ICE launches nature-based carbon credit futures contract

Verra Mobility

09/05/2022 13:30

LONDON, May 9 (Reuters) - Intercontinental Exchange (ICE)
 ICE.N  said on Monday it had launched a nature-based solutions
carbon credit futures contract to help bring price signals to
the voluntary carbon market.
    Nature-based solution (NBS) carbon credits can be generated
through schemes such as planting trees, agricultural projects or
protecting forests that would otherwise be destroyed.
    "The NBS future is our first contract specifically designed
to measure the carbon sequestration and storage capabilities of
nature, which we hope will be an important valuation tool to
conserve and grow the world's natural capital base," Gordon
Bennett, Managing Director of Utility Markets at ICE, said in a
statement.
    The ICE NBS futures contract for expiry in December 2022
traded at $11.25 per tonne by 1109 GMT, ICE website data showed.
    Many global companies such as oil major Shell have pledged
to reach net zero emissions, and said they will seek to use some
nature-based credits, to help compensate for emission reductions
they are unable to cut from their operations.  urn:newsml:reuters.com:*:nL1N2KH0OP
    "The launch of the ICE Nature-Based Solutions Carbon Credit
Future is another important milestone in bringing more
transparency and scale to the voluntary carbon market," Bill
McGrath, Shell's  SHEL.L  General Manager for Global
Environmental Products said in the ICE statement.
    The new contract was also welcomed by several other
companies such as trading houses Trafigura and Vitol.
    The contract includes carbon credits that have been verified
by non-profit group Verra.

 (Reporting By Susanna Twidale; editing by David Evans)
 ((susanna.twidale@thomsonreuters.com; +44 207 5424753;))