London Stock Exchange facilitates climate mitigation finance

Launches voluntary carbon market

The London Stock Exchange has launched a solution for public markets to be able to channel capital towards climate mitigation.

The intention to create a way to direct finance at scale into climate mitigation projects was announced at COP26 last year, and yesterday the London Stock Exchange published the final admission and disclosure standards, making this a reality.

It is open to closed-ended investment funds and operating companies admitted or seeking admission to trading on the London Stock Exchange’s markets. This allows a fund or an operating company to raise capital from investors through an IPO. The capital raised will be invested into climate mitigation projects, such as reforestation or carbon capture possibly alongside other climate-aligned assets.

The London Stock Exchange hopes the first issuer will be able to use it shortly.

“Our goal is to facilitate the financing of projects that are focused on climate change mitigation. Today’s publication of our admission and disclosure standards marks the launch of the first public markets solution to help raise capital for the voluntary carbon market,” said London Stock Exchange CEO Julia Hoggett.

“It paves the way for capital at scale to be channelled into a range of climate change mitigation projects, while providing corporates and other investors with net-zero commitments with the ability to access a diverse supply of high-quality carbon credits.”