LONDON AND NEW YORK – (COMMERCIAL THREAD) – Intercontinental Exchange, Inc. (NYSE: ICE), a leading global exchange and clearinghouse operators and provider of mortgage technology, data and quotation services, today announced an update day on its global environmental complex, under the name ICE Global Carbon Futures The index value (ICECRBN) hit a record high on February 12, 2021, with a weighted average price of $ 39.08 / tonne, and options ICE EU Carbon Allowance (EUA) hit records in February for a total traded volume of over 412,000 contracts, and for the average Daily Volume (ADV) of over 20,500 contracts.
ICE provides its clients with access to the world’s largest and most liquid environmental markets and launched the Global Carbon Futures Index in April 2020 to serve as a benchmark for the global carbon price. 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 and is calculated and published in real-time in the ICE Consolidated Feed. . It is part of a suite of ESG-related services that ICE offers to its clients, which includes the ICE BofA Green Index, Carbon Reduction Indices and ICE Climate Risk, which helps investors identify the climate risk of municipal securities across the United States.
More than 14 gigatonnes of carbon were traded on ICE in 2020, of which approximately 12.2 gigatonnes via EUA futures and options, 1.9 gigatons via CCA futures and options, and 0.23 gigatonnes via forward contracts. term and RGGI options. The annual trading of carbon allowances on ICE is equivalent to approximately 40% of the total annual global emissions footprint based on current estimates.
“When ICE entered the environmental markets, they were nascent niche markets. Today, they are among the fastest growing markets in the world, providing a transparent, accessible and market-led route to assess climate risk on a global scale, ”said Gordon Bennett, Managing Director, Markets of utilities at ICE. “As climate risk and the energy transition affect more and more companies in all sectors, a wide range of solutions will be needed to help the adoption of broader and more ambitious cap and trade programs. , complemented by clearing markets that encourage investment in high quality, credible projects.
ICE has been active in the carbon offset markets since 2008, with more than 3 billion tonnes of certified emission reductions (CERs) traded on ICE since its launch. In April 2019, ICE launched California Carbon Offset (CCO) futures and approximately 1 million tonnes of CCO were traded on ICE in 2020.
Companies subject to carbon cap-and-trade programs and renewable energy portfolio standards use ICE markets to meet their obligations and manage risk in the most cost-effective manner, while policymakers use price signals from environmental markets to assess the effectiveness of their programs. Today, increasingly diverse stakeholders are using these global markets to offset their carbon footprint, invest in green attributes, compare their internal carbon cost, assess and manage climate transition risk, and allocate capital to leverage of the energy transition.
About the intercontinental exchange
Intercontinental exchange (NYSE: ICE) is a Fortune 500 company and a provider of market infrastructure, data services, and technology solutions to a wide range of clients, including financial institutions, businesses, and government entities. We operate regulated markets, including the New York Stock Exchange, for listing, trading and clearing a wide range of derivative contracts and financial securities in the main asset classes. Our complete data services The offering supports the trading, investment, risk management and connectivity needs of clients around the world and across all asset classes. As a leading technology provider to the U.S. residential mortgage industry, ICE Mortgage Technology provides the technology and infrastructure to transform and digitize residential mortgages in the United States, from loan application and 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 can be found here. The key information documents for certain products covered by the EU Retail and Insurance Investment Products Regulation can be accessed on the website of the relevant exchange 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 activities that are not historical facts are “forward-looking statements” that involve risk. and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in forward-looking statements, see documents filed by the Securities and Exchange Commission (SEC) of ICE, including, but not limited to be limited to the risk factors in ICE’s annual report. Report on Form 10-K for the fiscal year ended December 31, 2020, as filed with the SEC on February 4, 2021.
Source: Intercontinental exchange