ICE publishes auction calendar for UK’s new Emissions Trading Scheme

Rhea-AI Summary

Intercontinental Exchange (NYSE:ICE) announced the UK’s new Emissions Trading Scheme (ETS) auction calendar, with the first auction set for May 19, 2021, pending regulatory approval. ICE will host these auctions for the UK Government's Department for Business, Energy and Industrial Strategy. ICE plans to launch UK Allowance (UKA) Futures contracts on the same date, with UKA Daily Futures following on May 21, 2021. The UK ETS aims to enhance climate goals, building on the success of the previous EU system, with carbon trading on ICE reaching over 14 gigatonnes annually.

Positive

• ICE appointed to host UK ETS auctions, enhancing its role in global environmental markets.
• Launch of UKA Futures and UKA Daily Futures expected to provide new trading opportunities.
• UK emissions have decreased by 41% since 1990, showcasing the UK’s leadership in climate initiatives.

Negative

• None.

Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, today announced the publication of the auction calendar for the UK’s new Emissions Trading Scheme (“ETS”) with the first auction due to commence on May 19, 2021, subject to regulatory approval.

ICE was appointed to host emissions auctions on behalf of the UK Government’s Department for Business, Energy and Industrial Strategy (BEIS) following the announcement from the UK Government and Devolved Administrations in December 2020 of the planned launch of a UK ETS to replace the UK’s participation in the EU ETS.

ICE plans to launch ICE UK Allowance (UKA) Futures contracts on May 19, 2021, coinciding with the launch of the first auction, with UKA Daily Futures following on May 21, 2021, subject to regulatory approval. ICE UKA Futures will trade on ICE Futures Europe and clear at ICE Clear Europe alongside ICE’s global environmental complex, including European Union Allowances (EUA), California Carbon Allowances (CCAs) and California Carbon Offsets (CCOs).

“The publication of our ambitious UK Emissions Trading Scheme’s auction calendar is another crucial step towards our target of eliminating our contribution to climate change by 2050,” said UK Energy Minister Anne-Marie Trevelyan. “Our scheme is even more ambitious than the EU system it replaces and today’s publication will give businesses and operators clarity over this year’s supply of emissions allowances, enabling them to plan ahead, build back greener and better prepare for the transition to a low-carbon economy”.

“We are excited about the addition of a new carbon market and believe the UK ETS will be pivotal in supporting the climate ambitions of the four governments of the UK”, said Gordon Bennett, Managing Director of Utility Markets at ICE. “UK emissions have fallen 41% since 1990, more than any other major developed country and this has been driven by the UK’s leadership in promoting market-based mechanisms to support climate goals. There is an enormous opportunity for cap and trade programs to take an even greater role in supporting the goals of the Paris Agreement, whether it is increasing their sector coverage or encouraging international linking.”

ICE offers customers access to the largest and most liquid environmental markets in the world. More than 14 gigatonnes of carbon trades on ICE annually, which is equivalent to approximately 40% of the world’s total annual emissions footprint based on current estimates.

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.

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. 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, 2020, as filed with the SEC on February 4, 2021.

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Source: Intercontinental Exchange

View source version on businesswire.com: https://www.businesswire.com/news/home/20210226005343/en/

FAQ

What is the schedule for the UK Emissions Trading Scheme auctions announced by ICE?

The first UK ETS auction is scheduled for May 19, 2021, with a subsequent auction on May 21, 2021, subject to regulatory approval.

How is ICE involved in the UK Emissions Trading Scheme?

ICE has been appointed to host emissions auctions for the UK Government's ETS, replacing the previous EU system.

What are UKA Futures contracts and when will they launch?

ICE plans to launch UK Allowance (UKA) Futures contracts on May 19, 2021, coinciding with the first auction of the UK ETS.

What percentage of carbon trading does ICE represent globally?

ICE facilitates the trading of over 14 gigatonnes of carbon annually, which is approximately 40% of the world's total annual emissions footprint.