Indian Energy Exchange (IEX) rose 1.24% to Rs 138.25 after the company announced that it has incorporated a wholly owned subsidiary, International Carbon Exchange (ICX) to explore business opportunities in the voluntary carbon market.
IEX formed a new subsidiary with an authorized share capital of Rs 10 crore and paid-up share capital of Rs 5 crore each.
International Carbon Exchange has been incorporated to establish and operate a platform for the trading of various types of green products including all other forms/types of carbon credits and certificates and various emission reduction products and other instruments and derivatives thereof, in ready, forward and futures markets in whole of India and outside India, IEX said in the press statement.
IEX shall subscribe to 100% paid-up share capital in cash. The company will subscribe to 50,00,000 equity shares of Rs 10 each aggregating to Rs 5 crore.
The power exchange said that ICX will enable participants to buy and sell voluntary carbon credits at competitive prices through its transparent & reliable platform and facilitate reduction of global greenhouse gas (GHG) emission by 45% by 2030 to get on track to limit global warming to 1.5 degrees. The recently concluded COP 27 reiterated the need to ramp-down GHG emissions. In the national context, India has set a target to Net Zero emissions by 2070, it added.
Additionally, ICX will facilitate corporates to meet their climate commitments goals. The exchange platform will provide a robust market signal for attracting further investments in the sustainable projects and help corporates to allocate capex towards energy transition in most optimum manner. As per industry estimates, the annual demand for voluntary carbon credit globally is expected to reach around 1.5 gigatons, with India contributing around 200 million tonnes by 2030, the company stated.
SN Goel, chairman & managing director, IEX said, This is aligned to our vision of architecting next-generation solutions for sustainable energy to ensure competitive, transparent and reliable access. With our earlier diversification initiative, Indian Gas Exchange, transforming the Gas market in the country, we continue to sustainably transition India's energy market through efficient and asset-light businesses. Establishing a transparent and reliable carbon trading platform is an important step towards achieving global as well as national sustainability aspirations.
IEX is India's premier energy exchange providing a nationwide, automated trading platform for physical delivery of electricity, renewable power, renewable energy certificates and energy saving certificates.
The company's consolidated net profit declined 8.4% to Rs 71.20 crore on 13.8% decrease in net sales to Rs 95.20 crore in Q2 FY23 over Q2 FY22.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
