The Singapore Economic Development Board (EDB) and the International Emissions Trading Association (IETA) have launched the Singapore Carbon Market Alliance (SCMA), a pioneering platform aimed at facilitating access to high-quality carbon credits under Article 6 of the Paris Agreement.
These credits are essential for companies to achieve corporate climate goals and support global sustainability efforts, as well as Singapore’s nationally determined contributions (NDCs).
The initiative was introduced by Ms. Low Yen Ling, Senior Minister of State at Singapore’s Ministry of Trade and Industry, at the Bloomberg Sustainable Business Summit, held on July 31 on the island.
SCMA is an exclusive alliance connecting international developers and suppliers of carbon credits with climate-committed companies in Singapore.
Through workshops and networking sessions, SCMA will enhance knowledge about high-quality credits and facilitate industry-government exchanges on carbon credit initiatives.
Relevant: IETA Issues New Guidelines For Corporates On Carbon Credits
The launch addresses the growing demand for high-quality carbon credits as Singapore moves towards a low-carbon economy.
With the city-state attracting numerous multinational companies, there is a strong interest in carbon credits to meet global sustainability targets.
Starting in 2024, companies in Singapore can offset up to 5% of their taxable emissions using international carbon credits, which is particularly crucial for hard-to-abate sectors.
Jacqueline Poh, Managing Director at EDB, emphasized SCMA’s role in connecting stakeholders and building knowledge around Article 6 carbon credits, highlighting their potential to unlock climate financing.
Dirk Forrister, President and CEO of IETA, endorsed Singapore’s efforts to develop a regional carbon market, stressing the importance of international collaboration to meet Paris Agreement goals.
IETA will provide SCMA with best practice guidance through its ICROA Accreditation Program, encouraging active participation from key carbon credit developers and buyers.
SCMA is part of Singapore’s broader strategy to establish itself as a carbon services and trading hub in Asia, hosting over 120 firms in the carbon management sector and investing in research on nature-based solutions.
Read more: Singapore Negotiates Carbon Credits Deals With Several Countries At COP28
