Intercontinental Exchange (NYSE:ICE) plans to launch its first nature-based solutions carbon credit futures contract.
Shares of ICE slightly decline 0.3% in pre-market trading.
The new futures contract is expected to launch in Q1 of next year, the company says.
It will be traded and cleared by ICE in London, and will physically deliver credits certified under Verra's Verified Carbon Standard ("VCS") and Climate, Community and Biodiversity Standard Programs.
Each futures contract will be equivalent to 1K eligible VCS credits, with each credit equal to one metric ton of greenhouse gas emissions.
"Environmental markets can help fund the cultivation and preservation of natural capital, and the new nature-based solutions futures contract will allow the market to value natural assets in the agriculture, forestry and other land use sectors," said Gordan Bennett, managing director of utility markets at ICE.
In addition, ICE Benchmark Administration forms the ICE Carbon Oversight Committee to provide independent governance and oversight of ICE's activities in the voluntary carbon markets.