CFTC Energy & 

Environmental Markets 

November 7, 2019

Head of Environmental Markets 

Mike Kierstead 

CFTC Energy & Environmental Markets Advisory Committee Meeting 
INTERCONTINENTAL EXCHANGE

builds, operates and transforms 

global markets through information, 

technology and expertise 

CFTC Energy & Environmental Markets Advisory Committee Meeting 2

Markets

Futures, options and OTC markets 

across the EU, US and Asia

Clearing

A global network of clearing houses 

powering market transparency and security 

Data

Unrivalled range of data products 

support critical decision making

Intercontinental Exchange (NYSE: ICE)
CFTC Energy & Environmental Markets Advisory Committee Meeting INTERCONTINENTAL EXCHANGE 3

Macro energy trends 

Decarbonization

Renewable energy markets 

Cap and trade - North America & Europe

Coal Phase out

Biofuels and electrification of transportation
INTERCONTINENTAL EXCHANGE

What is energy?

CFTC Energy & Environmental Markets Advisory Committee Meeting 4

Heating

Natural gas

Electricity

Coal 

Oil

Electricity 

generation

Natural gas

Coal

Renewables

Nuclear

Oil

Transportation

Oil

Natural gas

Electricity

Biofuels

Industrial

Oil

Natural gas
INTERCONTINENTAL EXCHANGE

ICE global environmental complex 

CFTC Energy & Environmental Markets Advisory Committee Meeting 5
INTERCONTINENTAL EXCHANGE

North American environmental markets 

6

Open interest, volume climbs as participants increase their hedging 

CFTC Energy & Environmental Markets Advisory Committee Meeting 

 -

 100,000

 200,000

 300,000

 400,000

 500,000

 600,000

 700,000

 800,000

 900,000

 1,000,000

1/2/2013 1/2/2014 1/2/2015 1/2/2016 1/2/2017 1/2/2018 1/2/2019

Open Interest

CCA RGGI RECs

 -

 50,000

 100,000

 150,000

 200,000

 250,000

Jan-13

Mar-13

May-13

Jul-13

Sep-13

Nov-13

Jan-14

Mar-14

May-14

Jul-14

Sep-14

Nov-14

Jan-15

Mar-15

May-15

Jul-15

Sep-15

Nov-15

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

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Nov-17

Jan-18

Mar-18

May-18

Jul-18

Sep-18

Nov-18

Jan-19

Mar-19

May-19

Jul-19

Sep-19

Monthly Volume

CCA RGGI RECs
CFTC Energy & Environmental Markets Advisory Committee Meeting INTERCONTINENTAL EXCHANGE 7

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

0

500

1,000

1,500

2,000

2,500

3,000

OI

Volume

LCFS Volume and Open Interest

Volume OI

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

17-Jan

17-Feb17-Mar

17-Apr

17-May

17-Jun

17-Jul

17-Aug17-Sep

17-Oct

17-Nov17-Dec

18-Jan

18-Feb18-Mar

18-Apr

18-May

18-Jun

18-Jul

18-Aug18-Sep

18-Oct

18-Nov18-Dec

19-Jan

19-Feb19-Mar

19-Apr

19-May

19-Jun

19-Jul

19-Aug19-Sep

OI

Volume

Carbon Volume and Open Interest

Volume OI

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

0

20,000

40,000

60,000

80,000

100,000

120,000

17-Jan

17-Feb17-Mar

17-Apr

17-May

17-Jun

17-Jul

17-Aug17-Sep

17-Oct

17-Nov17-Dec

18-Jan

18-Feb18-Mar

18-Apr

18-May

18-Jun

18-Jul

18-Aug18-Sep

18-Oct

18-Nov18-Dec

19-Jan

19-Feb19-Mar

19-Apr

19-May

19-Jun

19-Jul

19-Aug19-Sep

OI

Volume

REC Volume and Open Interest

Volume OI

North American 

environmental markets

Open interest, volume by product group
INTERCONTINENTAL EXCHANGE 8

NA Markets EU Emissions 

Global Environmental Market Share

Europe 95%

ADV 43,246 lots 2.7% increase over 2018 

Open Interest is 1,529,844 lots, notional value 

of $38B

Brexit uncertainty weighing on broader EU 

carbon market

ADV 8,653 lots 55% increase over 2018

Open Interest 825k lots 41% increase over

2018 and a notional value of $6.9B

Delivery volume 296k YTD 13% increase

over 2018.

North America 96%

ICE Global Environmental Complex 

30 countries, 20 contracts, global benchmarks

Global market share 

CFTC Energy & Environmental Markets Advisory Committee Meeting 
INTERCONTINENTAL EXCHANGE

Opportunities

• Transportation Climate Initiative (TCI)

- Northeastern ‘Cap and Invest’ tailpipe emissions markets

• Program Linkages

- RGGI (North Carolina, New Jersey, Pennsylvania)

- CCA (Colorado, Nevada, New Mexico, Oregon, Washington, Mexico) 

• CORSIA 

- Carbon emissions from aviation industry

• Article 6

Next steps for environmental markets 

CFTC Energy & Environmental Markets Advisory Committee Meeting 9