Indian Energy Exchange forms subsidiary in carbon market

Indian Energy Exchange, a platform for trading energy, announced on Tuesday that a company had been established to look into commercial potential in the voluntary carbon market. International Carbon Exchange Private Limited is the name of the wholly-owned subsidiary corporation (ICX). In a statement, IEX said that the new organisation would make it possible for users to buy and sell voluntary carbon credits on its platform at competitive prices, as well as make it possible to cut global greenhouse gas emissions by 45% by 2030 in order to stay on track to keep global warming to 1.5 degrees. The necessity of reducing GHG emissions was reaffirmed at the just finished COP27. By 2070, India had set a goal of having Net Zero emissions. We continue to sustainably transition India's energy market through effective and asset-light enterprises, building on the success of our prior diversification effort, Indian Gas Exchange, which transformed the country's gas market. To fulfil national and international sustainability goals, creating a trustworthy and transparent carbon trading mechanism is crucial,”said SN Goel, the IEX's chairman and managing director. Additionally, by offering a strong market signal to attract additional investments in sustainable projects and aiding corporations in allocating cape (capital expenditure) towards energy transformation in the best possible way, ICX will assist corporations reach their climate commitments goals. According to industry predictions, the yearly demand for voluntary carbon credits is anticipated to reach 1.5 gigatons globally by 2030, with India accounting for about 200 million tonnes of that total. Voluntary carbon markets are those where carbon credits are bought, typically by organisations, for their own personal use as opposed to to meet legally obligated responsibilities to reduce emissions. Markets for voluntary carbon are expanding, in part due to demand from companies wishing to offset their emissions.