ICE Announces Update on Global Environmental Complex as the ICE Global Carbon Futures Idx Hits Record High & EUA Options Reac...
06 March 2021 - 12:00AM
Business Wire
Global Carbon Futures Index serves as a
benchmark for the global price of carbon
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator
of global exchanges and clearing houses and provider of mortgage
technology, data and listings services, today announced an update
on its global environmental complex, as the ICE Global Carbon
Futures Index value (ICECRBN) reached a record on February 12,
2021, with a weighted average price of $39.08/tonne, and ICE EU
Carbon Allowance (EUA) Options reached records in February for
total volume traded of more than 412,000 contracts, and for Average
Daily Volume (ADV) of more than 20,500 contracts.
ICE offers customers access to the largest and most liquid
environmental markets in the world and launched the Global Carbon
Futures Index in April 2020 to serve as a benchmark for the global
price of carbon. The Index measures the performance of a long-only
basket of ICE EUA futures, ICE California Carbon Allowance (CCA)
futures, and ICE Regional Greenhouse Gas Initiative (RGGI) futures
contracts and is calculated and published in real-time to the ICE
Consolidated Feed. It is part of a suite of ESG-related services
ICE offers to customers, which includes the ICE BofA Green Index,
Carbon Reduction Indices, and ICE Climate Risk, which helps
investors identify the climate risk in municipal securities across
the United States.
More than 14 gigatonnes of carbon were traded on ICE during
2020, including approximately 12.2 gigatonnes through EUA Futures
and Options, 1.9 gigatonnes through CCA Futures and Options, and
0.23 Gigatonnes through RGGI futures and options. Annual carbon
allowance trading on ICE is equivalent to approximately 40% of the
world’s total annual emissions footprint based on current
estimates.
“When ICE first entered the environmental markets, these were
nascent, niche markets. Today they are among the fastest growing
markets globally, offering a transparent, accessible and market-led
route for the world to price climate risk on a global scale”, said
Gordon Bennett, Managing Director of Utility Markets at ICE. “As
climate risk and the energy transition impacts more and more
companies regardless of sector, a broad set of solutions will be
required to help the adoption of wider and more ambitious cap and
trade programmes, complemented by offset markets which encourage
investment in high quality, credible projects.”
ICE has been active in carbon offset markets since 2008, with
more than 3 billion tonnes of Certified Emission Reductions (CERs)
traded on ICE since launch. In April 2019, ICE launched California
Carbon Offset (CCO) futures and approximately 1 million tonnes of
CCOs traded on ICE in 2020.
Companies subject to carbon cap and trade programs and renewable
portfolio standards use ICE’s markets to meet obligations and
manage risk in the most cost-effective way, while policy makers
rely on price signals from environmental markets to gauge the
effectiveness of their programs. Today increasingly diverse
stakeholders use these global markets to offset their carbon
footprint, invest in green attributes, benchmark their internal
cost of carbon, assess and manage climate transition risk, and
allocate capital to benefit from energy transition.
About Intercontinental Exchange
Intercontinental Exchange
(NYSE: ICE) is a Fortune 500 company and provider of marketplace
infrastructure, data services and technology solutions to a broad
range of customers including financial institutions, corporations
and government entities. We operate regulated marketplaces, including the New York Stock Exchange, for the listing,
trading and clearing of a broad
array of derivatives contracts and financial securities across
major asset classes. Our comprehensive data services offering supports the
trading, investment, risk management and connectivity needs of
customers around the world and across asset classes. As a leading
technology provider for the U.S. residential mortgage industry,
ICE Mortgage Technology
provides the technology and infrastructure to transform and
digitize U.S. residential mortgages, from application and loan
origination through to final settlement.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual
property rights of Intercontinental Exchange, Inc. and/or its
affiliates is located here. Key
Information Documents for certain products covered by the EU
Packaged Retail and Insurance-based Investment Products Regulation
can be accessed on the relevant exchange website under the heading
“Key Information Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 -- Statements in this press release regarding
ICE's business that are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion
of additional risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking
statements, see ICE's Securities and Exchange Commission (SEC)
filings, including, but not limited to, the risk factors in ICE's
Annual Report on Form 10-K for the year ended December 31, 2020, as
filed with the SEC on February 4, 2021.
ICE- CORP Source: Intercontinental Exchange
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ICE Media Contact: Rebecca Mitchell Rebecca.Mitchell@theice.com +44 7951 057
351
ICE Investor Contact: Warren Gardiner Warren.Gardiner@theice.com 770-835-0114
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