Indian Energy Exchange (IEX), India’s leading and premier energy market platform, incorporated a wholly owned subsidiary company “International Carbon Exchange Private Limited” (“ICX”) today 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 & 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. The recently concluded COP 27 reiterated the need to ramp-down GHG emissions. In the national context, India has set a target to Net Zero emissions by 2070.
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 tonnes by 2030.
Shri. SN Goel, Chairman & Managing Director, IEX said, “It gives me immense pleasure to announce the incorporation of our wholly-owned subsidiary, International Carbon Exchange, which will be India’s first voluntary Carbon Exchange platform. This is aligned to our vision of architecting next-generation solutions for sustainable energy to ensure competitive, transparent and reliable access. With our earlier diversification initiative, Indian Gas Exchange, transforming the Gas market in the country, we continue to sustainably transition India’s energy market through efficient and asset-light businesses. Establishing a transparent and reliable carbon trading platform is an important step towards achieving global as well as national sustainability aspirations.”
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.
