Korean brokerages enhancing emissions trade ahead of futures addition in carbon trade

South Korean securities firms are eagerly enhancing carbon emissions trade on expectations for rapid expansion under carbon neutrality goal.

According to industry sources on Monday, NH Investment & Securities formed a taskforce team for entry into the emissions trading market early this month with focus on the voluntary carbon market.

By using its group-wide agricultural cooperative network, the brokerage is planning to offer various carbon financing services such as purchases of carbon credits, related consulting and consignment services as an integrated solution provider.

Korea Investment & Securities and Hana Financial Investment, which have acted as liquidity providers, filed application for a direct hand in voluntary carbon market.

Foreign investment banking names like Goldman Sachs have already been engaged in carbon credit brokerage services between energy and raw materials companies at home and abroad.

IBK Securities late last year set up a carbon finance division for emissions trading service and related business.

Global voluntary carbon market is estimated to grow to $50 billion by 2030 from $360 million as of 2020, or a mere 1 percent of the total emissions trading market.

As the government and the Korea Exchange have been preparing to open a carbon trading futures market, the country¡¯s voluntary carbon market is forecast to grow rapidly.

¡°If the carbon credit futures market is opened, the price volatility will be stabilized and the market participants will be able to enjoy reduced risks,¡± said Park Gun-hoo, head of carbon finance taskforce team at NH Investment & Securities.

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