The London Stock Exchange has become the first major bourse to set listing rules for companies that finance carbon reduction projects, as part of efforts to grow the market and make it more transparent. Demand for carbon offsets, generated through projects such as tree planting or renewable energy, is expected to soar as companies seek to meet net-zero emissions goals. As a focus for policymakers, it is likely to be debated at climate talks in Egypt in November, yet the global market for voluntary carbon credits, as opposed to binding commitments to cut emissions by companies and countries, remains largely unregulated. While rival exchanges such as Deutsche Boerse's (DB1Gn.DE) EEX have launched financial products such as futures contracts based on carbon credits, the LSE's rules aim to encourage investment funds and operating companies to raise billions of pounds through LSE listings to fund climate-friendly projects.

Source: Reuters