1 | CONFIDENTIAL

Voluntary Markets 

Convening| CFTC 

July 2023
2 | CONFIDENTIAL

Net zero
3 | CONFIDENTIAL

Annual anthropogenic CO2 emissions = 40 

billion tonnes

EUA CCA

RGA UKA

WA Other ETS

Crediting mechanisms Tax

Not priced directly

Annual emissions and net zero pathway

Carbon pricing and carbon tonnes at risk
4 | CONFIDENTIAL

What is the energy transition?

Changing the merit order to conserve the carbon budget Carbonomics

Current fuel merit order example Future fuel merit order? 
5 | CONFIDENTIAL

Taxonomy of Environmental 

Markets
6 | CONFIDENTIAL

ICE recommendations: Voluntary and compliance carbon markets 

and other environmental markets

Common approach for VCMs and 

CCMs 

- The instruments do the same thing. 

Value externalities.

- Environmental markets are 

decades old. 

- Infrastructure has gone through 

series of iterations (learning curve) 

in existing markets. 

Role of IOSCO:

- Principles for standard setters (issuers) 

and registries (custodians)

- Regulatory treatment of environmental 

contracts

- High-level minimum baseline to 

harmonize the work of the 

private initiatives

Importance of financial participation 

in carbon markets

Others (e.g. role of blockchain)
7 | CONFIDENTIAL

 ICE Offering: 11 Futures which are shown below, together with the listed expiries.

 underlying: Verra VCU, AFOLU Projects, with CCB certifications. 

 Same Vintage Range for each future: 5 Years

 Non-Rolling: All 5 years buckets are fixed

 Only difference between each future: Beginning/Ending date of the eligible vintages

ICE Nature Based Solution Carbon Credits Futures: key contract specs

PCC Vintage Start Vintage End March June Sept Dec

NBT 1st Jan 2016 31 Dec 2020 1 1 2 4 (23, 24, 25, 26)

OVA 1st Jan 2017 31 Dec 2021 1 1 2 4 (23, 24, 25, 26)

OVB 1st Jan 2018 31 Dec 2022 1 1 2 4 (23, 24, 25, 26)

OVC 1st Jan 2019 31 Dec 2023 1 1 2 4 (23, 24, 25, 26)

OVD 1st Jan 2020 31 Dec 2024 1 1 2 4 (23, 24, 25, 26)

OVE 1st Jan 2021 31 Dec 2025 1 1 2 4 (23, 24, 25, 26)

OVF 1st Jan 2022 31 Dec 2026 1 1 2 4 (23, 24, 25, 26)

OVG 1st Jan 2023 31 Dec 2027 3 (23, 24, 25)

OVH 1st Jan 2024 31 Dec 2028 3 (24, 25, 26)

OVI 1st Jan 2025 31 Dec 2029 3 (25, 26, 27)

OVJ 1st Jan 2026 31 Dec 2030 3 (26, 27, 28)
8 | CONFIDENTIAL

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