ICE Publishes Update on UK Emissions Trading Scheme Ahead of First UK Emissions Auction on May 19
Intercontinental Exchange (NYSE:ICE) announced updated guidance on eligibility criteria for participating in the upcoming UK emissions auctions scheduled for May 19. The UK Government’s BEIS published these updates as part of launching the UK Emissions Trading Scheme. Auction participants must register with ICE. Additionally, ICE will introduce UK Allowance (UKA) Futures contracts on the same day as the auction and UKA Daily Futures shortly after, pending regulatory approval. ICE emphasizes the importance of the UK ETS in supporting the UK's climate goals.
- ICE appointed to host UK emissions auctions, indicating strong government collaboration.
- Launch of UK Allowance Futures contracts is set for May 19, enhancing market offerings.
- ICE's environmental markets account for 40% of global energy-related emissions, showcasing significant market share.
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Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced that, ahead of the first auction of UK emissions allowances for the UK Emissions Trading Scheme (UK ETS) due to commence on May 19, the UK Government’s Department for Business, Energy and Industrial Strategy (BEIS) has published updated guidance on the eligibility criteria for participating in the auctions.
The updated guidance can be found here. Auction participants will need to register with ICE. Market participants who are interested in bidding in UK ETS auctions should contact sales-utilities@ice.com.
ICE was appointed to host emissions auctions on behalf of BEIS following the announcement from the UK Government and Devolved Administrations of the planned launch of a UK ETS to replace the UK’s participation in the EU ETS.
Full details of the UK Allowance (UKA) auctions, including the auction calendar, can be found here. ICE plans to launch UKA Futures contracts on May 19, coinciding with the launch of the first auction, with UKA Daily Futures following on May 21, subject to regulatory approval. These will 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).
“We believe the UK ETS will be pivotal in supporting the climate ambitions of the UK”, said Gordon Bennett, Managing Director of Utility Markets at ICE. “Reliable and liquid carbon and energy benchmarks are critical for markets to deliver an efficient transition from high to low carbon energy generation and carbon cap and trade programs have proved to be an incredibly successful policy tool in abating emissions.”
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
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.
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. 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).”
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Source: Intercontinental Exchange
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