The Australian Stock Exchange (ASX) has shared that it is exploring the development of Australia’s first carbon exchange.
According to the exchange, the plan is to design a trading venue that operates like a conventional securities exchange but deals exclusively with carbon credit units.
ASX is working with the Clean Energy Regulator on the project to start in early 2024.
The first stage will involve a consultation with market participants and a feasibility study.
“Demand for carbon credits continues to increase with government policy focused on emissions levels and corporates seeking to develop compliance measures and meet both regulated and voluntary emissions targets over the coming years,” said Helen Lofthouse, managing director and CEO, ASX.
ASX is not the only exchange currently experimenting with carbon credits. In November, Dubai piloted a carbon trading exchange, while Abu Dhabi launched what it claimed was the world’s first regulated carbon exchange in April 2022.
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