IEX forms subsidiary to explore business opportunities in carbon market

In order to investigate commercial potential in the voluntary carbon market, Indian Energy Exchange (IEX) on Tuesday announced the establishment of a wholly-owned subsidiary, International Carbon Exchange Private Ltd (ICX).

According to an IEX statement, the ICX will make it possible for participants to buy and sell voluntary carbon credits at competitive prices through its transparent and reliable platform, helping to reduce global GHG (green house gas) emissions by 45% by 2030 and put the world on track to keep global warming to 1.5 degrees.

New platform

The new company will facilitate corporates to meet their climate commitments goals.

The Exchange platform will provide a robust market signal for attracting further investments in the sustainable projects and help corporates to allocate capex towards energy transition in most optimum manner, it added.

As per industry estimates, the annual demand for voluntary carbon credit globally is expected to reach around 1.5 Gigatons, with India contributing around 200 million tonnes by 2030, it noted.

The ICX, according to S N Goel, Chairman and Managing Director of IEX, will be India's first voluntary carbon exchange platform.

Earlier this month, IEX became India's first carbon-neutral power exchange, using market-based tradable instruments to offset its carbon emissions, it stated.

With inputs from Agencies.

Published on: Tuesday, December 27, 2022, 03:52 PM IST