Environmental risk management is an increasingly important component of business operations. Energy intensive industries face an array of environmental challenges including financial, regulatory, competitive, legal and reputational risks. ICE contracts based on carbon, acid rain and renewable energy products provide a way to hedge exposure and mitigate environmental compliance risk. Environmental derivatives are financial instruments with an underlying value based on tradable environmental assets. Many of ICE’s U.S. environmental products are eligible for cross-margining benefits with ICE’s energy contracts.
|Physically –Settled Contracts||Financially –Settled Contracts|