ESG Post

Climate Change

HKEX adds gold standard carbon credits to its core climate platform

Hong Kong Exchanges and Clearing Limited (HKEX) announced the inclusion of Gold Standard’s Verified Emission Reductions (GS-VERs) on the Core Climate platform, HKEX’s carbon marketplace, with effect on 1 August 2024.

HKEX Co-Head of Markets Glenda So said, “We are delighted to add Gold Standard’s Verified Emission Reductions to our carbon market ecosystem. The addition will allow a more diverse range of internationally certified climate projects to be available on the Core Climate platform and reflects our commitment to providing investors and corporates with more options to support climate projects as they progress in their net zero transition journeys.”

Gold Standard is one of the leading carbon credit certification programmes globally, dedicated to advancing progress in climate change mitigation and sustainable development. Each Gold Standard issued Verified Emission Reductions (GS-VERs), representing one tonne of CO2 emissions, is a carbon offset that can be traded on the voluntary carbon market.

Core Climate will facilitate the trading, settlement, custody, and retirement of GS-VERs, ensuring a seamless and integrated experience for its users.

All entities onboarded to the Platform by Core Climate will be eligible to access the product through the Core Climate platform. The platform will automatically synchronize with the existing setting, ensuring a smooth transaction and uninterrupted service. The GS-VERs will be directly accessible by the users through the platform without additional technical setup.

In its circular, HKEX noted, “Existing arrangements, including operational flow, remain unchanged for the Users to trade, settle, custody and retire GS-VERs through the Platform. However, users are advised to refer to the Rules of the Platform for the latest update due to the inclusion of this product. Trading Fee of the Product will be waived for all the Users until further notice.”

Since its launch in October 2022, HKEX’s Core Climate has been the only carbon marketplace offering Hong Kong Dollar and Renminbi settlements for international voluntary carbon credits. The platform has over 80 participants and provides high-quality carbon credits from more than 50 internationally certified projects across Asia, South America, and West Africa, encompassing forestry, solar, wind, and biomass initiatives. All projects on Core Climate are verified against international standards, including the Verified Carbon Standard by Verra.