NER300 sales strengthened by EIB membership of EEX and ICE
The European Investment Bank has become a member of the European Energy Exchange, EEX and ICE Futures Europe, ICE. Admission for trading on the two exchanges will enhance sales methods by the European Investment Bank under the NER300 programme. IT preparations are complete and on exchange emission allowance sales are expected to begin in the coming days.
The NER300 initiative is the world’s largest funding programme for carbon capture and storage demonstration projects and innovative renewable energy technologies. The long-term lending institution of the European Union has agreed to sell a total of 300 million EU emission allowances on behalf of the European Commission. Exchange membership will allow both direct and auction sales on the two exchanges, and allows greater flexibility compared with OTC trading alone. The EIB has become a member of both the EEX Derivatives Market for Emissions Allowances and ICE Futures Europe.
The European Investment Bank has also been admitted as a clearing member by European Commodity Clearing and ICE Clear Europe. Being a clearing member will allow the European Investment Bank to directly settle and clear all transactions made on the exchange.
“Confirmation of EIB’s memberships on EEX and ICE greatly assists the European Investment Bank monetisation activity under the NER300 initiative. Access to the regulated markets of EEX and ICE will broaden sales channels to allow direct screen trades, OTC exchange cleared transactions and auctions in the near future. This will increase on-exchange liquidity and the Bank’s access to market participants” says Simon Brooks, European Investment Bank Vice President.
“We welcome the EIB’s recognition of the reliability of our trading and settlement processes to the NER300 programme and the trust placed in us. The EIB membership reflects the strong cooperation of EEX as exchange under public law with public authorities”, emphasises Chief Executive Officer, EEX, Peter Reitz.
“The EIB’s membership of ICE Futures Europe will bring added transparency and liquidity to the sale of EU Emissions Allowances under the NER300 programme,” said David Peniket, President, ICE Futures Europe. "We are very pleased to welcome the EIB as a member to the Exchange.”
The EIB started sales of carbon allowances that can be used in phase 3 of the EU Emission Trading System on behalf of the European Commission on December 5, immediately following delivery of 300 million allowances. All transactions so far have been executed as OTC forward transactions as previously anticipated.
The European Energy Exchange (EEX) develops, operates and connects secure, liquid and transparent markets for energy and related products on which power, natural gas, CO2 emission allowances and coal are traded. Clearing and settlement of all trading transactions are provided by the clearing house European Commodity Clearing AG (ECC).ICE Futures Europe provides price discovery, transparency and liquidity for the emissions market, with over 100 global trading members and average daily volumes of over 31,000. ICE’s emissions products offer an effective means of complying with the requirements of the EU Emissions Trading Scheme (ETS) and the Exchange continues to innovate in order to meet demand for new products and areas of compliance. ICE Futures Europe contracts are cleared via ICE’s European Clearing House; ICE Clear Europe.