Carbon Markets Crucial to Net Zero Goals – HKEX Chair

Carbon credits can play a key role in the decarbonisation of companies, but obstacles must be overcome rapidly, said Laura Cha, Chair of the Hong Kong Exchanges and Clearing (HKEX). She noted widespread adoption, particularly in Asia, has especially been hindered by inconsistencies in the governance, quality and methodologies of credits traded in voluntary carbon markets (VCMs). “This means buyers often have difficulty navigating different standards, finding price transparency or defining high-quality carbon credits,” she wrote. “For sellers, this limits access to finance and raises the cost of verification for small project developers.” The lack of trusted marketplaces also may impede the flow of capital between firms looking to fulfil their net zero commitments and those who are credibly generating and selling carbon credits. In October, HKEX launched Core Climate, which aims to serve as a voluntary international carbon marketplace that will facilitate the trading of carbon credits from projects verified against international standards, such as Verra. She said: “With our latest carbon initiative, we are confident that we are creating the channels needed to scale-up the solutions we all need to accelerate the net zero transition. Please join us as we strive to create a prosperous future for all.” 

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