Intercontinental Exchange, Inc., a prominent global provider of technology and data, has reported a significant milestone in environmental trading. The company announced that ICE carbon allowance volumes traded the equivalent of $1 trillion in notional value in 2023, marking the third consecutive year of this achievement.

Trading activity in ICE’s global environmental markets has seen a remarkable increase of over 30% year-over-year, with open interest up by 20% compared to the previous year. The EU Carbon Allowance (EUA) futures and options, known as the world’s most liquid carbon market and the global benchmark for emissions pricing, witnessed record participation throughout 2023 and into the first quarter of 2024.

To further enhance their market offerings, ICE introduced Mini EUA futures with a lot size of 100 tons, catering to the shipping industry’s needs in managing emissions price risk. This new contract size complements ICE’s existing contracts across various sectors such as Marine Fuels, Wet Freight, LNG and LPG Freight, and Low Sulphur Gasoil futures.

Gordon Bennett, Managing Director of Utility Markets at ICE, highlighted the company’s role in the energy transition landscape, stating, “Our global network of exchanges and data are at the core of the world’s energy transition, shaping benchmark prices for energy and carbon on a daily basis.” Bennett also emphasized the EU’s influence on international carbon markets and the importance of offering tools like CORSIA and Mini EUA futures to help customers manage their carbon emissions effectively.

In 2023, ICE launched CORSIA futures, providing airline operators with a targeted tool to manage emissions exposure, making it the sole platform for trading futures based on CORSIA Phase 1. Additionally, ICE expanded its cap-and-trade futures markets by introducing Washington carbon allowance futures in 2023 and listing the first environmental futures market based on Alberta, Canada’s carbon program in 2024.

Year-to-date in 2024, North American environmental markets have witnessed over 1.6 million contracts traded, a notable increase of over 40% compared to the same period last year. In 2023, a record-breaking 3.9 million contracts were traded, underscoring the growing participation in the market. The notional value of physically settled futures contracts in the North American portfolio reached $10.8 billion in 2023, surpassing the previous record set in 2021.

ICE continues to offer customers access to highly liquid markets for trading futures and options on a range of environmental products, including California Carbon Allowances, California Carbon credits, RGGI Allowances (RGA), and California Low Carbon Fuel Standard (LCFS) Credits.