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Singapore unveils plan to host marketplace for carbon offsets

May 25, 2021

Bloomberg ($):

Singapore is launching a pilot project to trade carbon offsets, a move that could encourage more companies to buy certificates to cancel out their greenhouse gas emissions.

The new platform, known as Climate Impact X and backed by the island nation’s state investment firm, stock exchange and largest bank, will host a marketplace of nature conservancy projects that companies can invest in. It will also function as an exchange where offset credits can be freely traded.

To be successful, it will have to prove that the projects are actually effective at soaking up carbon dioxide from the atmosphere instead of offering companies a cheap way to keep polluting, a challenge that climate scientists have wrestled with for decades.

The pilot platform follows efforts by some private companies to offer trading in carbon offset products, but there is concern over whether these can be policed and standardized.

[Ann Koh, Chanyaporn Chanjaroen and Ishika Mookerjee]

More: Singapore to Launch Test Bed for Trading Carbon Offsets

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