ICE to Launch its First Nature-Based Solutions Carbon Credit Futures Contract
05 November 2021 - 11:40PM
Business Wire
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global
provider of data, technology, and market infrastructure, today
announced that it plans to launch its first Nature-Based Solutions
(NBS) carbon credit futures contract.
Subject to regulatory approvals, the new futures contract is
expected to launch in the first quarter of 2022. It will be traded
and cleared by ICE in London and will physically deliver credits
certified under Verra’s Verified Carbon Standard (VCS) and Climate,
Community and Biodiversity (CCB) Standards Programs. Each futures
contract will be equal to 1,000 eligible VCS credits with each
credit equivalent to one metric ton of greenhouse gas
emissions.
“Environmental markets can help fund the cultivation and
preservation of natural capital, and the new nature-based solutions
futures contract will allow the market to value natural assets in
the agriculture, forestry and other land use sectors,” said Gordon
Bennett, Managing Director of Utility Markets at ICE. “At ICE, our
futures market and auction platform are integral in facilitating
the flow of capital to projects that can help the world meet its
commitments to the Paris Agreement, as well as help preserve
natural assets.”
Alongside this, ICE Benchmark Administration (IBA) is forming
the ICE Carbon Oversight Committee to provide independent
governance and oversight of ICE’s activities in the voluntary
carbon markets. The Committee will advise on the criteria that
carbon credits must meet to be deliverable in ICE hosted futures
contracts. The Committee’s work will be informed by the market
principles that are being elaborated by the Taskforce on Scaling
Voluntary Carbon Markets and the Voluntary Carbon Markets Integrity
Initiative.
“Robust governance and oversight of ICE’s platforms in the
voluntary carbon markets will help give buyers confidence that
credits purchased through the futures contract have environmental
integrity”, said Tim Bowler, President of ICE Benchmark
Administration. “By providing enhanced governance and oversight,
the ICE Carbon Oversight Committee will help the environmental
markets grow and increase confidence in the quality of the credits
being bought through ICE’s marketplaces”.
ICE offers customers access to the largest and most liquid
environmental markets in the world to price climate risk. More than
14 gigatons of carbon trades on ICE annually, equivalent to
approximately 40% of the world’s total annual emissions footprint
based on current estimates.
About ICE Benchmark Administration
ICE Benchmark Administration is authorized and regulated
by the Financial Conduct Authority for the regulated activity of
administering a benchmark, and is authorized as a benchmark
administrator under the UK Benchmarks Regulation.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune
500 company that designs, builds and operates digital networks to
connect people to opportunity. We provide financial technology and
data services across major asset classes that offer our customers
access to mission-critical workflow tools that increase
transparency and operational efficiencies. We operate
exchanges, including the New York Stock Exchange, and
clearing houses that help people invest, raise capital and
manage risk across multiple asset classes. Our comprehensive fixed
income data services and execution capabilities provide
information, analytics and platforms that help our customers
capitalize on opportunities and operate more efficiently. At ICE
Mortgage Technology, we are transforming and digitizing the
U.S. residential mortgage process, from consumer engagement through
loan registration. Together, we transform, streamline and automate
industries to connect our customers to opportunity.
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.
Source: Intercontinental Exchange
ICE- CORP
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version on businesswire.com: https://www.businesswire.com/news/home/20211105005535/en/
ICE Media Contact: Rebecca Mitchell
Rebecca.Mitchell@ice.com +44 7951 057 351 ICE Investor
Contact: Mary Caroline O’Neal marycaroline.oneal@ice.com (770)
738-2151
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