June 26, 2022


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Report Quantity of Environmental Contracts Traded on ICE in 2021 Equal to an Estimated $1 Trillion in Notional Worth

AMSTERDAM & LONDON & NEW YORK– Intercontinental Trade (NYSE:ICE), a number one international supplier of knowledge, know-how, and market infrastructure, at the moment introduced {that a} report quantity of environmental contracts traded in 2021. A complete of 18 billion tons of carbon allowances traded in 2021, equal to an estimated $1 trillion in notional worth and equal to over half the world’s estimated whole annual energy-related emissions footprint.

Reflecting how firms use these markets to handle and value local weather threat, in addition to meet compliance obligations, a report 19 million environmental futures and choices contracts traded on ICE in 2021. These traded contracts included a report 15.2 billion EU carbon allowances, a report 2.4 billion California carbon allowances, 346 million Regional Greenhouse Fuel Initiative allowances and, following its launch in Could 2021, 255 million U.Ok. carbon allowances.

“For over a decade, ICE has supplied the markets with the power to cost the unfavourable externality of emissions by way of carbon allowance futures, and the optimistic externality of making carbon-free electrical energy by way of renewable power certificates (REC) futures,” mentioned Gordon Bennett, Managing Director of Utility Markets at ICE. “This 12 months we shall be increasing our carbon credit score markets to worth and help the preservation of pure property, in addition to launching our first carbon index futures contract to offer entry to the worldwide value of emissions in a single instrument.”

In October 2021, ICE invested in LevelTen Vitality, which brings larger transparency and liquidity to the renewable power trade and allows individuals to transact on energy buy agreements and bodily power property extra effectively. As well as, ICE plans to broaden its renewable power futures markets with the launch of six new U.S. REC futures on January 18, based mostly on photo voltaic and wind power. U.S. REC markets are among the many most liquid and clear inexperienced certificates obtainable. Roughly 705,000 REC futures traded on ICE in 2021, equal to an estimated 48 million megawatt hours of renewable power or sufficient to energy round 4.5 million properties for a 12 months.

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“The widespread electrification of the power system and a transition to a cleaner grid will develop into key themes in assembly internet zero targets,” continued Gordon Bennett. “We’re seeing important demand from company patrons who wish to inexperienced their energy consumption by way of renewable energy buy agreements and renewable power certificates. REC futures markets will develop into more and more vital to the method of effectively allocating capital to renewable electrical energy initiatives and managing the dangers of transitioning to a cleaner electrical energy grid.”

ICE plans to launch its first financially settled international carbon futures contract (ICE: CO2) based mostly on the ICE International Carbon Futures Index on January 31, 2022. As well as, ICE is working to launch a number of initiatives in 2022 to additional help the event of carbon credit score markets globally. This consists of launching ICE’s first Nature-Based mostly Options futures contract, topic to regulatory approval; its first carbon credit score auctions for Permian International, a developer of large-scale tropical forest safety and restoration initiatives; and forming the ICE Carbon Oversight Committee to offer impartial governance and oversight of ICE’s actions within the voluntary carbon markets.

ICE provides clients entry to the biggest and most liquid environmental markets on this planet to cost local weather threat.