ASX to explore carbon exchange development
19 December 2023 Australia
Image: Timon/stock.adobe.com
ASX will explore the development of an Australian Carbon Exchange in 2024, in partnership with the Clean Energy Regulator (CER).
The exchange will operate similarly to a securities exchange, with Australian carbon credit units (AACUs) able to be traded, cleared and settled.
A feasibility study will be undertaken to assess whether the current regulatory framework for AACUs can support a new solution that meets the needs of the Australian market, or whether changes need to be made, ASX says.
Helen Lofthouse, ASX managing director and CEO, comments: “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.
“ASX is supportive of efforts to decarbonise the Australian economy and we are excited to be undertaking this work with the CER.”
The exchange will operate similarly to a securities exchange, with Australian carbon credit units (AACUs) able to be traded, cleared and settled.
A feasibility study will be undertaken to assess whether the current regulatory framework for AACUs can support a new solution that meets the needs of the Australian market, or whether changes need to be made, ASX says.
Helen Lofthouse, ASX managing director and CEO, comments: “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.
“ASX is supportive of efforts to decarbonise the Australian economy and we are excited to be undertaking this work with the CER.”
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