Market remains optimistic after another turbulent year
Environmental markets service providers navigated political uncertainty in 2024, impacting prices and trading, writes Rob Langston
Policy uncertainty and the politicisation of environmental challenges had a significant impact on prices during 2024, according to the winners of Environmental Market Rankings.
While many countries, particularly in the Asia-Pacific region, have pushed forward with their own compliance carbon markets, partly in response to the EU's Carbon Border Adjustment Mechanism (CBAM), while legal challenges in the US stalled progress in North America.
Meanwhile, ongoing speculation about the convergence of the UK and EU emissions trading systems (ETS) have stoked prices in two of the most established markets.
Nevertheless, market participants – who are no strangers to such volatility and uncertainty – saw signs for optimism, as progress continues on several fronts and hope for more stability around pricing as interim decarbonisation targets approach.
Meanwhile, demand for green certificates is set to be boosted by technology giants' growing thirst for renewable and low-carbon energy to help fuel the boom in AI.
This could help sustain voluntary markets, even as regulated markets brace for headwinds from President Donald Trump's assault on renewables, they argue.
Once again, the Environmental Market Rankings received hundreds of votes from market participants highlighting the companies providing the best services in the compliance carbon markets and green certificates.
Netherlands-based STX Group topped the leaderboard in this year's rankings, after being named as top provider in 14 categories for both markets, a significant increase on the nine it won in 2023-2024 rankings. (See table below). It was named top provider in seven compliance carbon markets categories, including three won by STX Group company Vertis Environmental Finance. It also emerged as readers' favourite in seven of the green certificates categories.
Slipping slightly from last year's showing, US-based Karbone topped seven categories, down from the nine it won in 2023-2024. Four of its awards came from the North American compliance carbon markets, while picking up three in the green certificates.
Anew Climate completed the top-three providers from this year's awards, winning six categories spread equally across compliance and green certificates. This year's haul matches its showing last year.
Rounding out the top-five providers, were ClearBlue Markets and ICE with three awards each.
COMPLIANCE CARBON MARKETS | ||
---|---|---|
EU EMISSIONS TRADING SYSTEM | ||
Category | Winner | Runner up |
Best broker, options & futures | Evolution Markets | Vertis |
Best trading company, options & futures | Vertis | CFP Energy |
Best broker, OTC/spot | Vertis | Evolution Markets |
Best trading company, OTC/spot | CFP Energy | Vertis |
Best advisory/consultancy | ClearBlue Markets | Redshaw Advisors |
Best exchange/clearing house | ICE | |
UK EMISSIONS TRADING SYSTEM | ||
Category | Winner | Runner-up |
Best broker, OTC/spot | Vertis | Redshaw Advisors |
Best trading company, OTC/spot | CFP Energy | Vertis |
Best advisory/consultancy | Redshaw Advisors | ClearBlue |
NORTH AMERICAN MARKETS (California) | ||
Category | Winner | Runner-up |
Best broker, options & futures | Karbone | Evolution Markets |
Best trading company, options & futures | STX Group | Anew |
Best broker, OTC/spot | Karbone | STX Group, Anew |
Best trading company, OTC/spot | STX Group | Anew, Karbone |
Best project developer | Anew | ClearBlue |
Best advisory/consultancy | ClearBlue Markets | Karbone, Anew |
NORTH AMERICAN MARKETS (RGGI) | ||
Category | Winner | Runner-up |
Best broker | Karbone | Evolution Markets |
Best trading company | Anew | STX Group |
NORTH AMERICAN MARKETS (All - includes Canada and Mexico) | ||
Category | Winner | Runner-up |
Best broker | Karbone | Evolution Markets |
Best trading company | STX Group | Anew |
Best advisory/consultancy | ClearBlue Markets | STX Group |
Best verification company | First Environment | |
Best project developer | Anew | ClearBlue |
APAC MARKETS | ||
Category | Winner | Runner-up |
Best broker | CORE Markets | STX Group |
Best trading company | STX Group | 3Degrees |
Best advisory/consultancy | Kanaka | CORE Markets |
Best verification company | EPIC Sustainability Services | |
Best project developer | Kanaka | STX Group |
In compliance carbon markets, one of the big winners in the EU and UK ETS categories was Vertis Environmental Finance, an STX Group company, which topped the rankings in three different categories, up from one last year. It was named Best trading company, options & futures and Best broker, OTC/spot for the EU ETS and Best broker, OTC/spot for the UK ETS.
CFP Energy was named Best trading company, OTC/spot for both the EU ETS and UK ETS, and was a runner-up in the Best trading company, options & futures for the EU market.
Evolution Markets was named Best broker, options & futures in the EU carbon markets, but was unable to equal last year's haul of three awards.
ClearBlue Markets was voted Best advisory/consultancy in the EU ETS and was runner up for the UK. It was also named Best advisory/consultancy for California and North America markets overall.
Karbone was one of the standout winners in the North American markets taking four awards Best broker, options & futures and Best broker OTC/spot in California, and was also named Best broker for RGGI and North American markets overall (including Canada and Mexico). It was also named runner-up in several categories.
Another multiple winner was Anew Climate, which won three awards, including Best project developer in California and North American markets overall, and Best trading company for RGGI. It was runner-up in several other categories.
STX Group topped the polls as Best trading company, options & futures and Best trading company, OTC/spot in California, while also being named Best trading company for North American markets overall.
Elsewhere, ClearBlue Markets was voted Best advisory/consultancy for California and North American markets overall. It was also a runner-up in several categories.
Meanwhile, First Environment was chosen as North American markets Best verification company returning to the rankings after last winning the top spot in 2022.
In Asia-Pacific, there was a return to the rankings by Kanaka Management Services, which last featured in 2022. It topped two categories in this year's rankings after being voted Best advisory/consultancy and Best project developer.
Both CORE Markets and EPIC Sustainability Services retained their positions as Best broker and Best verification company respectively. STX Group topped the poll as the region's Best trading company and was a runner up in several other categories.
GREEN CERTIFICATES | ||
---|---|---|
ENERGY ATTRIBUTE CERTIFICATES - EUROPE | ||
Category | Winner | Runner-up |
Best broker | STX Group | Redshaw Advisors |
Best trading company | STX Group | CFP Energy |
Best advisory | STX Group | Redshaw Advisors, Karbone |
Best exchange/clearing house | ICE | |
ENERGY ATTRIBUTE CERTIFICATES - NORTH AMERICA | ||
Category | Winner | Runner-up |
Best broker | Karbone | STX Group |
Best trading company | STX Group | Anew |
Best advisory | Anew | Karbone |
Best exchange/clearing house | ICE | |
ENERGY ATTRIBUTE CERTIFICATES - APAC | ||
Category | Winner | Runner-up |
Best broker | CORE Markets | STX Group |
Best trading company | STX Group | |
RENEWABLE IDENTIFICATION NUMBERS MARKET | ||
Category | Winner | Runner-up |
Best broker | Karbone | STX Group |
Best trading company | STX Group | Anew |
Best advisory/consultancy | Anew | Karbone |
Best verification company | EcoEngineers | |
RENEWABLE NATURAL GAS MARKET | ||
Category | Winner | Runner-up |
Best broker | Karbone | |
Best trading company | STX Group | Anew |
Best advisory/consultancy | Anew | STX Group |
Best verification company | Weaver |
STX Group also had a strong showing in the Renewable Energy Certificates rankings, as it was voted the best provider in seven categories.
It dominated the European market, winning three out of four categories, including Best broker, Best trading company and Best advisory. It was also named Best trading company in North America and APAC, and in the Renewable Identification Numbers and renewable natural gas markets. It was also named a runner-up in several other categories.
Karbone three categories in this year's certificates rankings, including Best broker for North America, and in the Renewable Identification Numbers and renewable natural gas markets.
Anew Climate topped the rankings as Best advisory in North America and Best advisory/consultancy in the Renewable Identification Numbers and renewable natural gas markets.
ICE was named Best exchange/clearing house for Europe and North America, while EcoEngineers and Weaver were readers' Best verification company for the Renewable Identification Numbers and renewable natural gas markets respectively.
Environmental Finance would like to congratulate to all this year's winners and runners-up.
How the rankings were conducted
Companies were emailed in November 2024 and asked to nominate the leading traders, brokers, and service providers in the markets covering carbon emissions and green certificates, via an online survey.
They were asked to vote only in those categories in which they had direct experience and to make their judgements based on efficiency and speed of transaction; reliability; innovation; quality of information and services provided; and influence on the market, not just the volume of transactions handled.
Around 1,000 completed responses were received. Only one vote per company site was allowed and those firms that nominated themselves had their votes disregarded.