By Mathew Carr
Aug. 8, 2022 — Intercontinental Exchange Inc., the biggest commodity exchange for carbon markets, has agreed to auction another type of carbon credit after selling billions of euros worth of EU co2 allowances for Britain.
ICE is expanding in what’s set to be one of the most valuable global commodities of the 21st century…if not the most valuable.
Carbon credits will be worth a lot because there’s a real shortage of emission reductions — scarcity caused by cowardly governments’ failure to address the climate crisis in a real way until now.
Polluters don’t pay to pollute so they keep making the crisis worse. Only about a quarter of emissions around the world face carbon pricing.
Taxpayers miss out on all that revenue.
There’s a huge shortage of emission credits— created by companies that demonstrate their technology is innovative enough to deserve those credits.
The crypto asset market has no real scarcity.
Carbon markets do.
Indeed, many markets are created under false pretences — because of manufactured crisies.
Take the deliberately rigged oil market.
Take the drug market in the U.S., where real solutions like healthy eating are shunned or downplayed.
Take weapons — also rigged, by geopolitical demonisation.
Working taxpayers suffer, suffer and then suffer some more.
When regulators finally give buyers clearer signals about what real emission reductions look like under the UN’s Paris deal….the market will take off.
That’s happening now. One of the last jigsaw pieces in the puzzle is US climate action. That’s now all but locked in.
(I’m not completely sure it is enough because America is also still seeking to expand in fossil fuels. That will, however, make GHG securities even more valuable.)
China’s also delaying climate action and now the two biggest superpowers are not even talking to each other about it.
Could it be that the USA (and China?) are making the climate crisis worse so they can make billions of dollars solving a problem that never needed to occur?
Unedited press release (emphasis added):
ICE to Host Auctions of Nature Based Carbon Removal Credits
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced that it plans to begin carbon credit auctions for GreenTrees, a global leader in reforestation.
GreenTrees is the number one reforestation program operator in the United States by credit issuance and wholly owned by ACRE Investment Management LLC. ICE plans to host two carbon credit auctions for GreenTrees in the fourth quarter of 2022.
Each auction will offer 250,000 Emission Reduction Tons (ERTs) from GreenTrees’ reforestation projects. The ERTs offered for sale by GreenTrees are issued by the American Carbon Registry (ACR) with each ERT representing the removal from the atmosphere of the equivalent of one metric ton of carbon dioxide.
“Forestation is nature’s technology for removing carbon and represents the most viable, scalable, cost-effective means for answering climate change now and in the future. GreenTrees is the only carbon removal project that is open to small, medium and large landowners, covering acres from as low as 7 acres, up to 3,500 acres,” says Chandler Van Voorhis, Manager, and Co-Founder of GreenTrees, LLC.
“By working with ICE, the world’s leading environmental marketplace, we can now connect one of the largest global networks of companies to everyday landowners, who are our first responders to climate change.”
“Leveraging our long history in environmental markets and our global customer base, our goal for the carbon credit auctions is to bring price discovery and transparency to the primary market, allowing buyers to invest in high quality carbon credits from leading carbon credit project developers,” said Gordon Bennett, Managing Director of Utility Markets at ICE.
“As companies increasingly recognize their emissions footprint as liabilities, recognizing the cost of pollution in their business models, companies will invest in emissions reductions and removals. As demand increases for these assets, price risk management will become increasingly important.”
ICE has operated environmental markets for almost two decades and offers customers access to the largest and most liquid environmental markets in the world. During this time, over 100 billion tons of carbon allowances, over 250 million renewable energy certificates, three billion carbon credits, and the equivalent of over 1.4 billion Renewable Identification Numbers have traded on ICE.
ICE has a ten-year history in conducting carbon auctions, having conducted carbon allowance auctions on behalf of the UK Government since 2012.
Further details on the carbon credit auctions, including how to take part, will be announced in due course. In the meantime, please contact Sales-UtilityMarkets@ice.com.
GreenTrees is wholly owned by ACRE Investment Management, LLC (AIM). The AIM platform is designed to both deploy the ACRE mechanism across a portfolio of companies while driving scaled impact into the restoration economy. The purpose of GreenTrees is to answer climate change through a revolution in reforestation. With 128 years of carbon removal experience, and more than 133,000 acres of reforestation cleaning the air, purifying the water, and providing critical habitat, the parent company’s new ACRE IO platform will enable reforestation projects all over the world.
About Intercontinental Exchange
Intercontinental Exchange, Inc.(NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that offer our customers access to mission-critical workflow tools that increase transparency and operational efficiencies. We operate exchanges, including the New York Stock Exchange, and clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income data services and execution capabilities provide information, analytics and platforms that help our customers capitalize on opportunities and operate more efficiently. At ICE Mortgage Technology, we are transforming and digitizing the U.S. residential mortgage process, from consumer engagement through loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 — Statements in this press release regarding ICE’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE’s Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on February 3, 2022.