Intercontinental Exchange, Inc. (NYSE:ICE), a leading global
provider of data, technology, and market infrastructure, today
announced that it has launched a Nature-Based Solutions carbon
credit futures contract (“NBS future”).
The NBS future, which trades under the contract code NBT,
physically delivers Verified Carbon Unit (VCU) credits certified
under Verra’s Verified Carbon Standard (VCS) Agriculture, Forestry
and Other Land Use (AFOLU) Projects with Climate, Community and
Biodiversity (CCB) Certification, with vintages between January 1,
2016, to December 31, 2020.
Each NBS futures contract is equal to 1,000 carbon credits,
where each credit is equal to the removal or reduction of one
metric ton of greenhouse gas emissions achieved by projects that
preserve and maintain natural ecosystems. ICE has listed NBS
futures expiries in December 2022, December 2023, and December
2024.
Participants supporting the contract include Chevron Products
Company, a division of Chevron U.S.A. Inc., EDF Trading, Elbow
River Marketing Ltd. a fully owned Parkland Fuel subsidiary, the
Macquarie Group, Shell, Trafigura, Vertree Partners and Vitol.
“The launch of ICE’s Nature-Based Carbon Futures contract is a
significant foundational development in the architecture of global
carbon markets, helping to deliver transparency and liquidity for
quality nature-based solutions,” said Hannah Hauman, Global Head of
Carbon Trading for Trafigura. “The new contract in particular
delivers a direct link to Paris-aligned compliance periods,
preparing for the next stage of market development as countries
operationalize Article 6.”
“Carbon credits have a complementary role to play in the energy
transition, but quality assurance is key,” said Michael Curran,
Head of Carbon and Environmental Products at Vitol. “We very much
welcome the launch of ICE’s NBS futures contract which will
facilitate investment in verified carbon mitigating projects and
should raise standards and price transparency across the carbon
credit-industry.”
“The launch of the ICE Nature-Based Solutions Carbon Credit
Future is another important milestone in bringing more transparency
and scale to the voluntary carbon market,” said Bill McGrath,
Shell’s General Manager for Global Environmental Products. “Carbon
credits have an important role in the journey to net zero and
innovative market-based mechanisms like this will encourage the
flow of capital for the development of nature-based projects.”
“We are excited and supportive of the increasing adoption of the
voluntary carbon credit market across the globe. ICE delivers a
thoughtful approach to an exchange product that will provide
liquidity for this emerging market,” said Elbow River Marketing
Ltd., a fully owned Parkland Fuel subsidiary.
“The NBS future is our first contract specifically designed to
measure the carbon sequestration and storage capabilities of
nature, which we hope will be an important valuation tool to
conserve and grow the world’s natural capital base,” said Gordon
Bennett, Managing Director of Utility Markets at ICE. “ICE’s
environmental markets are instrumental in providing price signals
for negative and positive externalities, incentivizing the
efficient allocation of capital across the carbon cycle to balance
the world’s carbon budget and meet the goals of net zero, providing
the mitigation pathway to manage climate risk.”
ICE has operated environmental markets for almost two decades.
During this time, over 100 billion tons of carbon allowances, over
250 million renewable energy certificates, three billion carbon
credits, and the equivalent of over 1.4 billion Renewable
Identification Numbers have traded on ICE, reflecting ICE’s role as
the world’s leading environmental marketplace. In 2021, ICE traded
the equivalent of an estimated $1 trillion in notional value of
carbon allowances, equal to over half the world’s estimated total
annual energy-related emissions footprint.
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, 2021, as
filed with the SEC on February 3, 2022.
ICE- CORP
Source: Intercontinental Exchange
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version on businesswire.com: https://www.businesswire.com/news/home/20220509005510/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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