ICX formed to explore business opportunities in carbon market

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

ICX will enable participants to buy and sell voluntary carbon credits at competitive prices through its transparent and reliable platform and facilitate reduction of global GHG emission by 45% by 2030 to get on track to limit global warming to 1.5 degrees, IEX said in a statement.

Additionally, ICX 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.

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 tonne by 2030.

This initiative is yet another effort by IEX to harness technology and innovation to facilitate the nation’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.