Singapore launches market alliance to facilitate carbon credit trading

Singapore launches market alliance to facilitate carbon credit trading, illustrative image (photo: VNA)

Singapore – The Singapore Carbon Market Alliance (SCMA) was recently launched to serve as a national platform to help connect carbon credit project developers with potential buyers.

The launch of SCMA was announced by Senior Minister of State for Trade and Industry Low Yen Ling at the Bloomberg Sustainable Business Summit on July 31.

The alliance will help buyers interested in acquiring high-quality credits identify reliable projects because it will target projects that provide credits that are aligned with the Paris Agreement on climate change. Singapore-based corporations could buy these credits to meet their climate goals and offset part of their carbon tax.

One carbon credit is equivalent to one tonne of carbon dioxide (CO2) prevented or removed from the atmosphere. These credits are created through renewable energy projects and other initiatives such as forest conservation, mangrove restoration and replacing wood stoves.

SCMA is a collaboration between the Singapore Economic Development Board (EDB) and IETA, a non-profit organisation representing companies engaged in smart, well-designed and efficient carbon markets worldwide.

Low Yen Ling said Singapore was pursuing bilateral carbon trading with more than 20 countries, two of which – Papua New Guinea and Ghana – had signed bilateral agreements with the city-state.

However, so far there are no loans for sale from countries that meet the criteria set by the Singapore government.

EDB Managing Director Jacqueline Poh said they have signed these agreements but do not have any loans yet, so they need to work on it together.

The Alliance is an invitation-only platform and currently has over 50 members from sectors including energy, healthcare, semiconductors, logistics and carbon services.

Any organisation interested in joining can write to EDB and IETA. They must meet the criteria of being leading international developers and suppliers of carbon credits, and the companies must have a strong climate commitment and be interested in buying credits.

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