Hong Kong Stock Exchange Launches International Carbon Market

Hong Kong Exchanges and Clearing Limited (HKEX) has announced the launch of ‘Core Climate’, a new international carbon marketplace that seeks to connect capital with climate-related products and opportunities in Hong Kong, Mainland China, Asia and beyond.

The HKEX said the new carbon marketplace reflects the exchanges’ commitment to building an integrated ecosystem and international carbon market in Hong Kong, one that provides a one-stop solution for trading, custody and settlement

Core Climate will facilitate effective and transparent trading of carbon credits and instruments to support the global transition to Net Zero. Core Climate participants will be able to source, hold, trade, settle and retire voluntary carbon credits through the Core Climate platform.

Carbon credits on the platform will come from internationally-certified carbon projects from around the world, including carbon avoidance, reduction and removal projects. All projects listed on Core Climate are verified against international standards, such as the Verified Carbon Standard by Verra.

Over time HKEX said it is committed to building Core Climate into an integrated carbon marketplace that addresses the needs of participants and project owners across the climate value chain.

“The role of capital markets is instrumental in finding the solutions to this, the most pressing issue of our generation. As a global East/West superconnector, HKEX is strongly positioned to build a vibrant and sustainable voluntary carbon market that brings together climate action ideas, capital and dialogue,” said HKEX Chief Executive Officer Nicolas Aguzin.

Expansion of Asian Carbon Exchanges

The HKEX move follows the establishment earlier this year in Singapore, Hong Kong’s rival Asian financial hub, of the carbon credit exchange Climate Impact X (CIX).

Singapore-based CIX was jointly established by DBS Bank, Singapore Exchange (SGX), Standard Chartered and Temasek, and is a global marketplace and exchange for quality carbon credits.

Last month the Stock Exchange of Thailand (SET) also launched its first carbon credit exchange,

Called FTIX the platform is operated by the Federation of Thai Industries and allows firms and government agencies to buy and sell carbon credits and track their emissions.

Other exchanges in the region are thought to be planning their own carbon trading platforms with Bursa Malaysia (BM), the Malaysian stock exchange, aiming to open a voluntary carbon market (VCM) exchange before the end of 2022.

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