Hong Kong bourse operator HKEX launches voluntary carbon-trading platform to position city in climate-change fight

Core Climate, which launched on Friday, is an international marketplace for the trading of carbon credits to support the world’s net-zero transition, HKEX said

The platform allows participants to source, hold, trade, settle and retire credits sourced from certified carbon projects around the world

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In this November 28, 2019, photo, smoke and steam rise from a coal processing plant in Hejin in central China’s Shanxi Province. Photo: AP

Martin Choiin Hong KongandYujie Xuein Shenzhen

Published: 7:30pm, 28 Oct 2022

Bourse operator Hong Kong Exchanges and Clearing (HKEX) has launched a trading platform for voluntary carbon credits as the city aims to bolster its role as an international carbon market and tackle climate change.

The new platform, Core Climate, is an international carbon marketplace for the trading of carbon credits and other instruments to support the transition to net zero, according to a statement on Friday afternoon.

“As a super connector between China and the world, HKEX is committed to lead the development of an international carbon market in Hong Kong, the Greater Bay Area and beyond,” said Glenda So, HKEX’s co-head of markets, in a press conference on Friday. “In the carbon space, we aim to facilitate capital flow into the right projects and companies to achieve the net zero objectives.”

A carbon credit is a permit that allows the holder to emit a certain amount of carbon dioxide or other greenhouse gases over a period of time. One credit is typically equivalent to one tonne of carbon dioxide.

Exchange Square, home of bourse operator Hong Kong Exchanges and Clearing in Hong Kong’s Central district. Photo: SCMP / Yik Yeung-man

According to HKEX, participants on the Core Climate platform will be able to source, hold, trade, settle and retire voluntary carbon credits. Carbon credits will be sourced from internationally certified carbon projects around the world, including carbon avoidance, reduction and removal projects.