Friday, 16 August 2024.
After Malaysia, China, Indonesia and India, today the last post of this week, focusing on carbon markets in Asia.
Before going over Singapore, let’s not forget that less than a month ago we posted about Japan. More specifically, about a partnership with a company from United States on purpose of growing demand for carbon offsets in Japan.
Singapore is an island country and city-state in maritime Southeast Asia, where 5,6 million people live. Due to a favorable geography, it has the largest port in that region and one of the busiest in the World.
Last 31 July 31, 2024, the Singapore Economic Development Board (EDB) and IETA (formerly the International Emissions Trading Association) have launched the Singapore Carbon Market Alliance (SCMA), the first platform in Singapore aimed at helping companies obtain access to high-quality Article 6 carbon credits.
Singapore has been actively engaging likeminded countries on carbon credits collaboration aligned with Article 6 of the Paris Agreement. It has already signed Memorandum of Understanding (MoU) with over 15 countries in Latin America, Asia, Africa and Oceania. Click here to see which ones and know more about Singapore's Carbon Markets Cooperation.
The fact that the agreements are MoUs so far means that there are no credits for sale from those countries that meet the criteria set by the Singapore Government. This is joint work in progress.
As you know, Article 6 is still being discussed, towards seeking final consensus at COP.
According to the SCMA press release, these credits can help companies meet their corporate climate goals, contribute to global sustainability ambitions, and can be used towards Singapore’s Nationally Determined Contributions (NDCs).
Companies in Singapore, especially in hard-to-abate sectors, will be allowed to use international carbon credits to offset up to 5% of their taxable emissions.
In 2019, Singapore introduced a carbon tax for industrial facilities with direct emissions of at least 25 kilotonnes per annum to steer businesses towards greener practices.
Click at the image below for the press release from IETA.
As Singapore is diligently focusing on high-quality carbon credits, interested international developers and suppliers will be accepted by SCMA exclusively upon invitation. Click here for the website of SCMA, including the contact email to express interest in becoming a member.
“I would also like to highlight that the carbon market is an important mechanism for supporting voluntary climate goals. While regulatory requirements set a baseline, voluntary credits enable companies to go above and beyond compliance. When paired with a credible decarbonisation strategy, these voluntary carbon credits allow businesses to demonstrate leadership and commitment and drive sustainability both within and beyond their value chain.” said the Singapore Senior Minister of State for Trade and Industry in his speech at the Launch of SCMA.
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