- 28 Nov 2022
- ICICIdirect Research
IEX to seek opportunities in Carbon marketIEX - 154 Change: 1.00 (0.65 %)
IEX has informed that the Board of Directors in their meeting held on November 25, 2022, has accorded its in-principle approval for the formation of a wholly-owned subsidiary company in India to explore the business opportunities in Carbon Market.
Carbon markets are trading systems in which carbon credits are sold and bought. Carbon was recognised as a tradable good when the Kyoto Protocol was signed in 1997. Nowadays, carbon is traded internationally in exchange for carbon credits. In the past, India has made investments in producing carbon credits and exporting them to international enterprises. Between 2010 and June 2022, India issued 35.94 million carbon credits or nearly 17% of all voluntary carbon market credits issued globally. The market for carbon credits increased by 164% globally in 2021. It is anticipated to reach $100 billion by 2030. The government now intends to forbid its exports, guarantee the expansion of a local domestic market for carbon credits, and increase its internal trade. With setting in Carbon market IEX will get early movers advantage and may garner volumes.