The Singapore Economic Development Board (EDB) and IETA (formerly the InternationalEmissions 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. These credits can help companies meet their corporateclimate goals, contribute to global sustainability ambitions, and can be used towardsSingapore’s Nationally Determined Contributions (NDCs). The initiative was launchedtoday by Senior Minister of State, Ministry of Trade and Industry, Ms Low Yen Ling, at theBloomberg Sustainable Business Summit.
The SCMA is a by-invitation-only alliance that will connect leading international developersand suppliers of carbon credits, with Singapore-based corporates with strong climatecommitment and interest in purchasing Article 6 carbon credits. Through workshops andnetworking sessions, the SCMA will build members’ knowledge on enabling and accessinghigh-quality credits. It will also facilitate exchanges between industry and the Governmenton Singapore’s requirements and initiatives in carbon credits.
The launch of the SMCA comes amidst growing demand for high-quality carbon credits asSingapore moves towards a low-carbon economy. Singapore has remained successful inattracting new regional headquarters and manufacturing plants from many multinationalcompanies. There is strong interest from these companies to purchase carbon credits tomeet their global sustainability goals. In addition, from 2024, companies in Singapore willbe allowed to use international carbon credits to offset up to 5% of their taxable emissions. Access to high-quality carbon credits will be especially important for companies in hardto-abate sectors, where low-carbon technologies will require more time to becomecommercially available.
“The Singapore Carbon Market Alliance (SCMA) will be a key platform for connection,knowledge-building and discussion around Article 6 credits. High quality carbon creditscan unlock climate financing and offer a complementary pathway for companies andcountries, including Singapore, to meet climate goals,” said Ms Jacqueline Poh, ManagingDirector, Singapore Economic Development Board. “We look forward to partnering withIETA to bring leading companies together to foster a vibrant and trusted carbon marketand strengthen Singapore’s leadership in carbon services and trading.”
“IETA fully supports Singapore’s efforts to develop a regional market for the trade in highquality carbon credits. Achieving the Paris Agreement goals requires internationalcollaboration and Singapore’s position as a major global hub makes it an excellent candidate to drive forward the development of a truly international carbon market,” saidDirk Forrister, IETA President and CEO.
The SCMA adds to Singapore’s efforts to develop itself into an attractive carbon servicesand trading centre in the heart of Asia. Home to more than 120 firms across the carbonmanagement value chain that support corporates and governments in Asia to transit to alow-carbon future, Singapore is also investing in research on nature-based solutions andshaping international carbon credit initiatives.
IETA’s role as a convenor for the international business sector in carbon markets willencourage positive and active participation from key carbon credit project developers andbuyers. Through its ICROA Accreditation Programme, IETA will also provide the SCMAwith best practice guidance for sellers and project developers to participate in the scheme.
