Global Emissions Market Access (GEMA)

A new asset class that is a breath of fresh air!

Global Emissions Market Access (GEMA) introduces a brand new asset class for Clearstream: carbon emission rights. This innovative product enables carbon rights to be settled and held in your existing Clearstream accounts.

GEMA makes carbon right settlement easy for you. It delivers a single entry to multiple carbon registries plus access to the carbon holdings of many of the most active financial institutions in the carbon market. And GEMA is supported through your existing Clearstream connectivity solutions.

Two types of rights

Two types of carbon emission rights represent more than 90% of worldwide SPOT carbon trading volumes: European Union Allowances (EUA) and Certified Emission Reduction rights (CER). Both are eligible in GEMA.

The EUAs and the CERs are treated as securities in the Clearstream system. This allows GEMA customers to include their carbon holding into existing securities servicing without having to invest in dedicated back-office functions.

GEMA enables you to:

• settle carbon against payment and 'true' DVP with other GEMA participants
• rely on existing cash liquidity arrangements in Clearstream
• have familiar tools and formats (e.g. identification codes similar to XS ISIN)
• avoid the costs of developing own custody and settlement infrastructure
• avoid operational risk by relying on Clearstream’s book-entry settlement system
• have consolidated statements of holding for different carbon registries.

For more information on GEMA please consult the documents attached below. Should you require any additional information please contact your relationship manager or William Moran, Carbon Market Manager.