IEX Shares Rise 3% After CERC Announces Framework for Carbon Credit Certificate Trading
Stock Gains Following Regulatory Clarity on Carbon Credit Markets
Shares of Indian Energy Exchange Ltd. (IEX) rose about 3 percent on Wednesday, March 11, after the Central Electricity Regulatory Commission (CERC) announced a regulatory framework governing the purchase and sale of Carbon Credit Certificates (CCCs).Power exchanges will serve as the primary platforms for trading these carbon credits under the newly outlined structure. The framework creates two separate market segments: a compliance market for obligated entities and an offset market for non-obligated participants.
Key Institutions Assigned Roles in Carbon Credit Market
Under the framework, the Grid Controller of India has been designated as the registry responsible for maintaining records of carbon credit certificates.The Bureau of Energy Efficiency will function as the market administrator. Its responsibilities include setting procedures, managing registrations, monitoring market activities, and disseminating relevant market information.
The development is considered a long-term positive for IEX and other power exchanges as it expands the scope of exchange-based energy and environmental product trading.
Previous Legal Challenge on Market Coupling
About a month ago, the Appellate Tribunal for Electricity dismissed a plea filed by IEX against the CERC’s market coupling direction. The tribunal allowed the regulator to proceed with framing the relevant regulations.The tribunal also stated that IEX could file a fresh plea if it had new grievances related to the final regulations.
IEX Q3 Results Show Profit and Revenue Growth
In its third-quarter results, IEX reported a net profit of ₹119 crore, marking an increase of 11 percent compared to the previous year.Revenue for the quarter rose 10 percent to ₹146 crore from ₹132 crore a year earlier.
Earnings before interest, tax, depreciation and amortization (EBITDA) increased 8 percent to ₹122.3 crore from ₹113.4 crore in the corresponding quarter last year. EBITDA margins remained largely stable at 84 percent compared to 85.9 percent in the year-ago period.
IEX Share Price Update
As of around 9:30 am on Wednesday, shares of Indian Energy Exchange were trading 2.7 percent higher at ₹124.24 apiece.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
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