Singapore Releases New Eligibility Criteria For International Carbon Credits

Singapore Releases New Eligibility Criteria For International Carbon Credits - Carbon Herald
Credit: Hu Chen | Unsplash

The Singapore Ministry of Sustainability and the Environment (MSE) and the National Environment Agency (NEA) announced on Wednesday, October 4th, the eligibility criteria of the international carbon credits that companies can buy to offset their taxable carbon emissions.

The new criteria under the International Carbon Credits (ICC) Framework entail seven principles and according to the Minister for Sustainability and the Environment Grace Fu, ensure that the carbon credits are of “high environmental integrity”.

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The ICC Framework is aligned with Article 6 of the Paris Agreement which ensures Singapore can cooperate with other countries to support their respective climate targets. Singapore’s eligibility criteria also require ICCs to be authorized by the host country for corresponding adjustment. 

The seven principles are for certified emissions reductions or removals that must have occurred between 1 January 2021 and 31 December 2030. The set criteria are: not double counted, additional, real, quantified and verified, permanent, no net harm, no leakage

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They come into force from 1 January 2024, among other upcoming developments. Carbon tax-liable companies can use eligible ICCs to offset up to 5% of their taxable emissions. The carbon tax applies to all facilities in the country producing at least 25,000 metric tons of greenhouse gas emissions in a year.

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