WASHINGTON (dpa-AFX) - Intercontinental Exchange, Inc. (ICE), a global leader in technology and data services, has launched EU Carbon Allowance - EUA 2 futures, adding to its suite of benchmark carbon derivatives.
Trading for the new EUA 2 futures began on May 6, 2025, with initial activity totaling the equivalent of 5,000 allowances.
This launch aligns with the European Union's creation of Emissions Trading System 2 or ETS2, which aims to regulate carbon emissions from fuel combustion in buildings and road transport. Set to become operational in 2027, ETS2 is expected to extend carbon coverage to 80% of the EU economy and include around 20,000 entities.
ICE's Global Head of Environmental Markets, Gordon Bennett, noted that the new futures contract supports decarbonization by offering vital price signals for sectors newly subject to carbon compliance. He emphasized ICE's 25-year investment in environmental markets.
Key market participants also endorsed the launch. Macquarie, Mercuria, Trafigura, Statkraft, Mabanaft, Vertis, and Global Factor all highlighted the importance of EUA 2 futures in enabling price transparency, managing compliance risks, and incentivizing investment in low-emission technologies. These firms view the contract as critical for supporting a broader, more effective carbon market across Europe.
The EUA 2 futures join ICE's extensive portfolio of environmental products, which facilitate trading across global carbon and renewable energy programs. ICE handles over $1 trillion in environmental contracts annually and has seen the trade of more than 173 billion carbon allowances since inception.
ICE is currently trading at $178.41 or 1.10% higher on the NYSE.
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