Intercontinental Exchange has announced that ICE Benchmark Administration Limited (IBA) is collaborating with Space Intelligence to launch the ICE Commodity Traceability Service (ICE CoT).
Space Intelligence is a provider of high-accuracy nature mapping data, enabling zero deforestation and mass restoration of biodiverse forests globally. The firm supports the development and review of forest carbon projects and compliance with nature impact disclosures.
ICE operates world’s largest cocoa and coffee markets
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.
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. IBA plans to launch ICE CoT prior to the end of 2024.
EU wants “deforestation-free” and lawfully produced commodities
ICE Commodity Traceability Service (ICE CoT) facilitates 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.
Clive de Ruig, President of IBA, said: “We are excited to be working with Space Intelligence on the continued build-out of ICE CoT. 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.”
Professor Ed Mitchard, Co-founder and Chief Scientist at Space Intelligence, commented: “The EUDR means stakeholders across commodity markets need to be provided with trust in the compliance of the supply of goods entering the EU, which can be ensured by audit-grade mapping data supporting the verification process. Our process generates mapping data that meets the stringent requirements of the EUDR, developed from decades of experience in remote sensing research and integrating ecology expertise with machine learning to achieve accuracy on a geographical scale. Our collaboration with IBA is a testament to our shared goal of ensuring customers can meet the requirements of the EUDR.”
