ICE appointed to host UK emissions auctions for the UK Emissions Trading Scheme
Intercontinental Exchange (NYSE:ICE) has been selected to conduct emissions auctions for the UK Government's Department for Business, Energy and Industrial Strategy. This initiative supports the launch of the UK Emissions Trading Scheme (UK ETS) starting January 1, 2021, which replaces the EU ETS. Auctions are set to begin by the second quarter of 2021, pending regulatory approval. ICE has a strong background in environmental markets, with open interest in EUA hitting a record €51.4 billion, reflecting a 20% increase in average daily volume. ICE has hosted EUA auctions for the UK Government since 2012.
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Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, announces that ICE has been appointed to host emissions auctions on behalf of the UK Government’s Department for Business, Energy and Industrial Strategy (BEIS).
As announced on December 14, 2020, the UK Government and Devolved Administrations will launch a UK Emissions Trading Scheme (UK ETS) from January 1, 2021, to replace the UK’s participation in the EU ETS.
Further details on the auction calendar and the spot and futures contracts ICE intends to launch in connection with the new UK ETS will be announced in due course. ICE plans to commence auctions and launch the related futures contracts as soon as feasible and no later than the second quarter of 2021, subject to regulatory approval.
“We congratulate the UK Government for its commitment and vision for a UK emissions trading scheme and are delighted to continue hosting auctions on its behalf,” said Gordon Bennett, Managing Director, Utility Markets at ICE. “Market-based mechanisms like carbon cap and trade programs are pivotal in allowing policy makers to control the quantity of carbon to align with their net-zero commitments and consequently put a price on the externality of pollution to reach those goals in the most cost-effective manner.”
ICE has conducted Phase III EUA auctions on behalf of the UK Government since November 2012 and the first EUAA auction on ICE took place in September 2014.
ICE has been a leader in environmental markets for nearly two decades. A wide and increasing group of stakeholders use the price signals from ICE’s markets and indices to help assess climate transition risk in their portfolios, and access liquidity pools for compliance purposes, managing risk and allocating capital to benefit from energy transition opportunities.
On December 4, EUA open interest (OI) hit a record value for notional equivalent of more than
About Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE) is a Fortune 500 company and provider of marketplace infrastructure, data services and technology solutions to a broad range of customers including financial institutions, corporations and government entities. We operate regulated marketplaces, including the New York Stock Exchange, for the listing, trading and clearing of a broad array of derivatives contracts and financial securities across major asset classes. Our comprehensive data services offering supports the trading, investment, risk management and connectivity needs of customers around the world and across asset classes. As a leading technology provider for the U.S. residential mortgage industry, ICE Mortgage Technology provides the technology and infrastructure to transform and digitize U.S. residential mortgages, from application and loan origination through to final settlement.
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Source: Intercontinental Exchange
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