Monday 17 October 2022

London Stock Exchange launches voluntary carbon market

The London Stock Exchange has revealed it is launching a voluntary carbon market.

This market will look to propagate climate mitigation through the use of carbon credits, purchased by investors and corporate businesses from initiatives that benefit the planet.

Public market regulations and disclosure obligations will be a key part of the market, the London Stock Exchange has stressed.

Carbon offsetting has become of key interest to many companies to balance the carbon emissions they release from their operations through actions such as planting trees or carbon capture.

This voluntary market was initially suggested by the London Stock Exchange in November of last year – but has now received its final admission and disclosure standards to give it the green light.

Through its launch, firms will be able to raise capital from investors using an IPO – that will then be transitioned into climate protective projects.

CEO of the London Stock Exchange, Julia Hoggett, said: “Our goal is to facilitate the financing of projects that are focused on climate change mitigation. Today’s publication of our admission and disclosure standards marks the launch of the first public markets solution to help raise capital for the voluntary carbon market.

“It paves the way for capital at scale to be channelled into a range of climate change mitigation projects, while providing corporates and other investors with net zero commitments with the ability to access a diverse supply of high-quality carbon credits.”