Korean first-tier brokerage taps into voluntary carbon markets
South Korea’s Hana Securities announced on Dec. 12 that it had signed a memorandum of understanding with Singapore’s Climate Impact X (CIX) for carbon finance.
Under the agreement, the two outfits will cooperate to promote the voluntary carbon market, which has emerged of late as compared to the mandatory carbon market.
The latter involves specific industry sectors, which are required to adopt the emission limits set by the United Nations Convention on Climate Change.
On the other hand, the voluntary carbon market operates outside the compliance markets _ carbon emitters in other sectors try to offset their unavoidable emissions by purchasing carbon credits.
Hana Securities, South Korea’s top-tier brokerage house, is set to tap into the emerging market by joining hands with the CIX, a global exchange for voluntary carbon credits.
“As such issues as the ESG management and the initiatives to tackle climate change gain significance, we will preemptively attempt to create the voluntary carbon market,” Hana Securities CEO Lee Eun-hyung said.
“We will put forth efforts to come up with the virtuous cycle for carbon finance.”
Carbon finance has emerged over the past few years to cover financial tools, including carbon emission trading to reduce the impact of greenhouse gases.
Brief for Environmental, Social, and corporate Governance, ESG has been recognized as three central factors in improving the sustainability of a company or business.
Over the past few years, ESG programs have become a hot-button topic for businesspeople, bureaucrats, and scholars both at home and abroad.