ICE Expands Environmental Complex with the Launch of a Global Carbon Futures Index Contract
01 December 2021 - 12:00AM
Business Wire
Intercontinental Exchange (NYSE:ICE), a leading global provider
of data, technology, and market infrastructure, today announced
that it plans to launch a futures contract based on the ICE Global
Carbon Futures Index (ICE: CO2). The new futures contract is
designed to offer the market a way to access and hedge a global
price for carbon and is expected to launch in early 2022, subject
to regulatory approval.
Additionally, following an index consultation and resulting
methodology update, ICE UK Allowance futures (UKA futures) are
expected to be added to the ICE Global Carbon Futures Index in
January 2022, making it more reflective of global carbon markets.
Following this, the index and the new futures contract will allow
market participants to access a basket of four of the world’s
largest and most liquid carbon futures markets: the ICE European
Union Allowances (EUA); the ICE California Carbon Allowances (CCA);
the ICE UK Allowances (UKA); and the ICE Regional Greenhouse Gas
Initiative CO2 Allowances (RGGI).
“As businesses continue to adapt to the challenges and
opportunities presented by net zero, we are likely to see
increasing adoption of tools to value positive and negative
externalities,” said Gordon Bennett, Managing Director of Utility
Markets at ICE. “Carbon cap and trade programmes work to control
the quantity of emissions and are one of the most effective means
to price the negative externality of pollution by incentivizing the
reduction of emissions. Our Global Carbon Futures Index contract
allows market participants to gain exposure to the cost of
emissions across the four largest cap and trade futures markets in
the world, in one tradable instrument."
The ICE Global Carbon Futures Index, which launched in April
2020, serves as a benchmark for the performance of carbon allowance
prices. The index 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
Bond Index, ICE Global Government Carbon Reduction Indices, and ICE
Climate Risk, which helps investors identify the climate risk in
municipal securities across the United States.
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.
For more information on how to trade and clear these markets
please visit https://www.theice.com/energy/environmental, read our
FAQs or contact sales-utilities@ice.com.
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.
ICE- CORP
Source: Intercontinental Exchange
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version on businesswire.com: https://www.businesswire.com/news/home/20211130005649/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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