(25 May 2021 – Singapore) A new global exchange and marketplace for high-quality carbon credits is set to launch in Singapore by year-end, backed by DBS, Standard Chartered, Singapore Exchange (SGX) and Temasek Holdings.
Climate Impact X (CIX) will provide better price transparency and verification of the quality of carbon credits – two current challenges in the global voluntary carbon market. The marketplace's initial focus will be to catalyse the market for natural climate solutions (NCS), which involve protection and restoration of natural ecosystems such as forests, wetlands and mangroves.
CIX will use satellite monitoring, machine learning and blockchain technology to enhance transparency, integrity and quality of carbon credits. It is also in talks with global rating agencies to provide independent ratings to the projects.
CIX noted the growing global demand for high-quality carbon credits in the voluntary carbon market, which is estimated to increase at least fifteenfold by 2030, up to 1.5 to 2 gigatons of carbon dioxide annually.
“A meaningful price on carbon is critical to create the right incentives to reduce emissions. The challenge is to arrive at the right price, one that does not unduly impede economic development and yet is sufficient to drive decarbonisation efforts that will enable the world to meet its climate targets,” said Monetary Authority of Singapore managing director Ravi Menon.
“By facilitating a well-functioning marketplace with strong impact and risk data, CIX will enable efficient price discovery and catalyse the development of new projects,” said DBS chief sustainability officer Mikkel Larsen, who is also the interim CEO of CIX.