10.28.2022

HKEX Launches International Carbon Marketplace

10.28.2022
HKEX Launches International Carbon Marketplace
  • Core Climate will provide effective and transparent trading of voluntary carbon credits and instruments, across Asia and beyond
  • New carbon marketplace reflects HKEX’s 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

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce 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.

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.

HKEX Chief Executive Officer Nicolas Aguzin said: “Addressing the climate crisis demands decisive action and focused, significant regional and global cooperation. 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. Core Climate is the latest in HKEX’s commitment to securing the future of our planet – playing an important role in supporting the global transition to a low-carbon economy, investing in our shared future, for today, and tomorrow.”

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 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.

HKEX Co-Head of Markets Glenda So said: “We see Core Climate developing to become essential infrastructure, part of our highly connected international ecosystem, matching investment capital with new climate projects, technologies and business models. This will accelerate the shared Net Zero transition and secure a sustainable future for coming generations. I would like to thank all the members of the Hong Kong International Carbon Market Council for their valuable insight, guidance and support as we bring Core Climate to life. We are excited to go on this journey with you.”

Core Climate is HKEX’s latest sustainability-focused initiative, part of its long-term commitment to achieving a low-carbon economy. HKEX has been a vocal advocate of sustainability for many years and was one of the first exchanges to mandate ESG disclosures and closely follows the development of the Task Force on Climate-Related Financial Disclosures framework.

In 2020, HKEX launched STAGE, an online portal providing information, access and transparency on a wide range of sustainable, green and social investment products. Through the ESG Academy, HKEX supports market education on ESG factors. In March this year, HKEX signed a Memorandum of Understanding with the China Emissions Exchange to explore cooperation in tackling climate change and promoting sustainability through carbon. In July, HKEX formed the Hong Kong International Carbon Market Council, which comprises leading corporates and financial institutions focused on supporting the development of an international carbon marketplace.

In collaboration with the Council and key stakeholders across the climate value chain, HKEX will continue to explore climate-related opportunities to enhance Core Climate over time.

Source: HKEX

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