The verified carbon credit markets enable companies, organisations and individuals to buy, hold, sell and retire carbon credits issued by registries in respect of projects that are designed and developed to remove, reduce, avoid, sequester or mitigate emissions of greenhouse gases (GHGs) into the atmosphere. These markets are widely considered to have an important role to play in achieving global GHG reduction goals.
Carbon credits are issued for given time periods, or “vintages”, in respect of registered projects from around the world, are audited or certified in accordance with third party carbon standards, and are then recorded and held in registries operated in connection with such standards. The registries are the official recordkeeping systems for these carbon credits and track their generation, issuance, transfer, retirement, conversion and/or cancellation.
For the carbon credit markets to continue to grow in a scalable and sustainable way, standardised, reliable and robust reference data that can be widely used and adopted by market participants is required.
ICE Benchmark Administration Limited (IBA), one of the world’s most experienced administrators of regulated benchmarks, is launching ICE CRED as a reference data service for the carbon credit markets. IBA has leveraged its capabilities and high standards of data management and robust governance with the aim to normalise, standardise, aggregate and supplement public data available from the registries in respect of carbon credits.
ICE CRED is designed to support carbon credit market participants throughout the trading lifecycle, providing the opportunity to reduce operational risk and cost and promote greater scalability in their carbon credit trading operations.
IBA imports data in respect of carbon credits from registries daily, and uses organisational data management to normalise, standardise and aggregate the data. IBA currently utilises in excess of 50 bespoke normalisation routines and alerts (including consistency checks) that are designed to enhance the integrity of the data and provide additional value to market participants. ICE CRED also supplements the registry data with additional fields to support market participants’ trading operations.
ICE CRED allocates an ‘ICE CREF’ reference identifier in respect of carbon credits issued by registries in respect of each project and project vintage, providing a universal, standardised reference code across registries. The ICE CREF is included in the daily ICE CRED reference data files, which are made available via the ICE SFTP server to subscribers to download into their trade management and downstream systems. ICE CRED data is also available via ICE Chat and the ICE Report Center.
ICE CRED is designed to support the 2022 International Swaps and Derivatives Association’s (ISDA) Verified Carbon Credit Transactions Definitions, which outline terms for the secondary market trading of physically settled carbon credit spot, forward and option transactions. In addition, ICE CRED aims to support the actions set out by the International Organization for Securities Commissions (IOSCO) to contribute to sustainability disclosure standards benefitting issuers and investors, and to promote well-functioning carbon markets.
By establishing comprehensive and robust governance and oversight functions, IBA has enhanced the confidence in and integrity of the benchmarks it administers in order to give market participants confidence in the information they depend upon. IBA is applying the same rigorous frameworks and processes to the governance of ICE CRED.
IBA licenses ICE CRED information to users for internal informational and operational purposes only. Firms wishing to subscribe to the ICE Carbon Reference Entity Data Service (ICE CRED) should contact [email protected]. ICE CRED information may not be accessed, or used, or distributed without an express written licence from IBA or for any purpose beyond those expressly permitted in the relevant licence.
ICE CRED is a reference data service which normalises, standardises, aggregates and supplements carbon credit reference data from global registries. None of IBA, Intercontinental Exchange, Inc. (ICE) or any of its or their affiliates makes any claim, prediction, warranty or representation whatsoever, expressly or impliedly, as to the timeliness, accuracy or completeness of any information in ICE CRED (including for all purposes information obtained from the registries), the results to be obtained from the use of such information, or as to the appropriateness or suitability of any such information for any particular purpose to which it might be put. Carbon credits are originally documented or created, and recorded, by third parties unaffiliated with IBA, ICE or any of its or their affiliates. Nor are carbon credits documented, created or created on behalf of IBA, ICE or any of its or their affiliates. To the fullest extent permitted by applicable law, none of IBA, ICE, or any of its or their affiliates will be liable in contract, restitution or tort (including negligence), for breach of statutory duty or nuisance, or under antitrust laws, for misrepresentation or under any other cause of action, in respect of: (a) any inaccuracies, errors, omissions, delays, failures, cessations or changes (material or otherwise) in any information in ICE CRED, or for any damage, expense or other loss (whether direct or indirect) you may suffer arising out of or in connection with such information or any reliance you may place upon it; (b) claims in respect of title and authenticity, property status or good and valid ownership of any carbon credits; (c) any losses arising as a result of a carbon credit not having any redeemable value or utility or a carbon credit being impaired; (d) any impairment in the validity, enforceability, marketability or commercial value of any carbon credit, whether by virtue of any applicable laws, any verification system or carbon standard, the action or inaction of any governmental authority, verifying body or other organisation or body, or otherwise; (e) any losses incurred as a result of the receipt, acceptance or existence of fraudulent, forged, improperly executed, false, incorrect, unenforceable, negligently prepared or invalid carbon credit or any document relating to a carbon credit; (f) claims in respect of the project or area to which a carbon credit may relate, including whether a carbon credit represents a project which has resulted in any reduction or removal of greenhouse gases (GHGs) or other objective; (g) any losses arising from or relating to any event or condition occurring or existing whether past, present or future, at any property, location or other area (including, without limitation, any land, environmental, biological, natural or man-made structures above or below ground, air within or outside any natural or man-made structure, surface or ground water, waterway, marine waters, and soil and sub-soil strata) to which a carbon credit may relate, including, without limitation, any hazardous material contamination, deforestation, fire, carbon-releasing event, or other event or condition; (h) any losses arising from any act or omission of any person providing verification in respect of a carbon credit under any program, certification standard or carbon standard; (i) claims in respect of nationalisation, expropriation, or other governmental actions or regulation of any carbon credit, or of the environment, exchange or currency controls or restrictions on the transfer of property or the execution of transactions for carbon credits; (j) claims in respect of any losses incurred as a result of any carbon credits or document relating to a carbon credit not being freely transferable or deliverable without encumbrance; (k) any reputational loss or other loss associated with holding a carbon credit; (l) claims in respect of the retirement process or any associated event or circumstances affecting a carbon credit; (m) claims in relation to a registry or carbon standard, the accuracy of that registry or carbon standard, the purported transfer of carbon credits through the registry, any losses arising on the insolvency of a registry or carbon standard, a breach of applicable law by a registry or carbon standard, or otherwise in respect of the performance, non-performance or operation of the registry or carbon standard; (n) an entry on a registry not actually referring to an existing or valid carbon credit; (o) the performance or non-performance by a registry or carbon standard, including any issues arising with regards to legal title to, and physical delivery of, a carbon credit; (p) any losses arising from or relating to the failure of any record in an account with a registry to constitute a carbon credit; (q) claims in respect of any person's breaches or failure to comply with applicable registry rules or carbon standard rules; (r) without prejudice to the position that carbon credits should be regarded as a property right, for any losses resulting from carbon credits constituting or being found to constitute a mere contractual or other right; or (s) the acceptance of any carbon credit in any market, transaction or compliance programme as having achieved the GHG objectives the carbon credit purports to represent. All implied terms, conditions and warranties, including without limitation as to quality, merchantability, fitness for purpose, title or non-infringement, in relation to such information are hereby excluded to the fullest extent permitted by applicable law.
IBA reserves all rights in ICE CRED and all its rights in the ICE CRED information. ICE and ICE Benchmark Administration are trademarks of IBA and/or its affiliates. All rights in these trademarks are reserved and none of these rights may be used without a written licence from IBA and/or its affiliates, as applicable.
Certain information and data in ICE CRED identified as being in respect of carbon credits registered in a registry may have been reproduced or derived from data in that registry. Where the register is Verra, such data is provided by Verra under license ©2022 Verra.
IBA is authorised and regulated by the Financial Conduct Authority. Operating ICE CRED is not a regulated activity.
Please also read IBA’s benchmark and other information notice and disclaimer.