Data, technology and market infrastructure provider Intercontinental Exchange, Inc. (ICE) has launched its newest carbon futures market based on Washington state’s Cap-and-Invest program.
The Washington futures contract launched on June 5, 2023, with a total of 495 contracts traded presently – equivalent to 495,000 Washington carbon allowances.
“New programs like Washington, combined with the widening scope of the European ETS, means that more companies and sectors are mandated to account for the cost of pollution and treat their emissions footprint as a liability, incentivizing them to seek lower cost abatement opportunities and deliver a net zero pathway,” ICE Head of Utility Markets Gordon Bennett, said. “Financial markets play a fundamental role in helping to allocate capital efficiently and the price signals and liquidity of ICE’s energy and environmental markets are integral to managing the uncertainties in meeting net zero.”
The Washington contracts serve as ICE’s latest addition to the firm’s global environmental markets, offering the most liquid venues to trade European, North American and UK environmental programs.
“We welcome the new Washington Carbon Allowance Futures contract as it increases liquidity and opens the market to a broader set of participants,” Braeswood Carbon Managing Member Hank Yan said. “Liquid, efficient environmental markets will deliver robust outcomes at the lowest possible cost and this launch marks yet another milestone in these markets’ growth.”
Green Trading Capital Co-founder and CIO Dusty Granet said the firm is excited for the growth of the environmental products offered by ICE.
“With the expansion of new carbon and renewable markets both domestically and globally, it is imperative to have robust futures and options offerings for the long-term success of these programs,” Granet said.