ESG investing considers the return on investment of different sustainable practices that are designed to contribute to a low carbon future. Carbon pricing is a key component of navigating the latest ‘energy transition’ that is the long-term shift in the fuel mix to a net-zero-carbon economy.
The ICE Carbon Futures Index Family is made up of pricing from the four most actively traded carbon markets in the world: the European Union Emissions Trading Scheme (EU ETS), which started in 2005, the Western Climate Initiative (California Cap and Trade Program), which started in 2013, the Regional Greenhouse Gas Initiative (RGGI), which was established in 2009, and the UK Emissions Trading Scheme (UK ETS), which was created in 2021. Together these markets represent some of the largest regional economies in the world, and the secondary futures market for those programs which trade on ICE’s futures markets make up the majority of the volume in all carbon-based futures contracts.
The index family is comprised of single contract indices holding exposure to the ICE EUA, ICE CCA, ICE RGGI and ICE UKA futures contracts, as well as a global carbon index that holds exposure to all four contracts. The index is available in excess return, total return, and spot return variants and is based off the calculation methodology found in the existing ICE BofA Commodity Index Methodology. Individual index methodology factsheets can be found at the links in the table below.
|Index Name||Excess Return||Total Return||Spot Return||Methodology|
|ICE Global Carbon Futures Index||ICECRBN||ICECRBNT||ICECRBNS||Methodology|
|ICE EUA Carbon Futures Index||ICEEUA||ICEEUAT||ICEEUAS||Methodology|
|ICE CCA Carbon Futures Index||ICECCA||ICECCAT||ICECCAS||Methodology|
|ICE RGGI Carbon Futures Index||ICERGGI||ICERGGIT||ICERGGIS||Methodology|
|ICE UKA Carbon Futures Index||ICEUKA||ICEUKAT||ICEUKAS||Methodology|
Gain exposure to four of the world’s largest and most liquid carbon markets in one tradable instrument via the ICE Global Carbon Index Futures contract.