IEX says it has become India's first carbon-neutral power exchange

IEX says it is committed to contributing towards fulfilling India's net zero emissions target by creating an ecosystem for the reduction of emissions

India's leading energy trading platform IEX said on Wednesday it had become the country's first carbon-neutral power exchange using market-based tradable instruments to offset its carbon emissions.

To reduce its carbon footprint, the Indian Energy Exchange (IEX) said in a statement that it voluntarily cancelled the certified emissions reductions (CERs) from clean projects registered under the Clean Development Mechanism of the United Nations Framework Convention on Climate Change. A CER is a certificate issued by the United Nations to member countries for preventing one tonne of carbon dioxide emissions. 

"We are honoured to achieve another milestone as a carbon-neutral exchange, as we further our commitment towards India's Net Zero ambitions. This achievement is yet another milestone in our 15-year journey towards enabling India's energy transition in a sustainable manner," said SN Goel, chairman and managing director at IEX.

According to the recent UNEP 2022 report, global GHG emissions must be reduced by 45% by 2030 to get on track to limit global warming to 1.5 degrees. The total global GHG emissions were estimated at around 53 GTCO2eq in 2021.

The recently concluded COP27 reiterated the need to ramp-down GHG emissions. India has set a national target of net zero emissions by 2070. Prime Minister Narendra Modi announced India's pledge at the COP26 Glasgow Summit in November 2021.

Net zero, or becoming carbon neutral, simply means not adding to the amount of greenhouse gases already present in the atmosphere.

IEX said it is committed to fulfilling India's net zero emissions target by creating an ecosystem for reducing emissions.

In becoming India's first carbon-neutral power exchange, IEX had EKI Energy as the sustainability partner, which provided it with advisory and consultancy services in this climate action exercise, the exchange added.