Singapore Carbon Exchange Plans Futures Trading for Offsets
- AirCarbon to work with German bourse on futures contracts
- Offsets exchange expects trading volume to triple this year
The skyline of Singapore.
Photographer: Roslan Rahman/AFP/Getty Images
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A Singapore carbon exchange is teaming up with Germany’s main bourse to launch futures trading for carbon offsets as early as this year to meet the growing demand from companies to hedge their risks from greenhouse gas emissions.
The futures contracts would be created by Deutsche Boerse AG using carbon credits sourced by Singapore-based AirCarbon Pte. The plan would be to trade the contracts on the European Energy Exchange, according to AirCarbon co-founder and chief executive officer Thomas McMahon. The German exchange didn’t immediately respond to a request for comment.