Expanding the Most Liquid Environmental Derivatives Markets in the World
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.
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Category: EXCHANGES
ICE-CORP
Source: Intercontinental Exchange
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