Korea Exchange said on the 17th that it signed a business agreement with the U.S. company Xpansiv. Xpansiv operates CBL, the world's largest carbon credit exchange.
Korea Exchange is reviewing the launch of the "KRX carbon credit market" following the greenhouse gas emissions allowance market to strengthen its carbon market business. A carbon credit refers to a performance of reducing carbon emissions. Its use is growing in connection with the Paris climate agreement, the emissions trading scheme, and the Carbon Offsetting and Reduction Scheme for International Aviation.
Based on this MOU, Korea Exchange plans to explore the potential for linkage with CBL and expand its network with overseas carbon markets. If the KRX carbon credit market opens, it also unveiled a blueprint to supply overseas institutions' liquidity to the domestic market to invigorate trading.
Korea Exchange also plans to prepare measures to build infrastructure that allows convenient trading of overseas carbon credits.
Jung Eun-bo, chair of Korea Exchange, said, "Korea Exchange aims to foster Asia's best carbon market, and in the process, we expect to have opportunities to collaborate with Xpansiv, which operates the global carbon credit market, in various ways."