ICE Launching Airline Carbon Credit Futures Market
(25 September 2023 – Global) Intercontinental Exchange (ICE) has announced plans to launch a futures contract for carbon credits with the International Civil Aviation Organisation (ICAO).
The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is the first global market-based carbon credit system, targeted at reducing emissions from international aviation.
CORSIA is part of multiple policy measures taken by the ICAO and allows airline operators to offset an amount of carbon dioxide emissions by retiring carbon credits. The planned launch date for the physically delivered futures contract is 9 October subject to governance and regulatory approval.
“With the pilot phase complete and the start of the first phase of CORSIA in sight, market participants requested an ICE futures contract which airline operators can use to meet their offsetting obligations under CORSIA. Underpinned by a policy framework provided by ICAO, and with a natural pool of buyers in the form of airline operators, we believe this contract will appeal to a wide range of market participants” stated ICE Managing Director of Utility Markets, Gordon Bennett.