The Korea Exchange (KRX) is joining efforts to establish a Korean voluntary carbon market. The bourse plans to create a listing review framework for carbon credits and pursue linkages with overseas exchanges to build an institutional foundation for the voluntary carbon market.
The Korea Exchange said Thursday that it had participated in the launch ceremony of the Korean Voluntary Carbon Market Alliance, hosted by the Ministry of Planning and Budget. The ceremony brought together the ministry, the Korea Exchange, the Korea Chamber of Commerce and Industry, along with large corporations, mid-sized firms, startups and financial institutions to discuss directions for developing the voluntary carbon market.
At the event, the exchange unveiled plans to establish the "KRX Carbon Credit Market." The bourse said it would create a listing review system to prevent greenwashing concerns stemming from the circulation of low-quality carbon credits, and cooperate with the government and domestic carbon credit registries to build a stable and efficient trading platform.
The exchange is also pursuing connections with overseas markets. The KRX said it plans to work with global carbon credit exchanges, registries and investors to facilitate cross-border trading and attract overseas liquidity to the KRX Carbon Credit Market. In September last year, the exchange signed a memorandum of understanding (MOU) with Xpansiv, the operator of the world's largest carbon credit trading platform.
"The voluntary carbon market is becoming a necessity rather than an option in terms of corporate social responsibility," Korea Exchange Chairman Jeong Eun-bo said in his congratulatory remarks. "Based on our 11 years of experience operating the emissions trading market, we will develop the KRX Carbon Credit Market into a global hub."
