Transactions with a notional amount of $1 trillion in ICE environmental contracts

Intercontinental Exchange, a leading global provider of technology and data, announced that ICE carbon allowance trading volume will reach $1 trillion in notional value in 2023 for the third consecutive year.

Trading activity in ICE’s global environmental market is up over 30% year over year, and open interest is up 20% year over year.

ICE’s EU Carbon Allowance (EUA) futures and options, the world’s most liquid carbon market and global benchmark price for emissions, saw record participation throughout 2023 and in the first quarter of 2024. reached the number.

To complement this market, ICE has launched Mini EUA futures with a lot size of 100 tonnes, compared to the benchmark EUA futures lot size of 1000 tonnes. The smaller contract size is designed to help the shipping industry manage emissions price risk and will run parallel to ICE’s existing contracts across marine fuel, wet cargo, LNG and LPG cargo, and low-sulfur gas oil futures. Become.

“Our global network of exchanges and data, built over the past two decades and growing, is now at the center of the world’s most important energy transition, where energy and carbon benchmark prices are being formed every day. ” said Managing Director Gordon Bennett. ICE utility market.

“As the largest and most liquid carbon market in the world, the EU will continue to influence international carbon markets. And with the addition of CORSIA and mini-EUA futures, ICE is making it easier for customers to risk tons of carbon and reap profits. “We’re providing additional tools to get ‘the price of emissions costs,'” Bennett continued.

ICE’s CORSIA futures went live in 2023, providing a targeted tool for airlines to manage their emissions exposure. Currently, the market is the only way to trade futures based on his CORSIA Phase 1. Additionally, in 2023, ICE expanded the scope of the cap. We established futures and trade futures markets with the launch of Washington Carbon Emissions Allowance Futures, and in 2024 we listed the first environmental futures market under Canada’s Alberta Carbon Program.

To date in 2024, more than 1.6 million contracts have been traded across the North American environmental market, an increase of more than 40% compared to this time last year. In 2023, a record 3.9 million contracts were traded, along with a record number of participants. The notional value of physically settled futures contracts in the North American portfolio was $10.8 billion in 2023, breaking the last record set in 2021.

ICE provides customers with the most liquid market for trading California Carbon Allowances, California Carbon Credits, RGGI Allowances (RGA), California Low Carbon Fuel Standard (LCFS) Credits, and Renewable Energy Certificate futures and options. Offers.

ICE’s energy and environmental markets are among the most liquid in the world. On April 18, 2024, open interest across ICE’s global energy portfolio reached a record 61 million contracts. Since its launch, more than 166 billion carbon emissions rights, approximately 460 million renewable energy certificates, 6 billion carbon credits, and 13 billion worth of Renewable Identification Numbers (RINs) have been traded on ICE.

Source:ICE

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