Crypto carbon credits8/13/2023 ![]() ![]() It is Singapore saying . . . we will be your outlet, we will be your go-to financial centre for trading these These are mechanisms where carbon emitters buy or sell credits based on whether they exceed or undershoot emissions limits set by the government.Īsia is one of the biggest growth areas for compliance markets: both South Korea and, more recently, China have established emissions trading schemes, and Indonesia and India will soon follow. The country also has its sights set on compliance markets, which are established by governments as a means of cutting national emissions through mandatory cap and trade schemes. Voluntary markets are only part of Singapore’s strategy, however. While relatively low now, at S$5 per tonne, the tax will rise to S$25 per tonne in 2024, and S$45 from 2026. The city-state will allow companies to use high-quality international carbon credits to offset up to 5 per cent of their taxable greenhouse gas emissions from 2024. Giving added heft to Singapore’s push is some good old-fashioned incentivising. “But the commodity traders are all here and so, naturally, you are seeing growth in carbon trading, too.” “Singapore’s emissions are large for a country of its size and it has no real means of getting to net zero,” says Vidur Nayar, head of Asia-Pacific environmental trading at Hartree Partners, a global energy and commodities trading group. ![]() Eligible projects include rainforests and biodiversity reserves in Asia, Africa and South America. The credits covered by the contract are generated through schemes that protect forests that would otherwise be destroyed or degraded, it says. Jointly established by DBS Bank, Singapore Exchange, Standard Chartered and state investor Temasek, CIX launched its first nature-based standardised contract this month. “It has the basic infrastructure and experience with creating new markets.” “We know this market is missing trust . . . Singapore has the right pedigree,” says Mikkel Larsen, chief executive of Climate Impact X, a global exchange and marketplace for carbon credits based in Singapore. ![]()
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