London Stock Exchange sets listing rules for carbon cutters

LONDON (Reuters) – The London Stock Exchange has become the first to fund carbon reduction projects, the chief executive of the London Stock Exchange told Reuters. The main exchange where companies set listing rules as part of an effort to develop the market and make it more transparent. Demand for carbon offsets through projects such as tree planting is expected to soar in ng or renewable energy as companies seek to meet net-zero emissions targets.

as the focus of policy makers will likely be the climate talks in Egypt in November, however, with companies and Contrary to binding national commitments to reduce emissions, the global market for voluntary carbon credits remains largely unregulated.

while rival exchanges such as Deutsche Börse (ETR: 2030DB1Gn)’s EEX Financial products such as futures contracts based on carbon credits have been introduced, and the LSE’s rules are designed to encourage investment funds and operating companies to raise billions of pounds to finance climate-friendly projects through a London Stock Exchange listing. The London Stock Exchange’s final access and disclosure rules for voluntary carbon offsets, published on Monday following a public consultation, are in line with the UK Efforts to promote London as a green finance hub dovetail. Competition from elsewhere. Under the new rules, a fund or company must publish a prospectus vetted by the Financial Conduct Authority that provides details on carbon emissions-cutting projects it wants to finance. LSE said this would ensure that standards such as climate-related disclosure and market abuse rules must be adhered to. “What this brings is proper transparency, proper due diligence and proper disclosure, allowing businesses and other investments People really know what they are buying. This is something that a voluntary carbon market has not had before,” LSE chief executive Julia Hoggett said. An investment fund supporting voluntary carbon markets is expected to go public this year, followed by others in 50, Hoggart said. Companies operating carbon reduction projects will be added in the future. worth about 20 One hundred million U.S. dollars42 , according to Ecosystem Markets, the annual global market for voluntary carbon credits could reach $ Billion 52 , McKinsey consultant estimates. Once the offset project generates carbon credits, equivalent to tons of carbon dioxide removed or removed from the atmosphere, shareholders can receive dividends in the form of carbon credits , or the fund could sell them and pay dividends in cash.