“Singapore-based carbon exchange Climate Impact X (CIX) on Thursday (June 8) formally launched its global spot trading platform, CIX Exchange, which aims to boost the liquidity of carbon offset trading and set a benchmark price for nature-based carbon credits.”
“Seven transactions totalling 12,000 carbon credits were traded and cleared involving CIX’s first standardised contract called CIX Nature X, or CNX.”
“Each carbon credit represents a tonne of carbon dioxide (CO2), the main greenhouse gas, reduced or avoided from projects that meet international standards and are verified by third-party auditors.”
“Companies buy these offsets to reduce their own carbon footprint, especially in areas where it is hard to cut emissions to reach net-zero.”
Source: The Strait Times
Is making carbon offsets a more liquid asset a good idea? We’ve seen the effects of gamified financial instruments in unregulated markets…