Sustainable 

finance

Gordon Bennett

Managing Director, Utility Markets

CFTC’s Energy and Environmental Markets 

Advisory Committee 

June 3, 2021
ICE ESG 

Solutions 
With ESG solutions across the 

investment lifecycle ICE connects 

people to opportunity to create 

insights and drive sustainable decisionmaking. 
15 | CONFIDENTIAL

Our track record of creating sustainable products 

and solutions 

2000

ICE formed from 

predecessor company, 

Continental Power 

Exchange (CPEX), 

which was acquired in 

1997 to build an 

electronic, transparent 

energy marketplace

2003

ICE and the Climate 

Exchange launch 

the Chicago Climate 

Futures Exchange 

(CCFE), listing 

futures contracts for 

carbon offsets. 

2004

ICE and the Climate 

Exchange launch the 

Chicago Climate 

Futures Exchange 

(CCFE), listing 

futures contracts for 

carbon offsets. 

2005

ICE Futures Europe lists 

futures and options 

contracts based on EU 

allowances, and futures 

based on international 

offsets issued by the 

UN’s Clean Development 

Mechanism.

2008

ICE platform lists swaps 

contracts based on 

Regional Greenhouse 

Gas Initiative (RGGI) 

allowances

2009

ICE launches 

Renewable Energy 

Certificate (REC) 

swaps contracts. The 

contracts allow 

investors to trade 

megawatt-hours (MWh) 

of renewable energy. 

2010

ICE expands reach in 

emissions markets with 

the acquisition of 

Climate Exchange and 

becomes global leader 

in carbon futures and 

options markets.

2012

ICE Futures U.S. lists 

futures and options 

contracts based on 

California Carbon 

Allowances, REC and 

RGGI allowances.

ICE Futures Europe 

lists futures and options 

contracts based on 

European Union 

Aviation Allowances

2013

NYSE lists the only 

publicly traded green 

REIT, Hannon Armstrong 

(NYSE: HASI). 

ICE Futures Europe 

begins conducting Phase 

III EUA auctions on behalf 

of the U.K. Government.

2014

The ICE BofA Green 

Bond Index (Ticker 

GREN), administered by 

ICE Data Indices, LLC, 

launches. Expands in 

Asia with Singapore 

futures exchange and 

clearing house.

2014

ICE Futures Europe 

begins conducting 

European Union 

Aviation Allowances 

auctions on behalf of 

the U.K. Government. 

2015

NYSE joins the 

Sustainable Stock 

Exchange Initiative. 

2019

AUM in sustainable 

ETFs listed on the NYSE 

surpasses $5 billion. 

ICE Futures U.S. 

launches the first suite of 

ESG derivatives based 

on MSCI indices.

2019

NYSE addresses the 

need for more diverse 

leadership at board level 

by launching the NYSE 

Board Advisory Council. 

2020

ICE Data Services expands its 

range of ESG indices with the 

launch of ICE Global Carbon 

Futures Index, Corporate ESG 

Indices and the Global 

Government Carbon Reduction 

Indices

ICE Climate Risk launches 

ICE ESG Reference Data 

launches

2020

NYSE launches a series of 

entrepreneurial boot camps designed 

specifically to support minority 

business owners and entrepreneurs 
16 | CONFIDENTIAL

Sustainable markets

ICE Exchanges power global markets

Global leadership

■ A leader in environmental markets for nearly two 

decades. Today, our environmental markets span 

Europe and North America

■ ICE partnered with MSCI to launch the first suite of 

futures referencing MSCI ESG indices

■ NYSE-listed companies currently attract 80% of all US 

ESG-focused investment capital

Asset Classes

■ Carbon

■ Green attribute 

■ ESG equity derivatives 

■ NYSE ESG ETFs
Environmental 

portfolio
18 | CONFIDENTIAL

Global environmental markets

ICE Environmental Markets

Carbon

Allowances

EU 

Allowance 

(EUA)

UK 

Allowance 

(UKA)

California 

Carbon 

Allowance 

(CCA)

Regional 

Greenhous

e Gas 

Initiative 

(RGGI)

Offsets

Certified 

Emission 

Reduction

(CER)

California 

Carbon 

Offset 

(CCO)

Green

Renewable fuels

Biodiesel & 

Ethanol

Low Carbon 

Fuel 

Standard 

(LCFS)

Renewable 

Identification 

Number 

(RIN)

Renewable 

electricity

Renewable 

Energy 

Certificate 

(REC)

ICE has the largest and most liquid environmental markets in the world 

18
19 | CONFIDENTIAL

Market size

• Annual carbon allowance trading on ICE is ~40% 

of the world’s total annual emissions footprint

• ~14 Gigatonnes of carbon trade on ICE annually

• ~$3 billion notional per day

• ~60 million tonnes of carbon trade on ICE a 

day

• ~95% of all globally traded environmental futures 

and options trade on ICE

• ~$100 billion notional open interest in EU 

Carbon

• ~$10 billion notional open interest in US 

Carbon

ICE has the largest and most liquid environmental markets in the world

Emissions per region and traded on ICE Key Statistics

237 

424 

463 

1,162 

1,711 

1,760 

2,654 

3,445 

5,416 

10,065 

11,714 

12,120 

13,711 

36,573 

ICE RGGI

California

RGGI

Japan

Russia

ICE CCA

India

EU

US

China

ICE EUA

Rest of World

ICE Total

World

2018 emissions per country/region in MtCO2e from IEA

Emissions traded on ICE over the last year (250 

trading days) in MtCO2e (2020 figures)
20 | CONFIDENTIAL

2021 Highlights

Open interest (OI) in ICE’s environmental complex is up 14% year-over-year at approximately 2.83 

million lots 

Europe

■EUA ADV +17%

■EUA options OI record 

at 804,000 lots

USA

■RGGI ADV +75% 

■US RECs OI +15%

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

2016 2017 2018 2019 2020 2021

EUA ADV (million tonnes) 
21 | CONFIDENTIAL

2

3 4

Voluntary initiatives

A blueprint for corporate action on climate and nature

Source:

Beyond Science Base Targets: A blueprint for corporate action on climate and nature. World Wide Fund For Nature 

(formerly World Wildlife Fund), Gland, Switzerland and Boston Consulting Group
22 | CONFIDENTIAL

Voluntary carbon offset market

Voluntary markets are small in comparison to compliance markets

0

2,000

4,000

6,000

8,000

10,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Volume (MtCO2e)

Voluntary Market CER CCA EUA

0

500

1,000

1,500

2,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Volume (MtCO2e)

Voluntary Market CER CCA

2017 2018 2019

Project Types Volume 

(MtCO2e)

Average 

Price ($)

Value ($ 

millions)

Volume 

(MtCO2e)

Average 

Price ($)

Value ($ 

millions)

Volume 

(MtCO2e)

Average 

Price ($)

Value ($ 

millions)

Forestry and Land Use 16.6 3.4 63.4 50.7 3.2 171.9 36.7 4.3 159.1

Renewable Energy 16.8 1.9 31.5 23.8 1.7 40.9 42.4 1.4 60.1

Waste Disposal 3.7 2 7.4 6.1 4.8 29.5 7.3 2.5 18

Household Devices 2.3 5 11.8 4.5 2.2 10 6.4 3.8 24.8

Chemical Process/Indust. Manufactering 2.6 1.9 4.9 2.8 2.8 7.8 4.1 1.9 7.7

Energy Efficiency/Fuel Switching 1.1 2.1 3.3 2.5 3.1 7.9 3.1 3.9 11.9

Transportation 0.1 2.9 0.2 0.3 1.7 0.5 0.4 1.7 0.7

Source: Ecosystems marketplace
23 | CONFIDENTIAL

ICE carbon futures index (or underlying futures)

Policy makers, corporates, banks, asset managers, etf issuers

■Carbon benchmarking

– Shadow carbon pricing

– Internal carbon pricing

■Carbon as asset class

– Portfolio diversification

– Portfolio hedge against transition risk

■Boost ESG profile

– Asset managers or corporates bot 

subject to compliance obligations can 

buy, hold and retire them voluntarily 

reducing the overall cap of an ETS

 $-

 $5.00

 $10.00

 $15.00

 $20.00

 $25.00

 $30.00

 $35.00

 $40.00

 $45.00

1/2/2014 1/2/2015 1/2/2016 1/2/2017 1/2/2018 1/2/2019 1/2/2020 1/2/2021

ICECRBN Global Carbon Price

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

1/2/2014 1/2/2015 1/2/2016 1/2/2017 1/2/2018 1/2/2019 1/2/2020 1/2/2021

ICECRBN Contract Weights

EUA Weight CCA Weight RGGI Weight
24 | CONFIDENTIAL

This presentation contains information that is confidential and proprietary property and/or trade secret of Intercontinental Exchange, Inc. and/or its affiliates, is not to be published, 

reproduced, copied, disclosed or used without the express written consent of Intercontinental Exchange, Inc. and/or its affiliates.

This presentation is provided for informational purposes only. The information contained herein is subject to change and does not constitute any form of warranty, representation, or 

undertaking. Nothing herein should in any way be deemed to alter the legal rights and obligations contained in agreements between Intercontinental Exchange, Inc. and/or any of its 

affiliates and their respective clients relating to any of the products or services described herein. Nothing herein is intended to constitute legal, tax, accounting, investment or other 

professional advice.

Intercontinental Exchange, Inc. and its affiliates, makes no warranties whatsoever, either express or implied, as to merchantability, fitness for a particular purpose, or any other matter. 

Without limiting the foregoing, Intercontinental Exchange, Inc. and its affiliates makes no representation or warranty that any data or information (including but not limited to evaluations) 

supplied to or by it are complete or free from errors, omissions, or defects.

Securities products and services are offered through ICE Bonds Securities Corporation member FINRA, MSRB, NFA and SIPC or TMC Bonds, L.L.C member FINRA, MSRB and SIPC. The 

information found herein, has been prepared solely for informational purposes and should not be considered investment advice, is neither an offer to sell nor a solicitation of an offer to 

buy any financial product(s), is intended for institutional investors only and is not intended for retail customer use. Credit Default Swaps (CDS) products and services offered through 

Creditex LLC. 

Fixed income evaluations, continuous evaluated pricing, end-of-day evaluations, evaluated curves, model-based curves, and Fair Value Information Services related to securities and any 

other investment advisory services with respect to securities are provided in the US through ICE Data Pricing & Reference Data, LLC and internationally through ICE Data Services entities 

in Europe and Asia Pacific. ICE Data Pricing & Reference Data, LLC is a registered investment adviser with the US Securities and Exchange Commission. Additional information about ICE 

Data Pricing & Reference Data, LLC is available on the SEC’s website at www.adviserinfo.sec.gov. A copy of ICE Data Pricing & Reference Data, LLC’s Form ADV is available upon request.

ICE Data Services refers to a group of products and services offered by certain Intercontinental Exchange, Inc. (NYSE:ICE) companies and is the marketing name used for ICE Data 

Services, Inc. and its subsidiaries globally, including ICE Data Indices, LLC, ICE Data Pricing & Reference Data, LLC, ICE Data Services Europe Limited and ICE Data Services Australia Pty 

Ltd. ICE Data Services is also the marketing name used for ICE Data Derivatives, Inc., ICE Data Analytics, LLC certain other data products and services offered by other affiliates of 

Intercontinental Exchange, Inc. (NYSE:ICE).

Trademarks of Intercontinental Exchange, Inc. and/or its affiliates include: Intercontinental Exchange, ICE, ICE block design, NYSE, ICE Data Services, ICE Data and New York Stock 

Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located at 

www.intercontinentalexchange.com/terms-of-use. BofA® is a registered trademark of Bank of America Corporation licensed by Bank of America Corporation and its affiliates ("BofA"), and 

may not be used without BofA's prior written approval. Other products, services, or company names mentioned herein are the property of, and may be the service mark or trademark of, 

their respective owners. 

© 2021 Intercontinental Exchange, Inc. 

Limitations