IEX forms subsidiary to explore business opportunities in carbon market

Indian Energy Exchange (IEX) on Tuesday said it has formed a wholly-owned subsidiary, International Carbon Exchange Private Ltd. (ICX), to explore business opportunities in the carbon market. The subsidiary company will enable participants to buy and sell voluntary carbon credits at competitive prices through its platform.

Additionally, the International Carbon Exchange will also facilitate corporates to meet their climate commitments goals.

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.

Also, the new entity will facilitate reduction of global GHG (Greenhouse Gas) emission by 45 percent by 2030 to get on track to limit global warming to 1.5 degrees.

India has set a target to net zero emissions by 2070.

The exchange platform will provide a robust market signal to attract further investments in the sustainable projects and help corporates to allocate capital expenditure towards energy transition in the most optimum manner, the company said.

"Establishing a transparent and reliable carbon trading platform is an important step towards achieving global as well as national sustainability aspirations," SN Goel, Chairman and Managing Director, IEX said.

This initiative is an effort by IEX to harness technology and innovation to facilitate the country's energy transition towards carbon neutrality.

Earlier this month, IEX became India’s first carbon-neutral Power Exchange, using market based tradable instruments to offset its carbon emissions.

Shares of IEX ended 1.5 percent higher at Rs 138.70.