-risk the buying and selling of cookstoves credits. This is essential to unlock the liquidity needed to scale this important market for all those positively impacted.”

To generate sharper market prices, CIX will bring a first-of-a-kind on-exchange spot pricing session for cookstoves credits that concentrates trading activity within a weekly 30-minute window.

Credits eligible for delivery into CIX Cookstoves X contracts are issued within a fixed four-year vintage range, starting at launch with vintages 2020-2023. New contracts are created each year on the first working day of January, reflecting the most recent four-year vintage range.