Singapore Carbon Credit Services

Singapore is rapidly emerging as a significant hub for carbon credit services in Southeast Asia, with a strong focus on developing a high-integrity and transparent carbon market. This ambition is supported by various government initiatives and the presence of numerous local and international players offering a wide range of services.

Here's a breakdown of the key areas in Singapore's carbon credit services landscape:

1. Carbon Credit Trading Platforms and Exchanges:

• AirCarbon Exchange (ACX): A global carbon exchange established in Singapore, recognized for its efficient and transparent trading platform with low transaction fees. It facilitates the trading of various environmental products, including carbon credits, with a global reach.

  
  

• Climate Impact X (CIX): A joint venture by Singapore Exchange (SGX), Temasek, DBS, and Standard Chartered. CIX aims to be a world-class carbon exchange and global marketplace, offering:

  
  

  • Carbon Exchange: For large-scale trading of high-quality carbon credits through standardized contracts.

  • Project Marketplace: For custom purchases of high-quality carbon credits directly from specific projects, catering to SMEs. CIX emphasizes using satellite monitoring, machine learning, and blockchain technology to enhance transparency and integrity.

    
    

• Other Exchanges: Enterprise Singapore mentions other active carbon exchanges like EEX and ICE also operating in Singapore.

2. Carbon Services and Solutions Providers:

Singapore hosts over 120 carbon services and trading firms, making it the highest concentration in Southeast Asia. These firms offer diverse services to help organizations manage their carbon emissions and engage with carbon markets:

• Climate Advisory: Companies like South Pole and Paia Consulting provide expertise in climate strategy, carbon footprint assessment (Scopes 1, 2, and 3), emissions reduction strategies, and disclosures (e.g., in line with TCFD and SBTi).

  
  

• Carbon Project Development: Firms assist in developing projects that reduce, remove, or avoid greenhouse gas emissions to generate carbon credits.

  
  

• Carbon Market Access and Procurement: Helping businesses understand and navigate carbon markets, source high-integrity carbon credits, and design procurement strategies. Abatable is an example of a firm expanding into Singapore to support APAC companies in this area.

  
  

• Decarbonization Solutions: Companies like Sembcorp (GoNetZero™) offer comprehensive end-to-end decarbonization solutions, including digital platforms for measuring, managing, and retiring environmental attributes like carbon credits.

  
  

• SaaS Platforms: Terrascope is a Singapore-founded SaaS platform that uses AI-assisted carbon measurement and management to help enterprises decarbonize their operations and supply chains.

3. Carbon Credit Verification and Accreditation Services:

Ensuring the integrity and quality of carbon credits is crucial. Several entities provide validation and verification services in Singapore:

• SGS Singapore: As a leading inspection organization, SGS provides certification and verification services to help organizations meet environmental compliance and carbon emissions reporting obligations.

  
  

• TEMBUSU Asia Consulting (TAC): Accredited by the Asia Carbon Institute (ACI) as the first Singapore Validation and Verification Body (VVB) to verify carbon credits, with a focus on engineered projects. TAC is also accredited by the Singapore Accreditation Council (SAC) for greenhouse gas verification.

  
  

• International Standards: Singapore's International Carbon Credit (ICC) Framework takes reference from internationally recognized carbon crediting programs and methodologies like Gold Standard for the Global Goals (GS4GG), Verified Carbon Standard (VCS), American Carbon Registry (ACR), and Global Carbon Council (GCC) to ensure high environmental integrity.

4. Government Initiatives and Support:

Singapore's government is actively fostering the growth of its carbon market ecosystem:

• Enterprise Singapore: Supports the development of carbon services and trading firms, and promotes various programs like the Carbon Market Academy of Singapore (CMAS) for talent development.

  
  

• Singapore Carbon Markets Alliance (SCMA): A platform launched by the Singapore Economic Development Board (SEDB) to connect international carbon credit providers with Singaporean buyers, aiming to be compliant with Article 6 of the Paris Agreement.

  
  

• The Coalition to Grow Carbon Markets: A government-led initiative by Kenya, Singapore, and the United Kingdom to strengthen voluntary demand for high-integrity carbon credits and unlock climate finance.

  
  

• International Carbon Credit (ICC) Framework: Singapore allows companies to use international carbon credits to offset taxable carbon emissions under this framework, which includes an "Overall Eligibility List" of approved carbon crediting programs and methodologies.

In summary, Singapore is positioning itself as a leading carbon services and trading hub, driven by robust infrastructure (exchanges), a growing ecosystem of service providers, and strong government support for high-integrity carbon markets.

How Professional can Help

Engaging with professionals in the carbon credit sector in Singapore can significantly benefit businesses looking to manage their environmental impact, achieve sustainability goals, and navigate the complexities of carbon markets. Here's how professionals can help:

1. Carbon Footprint Measurement and Reporting:

• Accurate Quantification: Professionals can help organizations accurately measure their carbon footprint across all scopes (Scope 1: direct emissions, Scope 2: indirect emissions from purchased energy, Scope 3: other indirect emissions from the value chain). They use internationally recognized standards like the Greenhouse Gas Protocol or ISO 14064.

• Compliance and Disclosure: They assist with reporting in line with various frameworks, including the Task Force on Climate-Related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB), Global Reporting Initiative (GRI), and CDP. This is becoming increasingly crucial as governments (including Singapore's) and clients demand more transparent climate-related disclosures.

• Identification of Emission Hotspots: By meticulously analyzing emissions data, professionals can identify the biggest sources of emissions within an organization's operations and supply chain, allowing for targeted reduction efforts.

  
  

2. Decarbonization Strategy and Implementation:

• Developing Roadmaps: Professionals help businesses strategize effective and efficient ways to reduce emissions, creating detailed decarbonization roadmaps. This might include identifying opportunities for energy efficiency, transitioning to renewable energy sources, and optimizing logistics.

• Science-Based Target Setting (SBTi): For companies committed to ambitious climate action, professionals can guide them through the process of setting Science-Based Targets (SBTs) and achieving validation from the Science Based Target initiative (SBTi).

• Feasibility Studies and Cost-Benefit Analysis: They conduct studies to assess the viability and financial benefits of various carbon reduction initiatives, helping businesses make informed investment decisions.

3. Carbon Credit Procurement and Management:

• Sourcing High-Quality Credits: With a proliferation of carbon projects, it can be challenging to identify high-integrity, credible carbon credits. Professionals have the expertise to source the right credits aligned with an organization's values and commitments, ensuring they genuinely represent real, permanent, measurable, and additional emission reductions.

• Market Navigation: The carbon market is dynamic and complex, with different exchanges (like ACX and CIX in Singapore), regulations, and pricing mechanisms. Professionals can guide businesses through this landscape, helping them understand market dynamics, participate in auctions, or engage in direct project marketplaces.

  
  

• Risk Mitigation: They help assess and mitigate risks associated with carbon credit purchases, such as concerns about additionality, permanence, or potential double counting.

• Retirement of Credits: Professionals assist in the proper retirement of carbon credits, ensuring that they are officially removed from the market and cannot be used again, thus preventing double-counting.

• Compliance with Carbon Tax (Singapore): In Singapore, companies subject to carbon tax can use eligible international carbon credits to offset a portion of their taxable emissions. Professionals can help businesses understand the International Carbon Credit (ICC) Framework and navigate the requirements for using these credits for compliance.

4. Carbon Project Development:

• Feasibility and Design: For organizations looking to generate their own carbon credits, professionals can assist in the entire project lifecycle, from initial feasibility studies and project design to securing necessary approvals and certifications.

  
  

• Verification and Validation: They help ensure that carbon projects meet the stringent requirements of recognized carbon standards (e.g., Gold Standard, Verra), facilitating the validation and verification processes necessary for credit issuance.

  
  

• Financing and Investment: Professionals can also advise on accessing funding and attracting investment for carbon projects.

5. Advisory on Policy and Regulatory Landscape:

• Staying Current: The carbon market and climate policy landscape are constantly evolving. Professionals stay abreast of the latest regulatory changes, domestic and international agreements (like Article 6 of the Paris Agreement), and reporting requirements, ensuring businesses remain compliant.

• Strategic Planning: They can help businesses integrate climate policies and carbon market considerations into their overall business strategy, turning potential risks into opportunities.

6. Enhanced Corporate Image and ESG Ratings:

• Credibility and Transparency: By engaging with professionals, businesses can demonstrate a more robust and credible approach to sustainability, which can enhance their corporate image, attract environmentally conscious partners and consumers, and improve their ESG (Environmental, Social, and Governance) ratings.

• Stakeholder Engagement: Professionals can help communicate sustainability efforts effectively to stakeholders, including investors, customers, and employees.

In essence, carbon credit professionals act as expert guides, helping businesses in Singapore (and beyond) to not only meet their decarbonization goals but also to unlock the strategic and financial benefits of participating in the growing global carbon economy. Given Singapore's ambition to be a leading carbon services hub, there's a strong ecosystem of experienced professionals available to assist.