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Connect to a global environmental complex

Sustainable markets to price climate risk. Where there is risk, there is opportunity. Climate risk mitigation is impacting the evolution of the energy landscape. The energy transition is a long-term phenomenon, underpinned by a market-based economy that can deliver cost-effective and scalable solutions.

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U.K. Emissions Trading Scheme

The U.K. was the first major economy to legislate for net zero emissions, and has been a leader in market-based mechanisms to price the broader costs of pollution.

Milestones in the U.K.’s climate leadership include a pilot cap and trade program, prior to phase one of the EU Emissions Trading Scheme (EU ETS) in 2005. When the price signal under the EU ETS was not strong enough to incentivize a reduction in emissions, the U.K. introduced the Carbon Price Support mechanism, which has been credited with the near removal of coal in the country’s electricity generation merit order.

The U.K. Emissions Trading Scheme (UK ETS) replaces the country’s participation in the EU ETS and supports the aim of its carbon pricing policy. Our auctions and futures contracts will support the continuity of emissions trading for businesses in the U.K.

Auctions

Held every second Wednesday, ICE hosts U.K. ETS emissions auctions on behalf of the U.K. Government’s Department of Business, Energy and Industrial Strategy (BEIS).

How to Participate

Frequently Asked Questions

UKA Auction

Monthly & Daily Futures

U.K. Allowance (UKA) monthly futures contracts are available and daily futures will launch on May 21. Establishing a secondary market and critical risk management for market participants.

UKA Daily Futures

UKA Monthly Futures

Environmental Markets & Indices

ICE has been a leader in environmental markets for nearly two decades. Today, our environmental markets span Europe and North America — the world’s most liquid environmental markets.

Corporates subject to carbon cap and trade programs and renewable fuel standards use our markets to meet obligations and manage their risk in the most cost-effective way. Markets participants can deliver carbon allowances, carbon offsets and renewable energy certificates into a range of registries in Europe and North America.

A growing number of corporates are signing up for voluntary commitments around the world. This means increasingly diverse stakeholders can use ICE’s markets to offset their carbon footprint, invest in green attributes or benchmark their internal cost of carbon. Policy makers rely on price signals from environmental markets to gauge the effectiveness of their programs and ensure desired outcomes — such as driving investment in renewables and the use of less-carbon intensive fuels. Investors can use the price signals from ICE markets and indices to help assess climate transition risk in their portfolios, and then access liquidity pools for managing risk and allocating capital to benefit from energy transition opportunities.

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ICE Sustainable Indices

ICE Data Indices has a range of solutions for fixed income sustainable benchmarks that account for Environmental, Social and Governance (ESG) factors in addition to other criteria. Our Sustainability Indices, which include ESG constrained indices, carbon reduction indices and green bond indices, combine our fixed income capabilities with popular ESG strategy overlays.

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