Hong Kong’s stock exchange started its first voluntary carbon credit trading platform in a bid to bolster climate-related products on the back of growing demand.
Carbon credits on the Core Climate platform will come from internationally certified projects, including carbon avoidance, reduction and removal projects, HKEX said Friday. All projects listed will be verified against international standards, such as the Verified Carbon Standard by Verra.
Hong Kong’s new carbon market comes a step behind rival financial hub Singapore, which has three fledging bourses already planned or underway. While the latter is betting on speed and proximity to Southeast Asia’s tropical forests for its supply of credits, Hong Kong will leverage its China connection.
HKEX Co-Head of Markets Glenda So declined to disclose opening day trading volumes, and said the exchange will review the result and feedback about transparency in about a month.
HKEX was still on-boarding clients, including traders from China and around the world, So said. The platform currently offers a fee holiday for participants to encourage business.
