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ICE Launches Carbon-Neutral U.S. Electricity Futures Index
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Intercontinental Exchange (ICE) has launched the first carbon-neutral U.S. electricity futures index, targeting investors interested in sustainable energy investments. This new benchmark, developed with methodology licensed from the Carbon Neutral Investment Company (CNIC), focuses on the significant North American power markets, capturing the prompt twelve months of electricity futures and associated carbon allowance contracts. With more than $1.5 trillion in global assets, ICE aims to offer an impactful tool for those looking to enhance their portfolio with renewable energy exposure. This initiative aligns with the growing emphasis on sustainability in financial markets.
Positive
Launch of the first carbon-neutral U.S. electricity futures index bolstering ICE's innovative offerings.
Methodology licensed from a recognized firm enhances credibility and market appeal.
Provides exposure to North American power markets, appealing to investors prioritizing sustainability.
Negative
None.
Leverages innovative index methodology from Carbon Neutral Investment Company
ATLANTA & NEW YORK--(BUSINESS WIRE)--
Intercontinental Exchange, Inc., a leading global provider of data, technology and market infrastructure, today announced the launch of the first carbon-neutral U.S. electricity futures index. With the market focused on the build out of North American renewable generation and its impact on U.S. power prices, the ICE U.S. Carbon Neutral Power Index provides investors with a benchmark that contains exposure to the critical North American power markets.
“Electricity is the second largest energy component of the Consumer Price Index and is not directly included in any of the existing major commodity indices,” said Varun Pawar, Vice President, Head of ICE Data Indices. “This rules-based index developed by ICE with methodology licensed from Carbon Neutral Investment Company LLC (CNIC) has the ability to be a preferred financial instrument for investors who are looking for sustainable North American commodity exposure in their portfolios.”
The ICE U.S. Carbon Neutral Power Index consists of the prompt twelve months of ICE-listed electricity futures contracts from six major U.S. power pools as well as carbon allowance futures contracts designed to offset the emissions of the generation associated with these electricity futures contracts. With the utilization of the six major U.S. power pools, the ICE U.S. Carbon Neutral Power Index will be broadly representative of U.S. electricity consumption and price.
“We are proud to have licensed our methodology as part of the ICE U.S. Carbon Neutral Power Index,” said Donald R. Sinclair, Chairman of CNIC. “This index will assist us in developing financial instruments that provide investors exposure to exchange-traded electricity futures and carbon offsets, while having the ability to use the ICE U.S. Carbon Neutral Power Index as a benchmark.”
ICE’s global family of indices serves as the performance benchmark for more than $1.5 trillion in assets managed by investors around the globe. For more information about ICE’s Indices, please visit: https://www.theice.com/market-data/indices.
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. FactSet® is a trademark of FactSet Research Systems, Inc. Other products, services, or company names mentioned herein are the property of, and may be the service mark or trademark of, their respective owners. 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.
About Carbon Neutral Investment Company
CNIC is an investment organization responsible for developing and managing commodity-based investment products. Led by industry executives with 20+ year of commodity, asset, risk management and C-Suite experience, CNIC applies rigorous fundamental and quantitative analysis with a qualitative overlay to address capital markets needs with innovative products
The ICE U.S. Carbon Neutral Power Index is the first carbon-neutral electricity futures index in the U.S., providing a benchmark for investors interested in sustainable energy.
When was the ICE U.S. Carbon Neutral Power Index launched?
The ICE U.S. Carbon Neutral Power Index was launched recently as part of ICE's efforts to enhance its offerings in renewable energy investments.
What assets does the ICE Carbon Neutral Power Index cover?
The ICE Carbon Neutral Power Index includes the prompt twelve months of electricity futures contracts and carbon allowance futures aimed at offsetting emissions.
How much capital is benchmarked against ICE's global indices?
ICE’s global family of indices serves as the performance benchmark for more than $1.5 trillion in assets managed by investors worldwide.
Who licensed the methodology for the ICE Carbon Neutral Power Index?
The methodology for the ICE Carbon Neutral Power Index was licensed from the Carbon Neutral Investment Company (CNIC).
