Intercontinental Exchange Sees Record Growth in Environmental Trading

Record Performance in Environmental Trading by ICE

Intercontinental Exchange, Inc. (NYSE: ICE) has reported an impressive achievement in the environmental markets during 2024. This year marked another milestone, as ICE recorded a staggering number of environmental contracts traded, reaching over $1 trillion in notional value for the fourth consecutive year. This continuous growth demonstrates ICE's substantial influence and leadership in the global trading landscape.

Environmental Futures and Options Contracts Soar

The exchange recorded approximately 20.4 million environmental futures and options contracts traded, denoting an impressive increase of about 40% year-over-year. This spike not only highlights a significant rise in interest from market participants but also indicates a robust expansion in trading activity. Moreover, ICE's platforms achieved record average daily trading volumes, reflecting heightened engagement in these environmental markets.

Record Achievements in Carbon Allowances

ICE’s EU Carbon Allowance (EUA) futures and options showcased robust performance, cementing its position as the most liquid carbon derivatives market globally. Participation reached remarkable levels in 2024, with physical carbon allowances traded amounting to a value of $40 billion. The U.K. Carbon Allowance (UKA) futures and options also experienced similar records, indicating a strengthening market.

North American Environmental Markets Thriving

Across the North American region, environmental trading milestones were also achieved. A record 5.6 million futures and options traded, contributing to a physical delivery total valued at an astonishing $12.3 billion. Specifically, the California Carbon Allowance (CCA) market saw extraordinary activity this year, with 3.9 million contracts traded, marking an impressive 68% increase year-over-year.

ICE's Commitment to a Sustainable Future

The commitment to creating an interconnected global network of environmental markets has been a cornerstone of ICE's philosophy for over two decades. Gordon Bennett, the Managing Director of Utility Markets at ICE, remarked on the company's focus on helping customers meet their emissions obligations. He also emphasized the development of scalable carbon credit markets, including CORSIA, which aims to mitigate emissions from international aviation.

New Opportunities with ETS 2

In response to the expanding scope of carbon markets, the European Union recently introduced a new emissions trading scheme, known as ETS 2. This scheme aims to manage carbon dioxide emissions produced from fuel combustion in both buildings and road transport. To support this transition, ICE plans to launch EUA 2 futures, aimed at facilitating effective carbon price risk management in these emerging sectors, pending regulatory approval expected in 2025.

A Legacy of Environmental Trading

Since its inception, ICE has successfully traded a whopping 166 billion carbon allowances, 6 billion carbon credits, and 588 million renewable energy certificates, alongside the equivalent of 21.2 billion Renewable Identification Numbers (RINs). These figures underscore ICE's commitment to fostering a sustainable and transparent trading environment for all stakeholders involved.

About Intercontinental Exchange

Intercontinental Exchange, Inc. (NYSE: ICE) stands at the forefront of financial technology, specializing in connecting people to opportunities through innovative digital networks. As a Fortune 500 company, ICE offers a range of data services across major asset classes designed to enhance transparency and efficiency. From futures to equity and options exchanges, including the renowned New York Stock Exchange, ICE creates platforms that facilitate investment, capital raising, and risk management. Additionally, their services extend to fixed income and data analytics, providing vital information that aids customers in seizing opportunities.

Frequently Asked Questions

What is the main achievement reported by ICE in 2024?

ICE reported a record number of environmental contracts traded, exceeding $1 trillion in notional value for the fourth consecutive year.

How much did the trading of carbon allowances value?

ICE saw a physical delivery of carbon allowances valued at $40 billion in 2024.

What growth was noted in California's Carbon Allowance market?

The California Carbon Allowance market experienced a record trading volume of 3.9 million contracts, with a significant increase of 68% year-over-year.

What is CORSIA?

CORSIA is a global market-based carbon credit program implemented by ICE aimed at reducing emissions from international aviation.

What new emissions trading scheme has the EU introduced?

The European Union introduced ETS 2 to manage CO2 emissions from fuel combustion in buildings and road transport.

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