MCX awaits FMC approval to initiate carbon trading
Multi-Commodity Exchange of India Ltd (MCX), which had earlier entered into a strategic alliance with the Chicago Climate Exchange (CCX), is all set to launch trading in carbon credits shortly.
By PTI |
MUMBAI: Multi-Commodity Exchange of India Ltd (MCX), which had earlier entered into a strategic alliance with the Chicago Climate Exchange (CCX), is all set to launch trading in carbon credits shortly.
"The Exchange has already filed the contract with the commodity market regulator Forward Markets Commission (FMC) for approval. The same will be launched as soon as it is approved," MCX, Joseph Massey said.
Commenting on the carbon credit trading mechanism, Massey said, "On the MCX platform contracts with underlying CERs would be bought and sold by the market participants pouring in information about various factors that affect the supply and demand for CERs in markets where they are deliverable."
Since this is done on an electronic platform, the prices are viable across the entire ecosystem empowering the generators besides providing them a platform to pre-sell their Carbon Credits or CERs (Carbon Emission Reductions) and help them lock in their returns besides hedging their risks, Massey added.
"The Exchange has already filed the contract with the commodity market regulator Forward Markets Commission (FMC) for approval. The same will be launched as soon as it is approved," MCX, Joseph Massey said.
Commenting on the carbon credit trading mechanism, Massey said, "On the MCX platform contracts with underlying CERs would be bought and sold by the market participants pouring in information about various factors that affect the supply and demand for CERs in markets where they are deliverable."
Since this is done on an electronic platform, the prices are viable across the entire ecosystem empowering the generators besides providing them a platform to pre-sell their Carbon Credits or CERs (Carbon Emission Reductions) and help them lock in their returns besides hedging their risks, Massey added.
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