Announcement of Macao International Carbon Emission Exchange on the Launch of CCP-Labelled Carbon Credits Spot Contract (CCP-X)

To further enhance the liquidity and transparency of the voluntary carbon market, and to reduce the due diligence costs for market participants, the Macao International Carbon Emission Exchange (hereinafter referred to as "MEX") has decided to officially launch standardized spot contracts for carbon credits based on the "Core Carbon Principles (CCP)" label, effective Monday, July 6, 2026. The relevant trading arrangements are announced as follows:

I. First Batch of Listed Contracts and Codes

The first batch of listed CCP spot contracts adopts an "Asset Pool" model, categorized into two major classes based on the underlying technical logic of the emission reduction projects:

● Nature-Based Project Contract [MEX-CCP-NBS (2022–2025)]: Includes CCP-labeled projects such as Afforestation, Reforestation (ARR), and Improved Forest Management (IFM).

● Technology-Based Project Contract [MEX-CCP-TEC (2022–2025)]: Includes CCP-labeled projects such as Biochar, Methane Capture, and High-Efficiency Cookstoves.

Note: The "(2022–2025)" at the end of the code represents the issuance year (vintage) of the underlying assets.

II. Asset Admission Criteria

All carbon credits entering the delivery pool of the aforementioned contracts must simultaneously satisfy the following conditions:

1. Issued by an eligible issuing body (such as VCS, GS, etc.) evaluated and approved by the Integrity Council for the Voluntary Carbon Market (ICVCM).

2. Approved under eligible methodologies authorized by the ICVCM.

3. At the time of delivery, the underlying asset must be active in its respective registry and clearly carry the "CCP" label.

4. Meet the requirements for CCP-X stipulated by the SCM Standard Carbon Offset Market Instruments Program.

III. Trading and Delivery Arrangements

Overview of Key Elements of CCP-X Spot Contracts

IV. Risk Control and Dynamic Adjustment Mechanism

The MEX system has achieved data interoperability with major international registries. If the ICVCM suspends or revokes the CCP qualification of a specific methodology, the system will stop allowing new assets of that category into the pool. For existing inventory assets, the exchange will perform downgrades or divestment procedures.

Members are requested to log in to https://trading.maceex.com/tradesite#/login to conduct trading activities. Other interested investors or enterprises, please open an account according to the account opening guidelines, which can be found at https://www.maceex.com/guide .

For more details, please visit the official website of MEX or email service@maceex.com.

It is hereby announced.

Macao International Carbon Emission Exchange

Market Q&A: Why did MEX choose the CCP label as the benchmark asset for voluntary emission reduction contracts?

As international climate governance enters deep waters, the voluntary carbon market is undergoing a transition from quantity to quality. MEX's launch of CCP-X on pragmatic considerations of current market pain points. Below are explanations for core questions:

Q1: What is the CCP label? What core problem does it solve?

A: CCP (Core Carbon Principles) is a globally unified high-integrity standard established by the Integrity Council for the Voluntary Carbon Market (ICVCM). Over the past few years, the biggest challenge facing the voluntary carbon market has been the risk of "greenwashing"—meaning the authenticity, additionality, and permanence of emission reduction projects have been called into question.

The CCP provides a rigorous set of independent review benchmarks. When a carbon credit receives the CCP label, it means its underlying issuing body and project methodology have passed internationally recognized stress tests. For the exchange, the CCP label serves as the infrastructure to filter out low-quality assets and rebuild market trust.

Q2: Why use Asset Pool categorized contracts (NBS/TEC) instead of listing single projects for independent trading?

A: Listing single projects leads to severe liquidity fragmentation. There are tens of thousands of carbon credit projects globally, leaving buyers facing extremely high screening and pricing costs.

By adopting the "Asset Pool" model, as long as the underlying assets meet the baseline requirements of "CCP label + designated category + restricted vintage," they can be traded as standardized products. While insulating against the risk of sudden failures from any single project, this greatly improves capital efficiency and price discovery accuracy. Separating them into "Nature-Based (NBS)" and "Technology-Based (TEC)" respects the objective differences in development costs and market premiums between these two technical pathways.

Q3: If ICVCM rules change and a project loses its CCP label, how does the exchange protect the buyers rights?

A: This is a crucial risk management issue. CCP standards iterate dynamically. The MEX smart contract system regularly synchronizes with the ICVCM compliance database.

If a methodology is stripped of its CCP label:

● Restricted Admission: The system will immediately reject requests for new asset deposits of this type.

● Asset Downgrade: Existing affected assets within the pool will be forcibly divested from the main CCP contract, transferred to the regular voluntary emission reduction series, or directed into a specific liquidation channel. This ensures that every lot of assets in the main CCP contract possesses absolute compliance at delivery.

Q4: What is the practical commercial value of trading CCP contracts for corporate buyers?

A: The most direct value is a substantial reduction in compliance and due diligence costs.

As international supply chain requirements become increasingly strict and mechanisms related to Article 6 of the Paris Agreement advance, companies using low-quality carbon credits for carbon neutrality claims face immense reputational risk. By directly purchasing standardized contracts pegged to the CCP label, corporate management can obtain emission reductions that comply with major international standards without needing to audit hundreds of pages of individual Project Design Documents (PDD). Furthermore, the standardized financial attributes make it easier for companies to conduct clearer carbon asset accounting and valuation on their balance sheets.