The NSSMC familiarized itself with the principles of operation of «green» commodity markets

In October, experts of the National Securities and Stock Market Commission (NSSMC) made a study tour to Belgium and the Netherlands. During the visit, they exchanged experience with their European colleagues, in particular, they got acquainted with European standards, best practices in green market development and standardization, including green guarantees of origin (GOO).

Lies Switten, Secretary General of the Association of Issuing Bodies, explained to the NSSMC delegation how the provision of guarantees of origin is organized in Europe, how they are registered, transferred and how registers in different EU countries work in general.

The delegation also learned about other green certificates used in the European regulatory ecosystem. During a meeting with traders from AFS Group B.V., a leading European broker and trader of green certificates, the NSSMC learned how green certificates, including those provided under voluntary certification schemes, are valued in Europe and how these certificates are traded.

Bert den Ouden, Director of HyXchange (Hydrogen Exchange Initiative), told the NSSMC about the experience of implementing a hydrogen pricing project that covers different forms of hydrogen. The main topic of the meeting was the launch of the HYCLICX price indicator, the way to develop price benchmarks was outlined, and the delegation discussed the features of modeling the hydrogen spot market.

Also during the study visit, the Ukrainian delegation of the NSSMC learned about the benefits of approving the I-REC standard, presented by the Director of the International REC Standard Foundation (I-REC Standard).

«The green market is one of the most promising and sustainable areas in the world. Despite everything, Ukraine is confidently moving towards developed commodity markets, implementing the best European practices today. This also applies to green instruments and their standards. I hope that soon we will have green steel and green fertilizers, and with them emissions trading on the stock exchange. Our European colleagues support our endeavors and provide high-quality professional expertise that forms the basis of the NSSMC’s key projects», said Arsen Ilin, Commissioner.

«We believe that the rapid development of international green standards will bring significant benefits to Ukraine and Europe. Ukrainian experts were shown different approaches to green market development and standardization. Now, Ukrainian decision-makers must quickly implement standards to fully utilize the potential of green molecules and integrate into the European market», said Dr. Jan Haismann, EU Project Leader of the «Assistance to the National Securities and Stock Market Commission (NSSMC) in improvement of Ukraine’s energy commodity markets and commodity products organized trading in Ukraine».

The study visit of the NSSMC delegation to Belgium and the Netherlands took place within the framework of the EU project «Assistance to the National Securities and Stock Market Commission (NSSMC) in improvement of Ukraine’s energy commodity markets and commodity products organized trading in Ukraine».

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The EU project «Assistance to the National Securities and Stock Market Commission (NSSMC) in improvement of Ukraine’s energy commodity markets and commodity products organized trading in Ukraine» was launched in Ukraine in April 2021 and will last until May 2024.

The aim of the project is to assist the NSSMC in strengthening the regulatory framework, ensuring the development of commodity market instruments, ensuring interaction between regulators and methods of commodity market supervision, taking into account European and international standards and best practices.

This project is funded by the EU and implemented by a consortium led by PwC EU Services with the participation of Correggio Consulting, Integrites, and Kantor Management Consultants.