Intercontinental Exchange, Inc. (NYSE:ICE) today announced that ICE Benchmark Administration Limited (IBA) is collaborating with Space Intelligence, a provider of high accuracy nature mapping data, to launch the ICE Commodity Traceability Service (ICE CoT).
ICE CoT is a technology platform designed to facilitate the continued frictionless trade of physical cocoa and coffee by automating the process of submitting, storing, validating and sharing due diligence information mandated by the European Union’s Deforestation Regulation (EUDR). The EUDR is designed to reduce the EU’s impact on global deforestation and forest degradation by requiring proof that specified goods entering or sold in the EU are “deforestation-free” and lawfully produced. Europe is the largest market for cocoa and coffee worldwide.
“We are excited to be working with Space Intelligence on the continued build-out of ICE CoT,” said Clive de Ruig, President of IBA. “As one of the world’s foremost experts in forest mapping using satellite data, their expertise in delivering highly accurate and comprehensive data will be critical to providing information on whether cocoa and coffee farm plots are deforestation-free.”
“Space Intelligence’s geospatial mapping capabilities will be integrated into ICE CoT, clearly indicating areas in cocoa and coffee producing countries that have been deforested post-December 31, 2020, and that are not eligible for the production of EUDR-compliant goods. This geospatial mapping data will work in tandem with ICE CoT’s farm and physical flow validation methodologies, utilizing farm geolocation and traceability information throughout the supply chain to support the tradability of commodities within the EU,” continued de Ruig.
In June 2024, ICE CoT commenced a pilot phase for validating cocoa and coffee farm geolocation data using a methodology developed by Meridia.
The platform allows companies to upload farm plot coordinates and run a series of validation checks on the geolocation data. IBA expects to pilot the validation of physical flow data related to the movement, including merging or splitting, of cocoa and coffee parcels along the supply chain to its ultimate use or export, along with lawful production data, in the coming months.
ICE provides the largest markets in the world to trade cocoa and coffee through its benchmark Cocoa, London Cocoa, Coffee C® and Robusta Coffee futures and options markets. Last year the equivalent of over 500 million tons traded on ICE’s cocoa and coffee markets.
IBA plans to launch ICE CoT prior to the end of 2024. The platform remains subject to further testing, system and data availability, and any regulatory contingencies.