ICE to Launch CORSIA Carbon Credit Futures Market

Intercontinental Exchange, Inc. announced plans to launch a physically delivered futures contract for carbon credits which the International Civil Aviation Organization (ICAO) considers eligible for use by the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). CORSIA is the first global market-based carbon credit scheme, targeted at reducing emissions from international aviation. CORSIA is part of a basket of policy measures taken by the ICAO and allows airline operators to offset an amount of carbon dioxide emissions by retiring carbon credits. The ICE futures contract will be for use during the first phase of CORSIA covering the 2024 to 2026 compliance period. ICE plans to list a December 2024, December 2025, December 2026, and December 2027 contract, allowing airline operators and other market participants to manage their exposure during each year of the first phase of CORSIA and up to one month before the final compliance deadline at the end of January 2028. The planned launch date for the contract is October 9, 2023, subject to completion of applicable governance and regulatory procedures.