The Singapore Economic Development Board (EDB) and IETA (formerly the International Emissions Trading Association) have launched the Singapore Carbon Market Alliance (SCMA), the first platform designed to facilitate access to high-quality Article 6 carbon credits to companies.
Launched by Senior Minister of State for Trade and Industry, Ms. Low Yen Ling, at the Bloomberg Sustainable Business Summit, the SCMA aims to help companies achieve their climate goals, contribute to global sustainability efforts, and support Singapore’s Nationally Determined Contributions (NDCs).
The SCMA is an exclusive alliance connecting top international carbon credit developers and suppliers with Singapore-based businesses committed to climate action and interested in acquiring Article 6 carbon credits. The platform will offer workshops and networking opportunities to enhance members’ understanding of high-quality credits and foster dialogue between industry and government on carbon credit policies and initiatives.
This launch comes as demand for premium carbon credits rises, with Singapore advancing towards a low-carbon economy. Singapore has successfully attracted multinational corporations seeking to meet their global sustainability objectives through carbon credits. Starting in 2024, companies in Singapore will be able to use international carbon credits to offset up to 5% of their taxable emissions. Access to high-quality credits will be particularly crucial for industries where low-carbon technologies are still developing.
“The Singapore Carbon Market Alliance (SCMA) will be a key platform for connection, knowledge-building and discussion around Article 6 credits. High-quality carbon credits can unlock climate financing and offer a complementary pathway for companies and countries, including Singapore, to meet climate goals,” said Jacqueline Poh, Managing Director, EDB.
“IETA fully supports Singapore’s efforts to develop a regional market for the trade in high- quality carbon credits. Achieving the Paris Agreement goals requires international collaboration 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,” said Dirk Forrister, President and CEO, IETA.
As a key player in the global carbon market, IETA will promote active engagement from carbon credit developers and buyers. Through its ICROA Accreditation Programme, IETA will provide best-practice guidance to SCMA participants.
The SCMA is a significant addition to Singapore’s efforts to become a leading carbon service and trading hub in Asia.