Voluntary carbon credit derivatives are emerging as potent climate change combatants. The future demand for voluntary carbon credits hinges on government, corporate, and consumer climate efforts, adding uncertainty. Voluntary carbon credit derivatives step in to mitigate these challenges. Additionally, in November 2020, AirCarbon Exchange (ACX), a Singapore-based platform specialising in trading tokenized carbon credits, introduced the first exchange-traded options contract for voluntary carbon credits, effectively anchored within the VCS framework [3].Recognising the pivotal role of voluntary carbon credit derivatives in propelling sustainable finance, the National Stock Exchange (NSE) of India, is actively exploring new avenues for venturing into carbon credit derivatives. India, being a major player in the global voluntary carbon credit market, possesses an estimated 26 million credits [5] to its name.

Source: Economic Times October 12, 2023 11:42 UTC