IEX forms subsidiary to explore business opportunities in carbon market

Indian Energy Exchange (IEX) on Tuesday announced setting up a wholly-owned subsidiary, International Carbon Exchange Private Ltd (ICX), to explore business opportunity in the voluntary carbon market.

The ICX will enable participants to buy and sell voluntary carbon credits at competitive prices through its transparent & reliable platform and facilitate reduction of global GHG (green house gases) emission by 45 per cent by 2030 to get on track to limit global warming to 1.5 degrees, an IEX statement said.

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.

S N Goel, Chairman & Managing Director, IEX stated that the ICX 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.