Latest news with #EUETS
Business Wire
09-05-2025
- Business
- Business Wire
ICE Launches EU Carbon Allowance 2 Futures
AMSTERDAM & LONDON & NEW YORK--(BUSINESS WIRE)--Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, announced the launch this week of EU Carbon Allowance (EUA) 2 futures, with the contract now available to trade alongside ICE's benchmark EUA futures and options, the most liquid carbon derivatives market in the world. The EUA 2 futures contract launched on May 6, 2025, with the first trades taking place on the same day, totaling the equivalent of 5,000 EUA 2 allowances. Reflecting how many carbon markets are expanding their scope and coverage, the European Union has created a new emissions trading system called the Emissions Trading System 2 (ETS2) which is designed to cover carbon dioxide emissions from fuel combustion in buildings and road transport. The ETS2 is expected to become operational in 2027 and double the scope of the existing EU ETS to 80% of the EU economy, expanding the number of covered entities to approximately 20,000. '2025 marks twenty-five years since ICE began investing in and building global energy and environmental markets, and today ICE's markets provide the price signals and liquidity that allow companies to manage the uncertainties of decarbonization,' said Gordon Bennett, Global Head of Environmental Markets at ICE. 'The carbon price set by the EU ETS2 can provide a market incentive for investments in building renovations and low-emissions mobility and by offering futures covering this new system, ICE is delivering price signals to customers who are mandated to account for the cost of pollution in these new sectors.' 'Macquarie is pleased to participate in the launch of the ICE EUA 2 futures contract,' said German Tyeles, a Senior Vice President within Macquarie's Commodities and Global Markets business. 'We have supported clients across environmental markets worldwide for almost two decades and look forward to putting our commodities expertise to work in this emerging space.' 'We are excited to see ICE yet again playing a pioneering role in providing market participants such as Mercuria with the necessary instruments to enable price discovery in these new sectors covered in the EU's approach to carbon pricing,' said James Cooper, Head of Origination EMEA, Environmental Products at Mercuria. 'ICE's launch of an EUA 2 contract marks a significant milestone in the evolution of Europe's carbon markets, enhancing price transparency and strengthening Trafigura's ability to manage risk on behalf of their customers in newly affected sectors,' said Hannah Hauman, Global Head of Carbon Trading at Trafigura. 'Statkraft strongly believes in carbon markets as a market-based tool to fight climate change and renew the way the world is powered,' said Misja Nuyens, Head of Global Environmental Markets at Statkraft. 'We have been supportive of the EU ETS as a core in the EU energy transition from the very start in 2005 and contributed to the liquidity of the market through our trading activities. Statkraft is therefore pleased to witness the launch of the EUA 2 contract on ICE.' 'We fully support transparent, market-based platforms that enable fair carbon dioxide pricing,' said Dr. Arne Weber, Head of Power, Gas & Emissions at Mabanaft. 'These new instruments offer a valuable opportunity to manage long-term carbon dioxide risks and provide the essential price signals needed to drive investment and decision-making in the energy transition. A well-functioning market is fundamental to achieving carbon dioxide management in an economically viable way.' 'The launch of the EUA 2 futures contract is a critical step in helping market participants prepare for the expansion of the EU carbon market. We at Vertis see a growing interest from companies, particularly in sectors not currently covered by ETS1, as they assess the financial implications of future compliance,' said Bartosz Wilamowski, Head of Sales - EU ETS at Vertis. 'Unlike the early days of ETS1, we expect ETS2 to drive more immediate and material cost exposure. This new contract brings much-needed price transparency, enabling businesses to better plan and manage their carbon-related financial risks.' 'Global Factor welcomes the launch of ICE's EUA 2 futures contract. This new instrument will play a crucial role in sending clear price signals to support the decarbonization of road transport and residential energy use at the lowest cost,' said Kepa Solaun, CEO of Global Factor. 'It also offers an essential tool for managing the risks faced by the companies we work with.' The EUA 2 futures contract is the latest addition to ICE's global environmental markets which offer the most liquid venues to trade European, North American, and U.K. environmental programs. The equivalent to over $1 trillion worth of environmental contracts trade on ICE each year and since launch over 173 billion carbon allowances, 655 million renewable energy certificates and over 6 billion tons of carbon credits have traded across ICE's global markets. About Intercontinental Exchange Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE's futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world's largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology , we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates 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).' 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, 2024, as filed with the SEC on February 6, 2025.
Reuters
04-04-2025
- Business
- Reuters
EU carbon market emissions drop 5% in 2024, on track for 2030 target
BRUSSELS/LONDON April 4 (Reuters) - Carbon dioxide emissions regulated under the European Union's emissions trading system (ETS) fell by 5% in 2024, driven by cuts in the power sector, the European Commission said on Friday. Around 45% of the European Union's output of greenhouse gases is regulated by the EU ETS, which is the 27-nation bloc's flagship scheme to tackle global warming by charging for the right to emit carbon dioxide (CO2). It forces manufacturers, power companies and airlines to pay for the CO2 they emit by surrendering carbon allowances. "ETS emissions are now around 50% below 2005 levels and on track to achieve the 2030 target of -62%," the EU Commission said in a statement. The largest fall was in the power sector, which saw a 12% drop in emissions compared with 2023 levels. 'This reduction is due to an increase in electricity production from renewables by 8% and nuclear by 5%, coupled with a decrease in gas by 8% and coal by 15%," the Commission said. Emissions from industry were stable, with a 5% cut in emissions from the cement sector offset by a 7% rise in the fertilizer sector. Aviation sector emissions rose around 15%, which the Commission said was due to a broadening of geographical coverage with non-domestic flights included. The ETS was expanded to include some maritime emissions last year, with 72 million tons of CO2 reported for 2024. Benchmark prices in the EU ETS fell around 4.5% on Friday afternoon to 63 euros per metric ton in line with sharp declines in other markets after China announced retaliatory tariffs on U.S. goods, fanning global recession fears. Prices have fallen around 25% since their peak this year in last January.
Gulf Insider
08-03-2025
- Business
- Gulf Insider
New EU Carbon Market Set To Hammer Households And Small Businesses
The European Union's (EU) new emissions trading system, expected to take effect in 2027, is set to hike prices for home heating and transportation, research firm BloombergNEF says in a new report. The new EU Emissions Trading System for buildings, road transport, and small industry, dubbed ETS2, is scheduled to become fully operational in 2027. ETS2 will cover and address the carbon dioxide (CO2) emissions from fuel combustion in buildings, road transport, and additional sectors, mainly small industry not covered by the existing Emissions Trading System – EU ETS. 'So far, emission reductions in those sectors have been insufficient to put the EU on a firm path towards its 2050 climate neutrality goal. The carbon price set by the ETS2 will provide a market incentive for investments in building renovations and low-emissions mobility,' the European Commission says. Although it will be a 'cap and trade' system like the existing EU ETS, the ETS2 will cover emissions upstream. This means that it will be fuel suppliers, rather than end consumers such as households or car users, that will be required to monitor and report their emissions. User may not pay directly, but fuel suppliers are likely to pass on the higher costs due to the carbon emissions trading. Two years after the 2027 launch, the price of CO2 could jump to as much as $161 (149 euros) per metric ton in 2029, according to BloombergNEF's analysis. This would be more than double the current price of CO2 under the existing EU ETS trading system for emissions from industry and power plants. Click here to read more.. .
Yahoo
30-01-2025
- Business
- Yahoo
Carbon capture in Mediterranean soil: how farmland can trap greenhouse gases
Imagine if we could find a way to capture the greenhouse gases that are warming our planet. One way to do this is carbon farming, a practice that has great potential as a green business model, especially in countries with a Mediterranean climate. Carbon farming works by incorporating organic matter into the soil, thereby increasing its organic carbon storage. Some of the most significant carbon farmming practices are agroforestry, soil organic cover, reduced ploughing, effective water use, and integrated fertilisation management, which includes efficient planning and application of crop nutrients and prioritising the use of organic fertilisers. These practices have a number of other benefits. They improve ecosystem services (the benefits that an ecosystem provides to society), move us closer to a circular economy, and help to prevent and control pollution. They also protect and restore biodiversity. However, in the Mediterranean region, there are several technical, economic and social barriers to consolidating it as a sustainable business model. Carbon markets emerged as a way to incentivise the reduction of greenhouse gas emissions. These systems use carbon credits as a unit of financial measurement – one carbon credit represents one tonne of CO₂ that has been reduced, avoided, or removed from the atmosphere. There are currently three main systems for trading carbon credits: regulated, voluntary, and hybrid markets. The first of these, the European Emissions Trading System (EU ETS), obligates companies by law to reduce emissions, or to buy permits if they exceed limits. It applies to large emitters, such as transport and aviation, but not to agriculture. The voluntary market is used by companies that are not legally obligated to reduce their emissions, but wish to do so as part of their sustainability, marketing and corporate responsibility strategies. In this market, independent organisations certify projects that generate these credits. The hybrid system combines voluntary and regulated markets to reduce emissions. While it can bring benefits, a lack of transparency and standards creates fertile ground for greenwashing, when companies pretend to be sustainable without real commitment. Leer más: In 2021, the European Commission developed a voluntary framework for certifying carbon capture projects in sectors such as agriculture. This meant they could be integrated into the European Union's Common Agricultural Policy, which includes financial incentives for sustainable practices. However, the Mediterranean's agricultural and climatic complexity makes it difficult to monitor and verify carbon levels in agricultural soils. The Mediterranean region faces extreme weather events that affect carbon sequestration. These include droughts, heat waves and heavy rainfall. High climate variability makes it difficult to establish reliable baselines, which means monitoring has to be adaptive and carefully targeted. Additionally, the region has a variety of soil types – limestone, clay and sandy – which each have different capacities to retain and store carbon. This diversity makes it difficult to monitor and accurately quantify the carbon stored, and thus to remunerate farmers for the carbon sequestration they generate. For this reason several research centres, such as the UVic-UCC BETA Technological Centre, are working to identify and develop tailor-made technologies and methodologies that can detect small changes in the soil in order to measure carbon levels. Thanks to mathematical models developed by long-term projects, we can determine the amount of organic matter present in a soil sample that is representative of a certain area. This is then used to estimate the CO₂ contained in that fraction of matter, and therefore the carbon it has captured. It is easier to apply models like these on homogeneous land, such as the US corn belt, where sampling requires less effort. In Europe, greater variety complicates matters, and makes sampling plans more expensive, usually at the producers' expense. In the case of the Mediterranean region, models that have been specifically calibrated for its agro-climatic conditions yield more accurate carbon measurements. Remote sensing techniques are the most potentially useful tool here. They use high-resolution multispectral satellite imagery, composed of multiple bands of the electromagnetic spectrum (e.g. infrared or ultraviolet), where each band provides specific data that can be used to estimate some soil properties, such as organic matter content. In this way, we can calculate possible uptakes that result from agronomic management. Unmanned aerial vehicles, such as drones, can capture detailed information on vegetation, soil type and moisture levels, all of which are also related to the amount of carbon sequestered. Images taken at different wavelengths allow for estimations of soil biomass and organic matter. Likewise, CO₂ flux towers or gas exchange towers – high-tech devices that measure gas concentrations in the air thousands of times per minute – are very useful for measuring the amount of CO₂ released by the soil in a field. The data obtained is then fed into a series of equations, which estimate how much gas is moving in and out of the ecosystem. Carbon farming in the Mediterranean has great potential, but faces challenges due to agro-climatic diversity and lack of standardised methods. Mechanisms such as the CAP and voluntary markets can boost climate neutrality, but only if they are adapted to local conditions. Este artículo fue publicado originalmente en The Conversation, un sitio de noticias sin fines de lucro dedicado a compartir ideas de expertos académicos. Lee mas: From robots and drones to sheep trackers, new tech can help farmers monitor and improve soil health Think your efforts to help the climate don't matter? African philosophers disagree Flu vaccines have prevented millions of deaths – our research proves it Carlos Alberto Torres Guerreo receives funding from Programme Interreg EUROMED to develop the Carbon Farming MED project. Cèlia Guixé Marsiñach y Paula Pérez González-Anguiano no reciben salarios, ni ejercen labores de consultoría, ni poseen acciones, ni reciben financiación de ninguna compañía u organización que pueda obtener beneficio de este artículo, y han declarado carecer de vínculos relevantes más allá del puesto académico citado.
