Platform to ‘match-make' carbon credit project developers with buyers

It will help corporates here keen on sourcing high-quality credits identify reliable projects

- Shabana Begum

A national platform that will help "match-make" developers of carbon credit projects with potential buyers of such credits was launched on July 31.

The Singapore Carbon Market Alliance (SCMA) will help buyers keen on sourcing high-quality credits identify reliable projects, as it will be dealing with projects that supply credits compatible with the Paris Agreement.

Singapore-based corporates could buy these credits to advance their climate goals and offset part of their carbon tax.

One carbon credit represents one tonne of carbon dioxide (CO2) that is either prevented from being released into or removed from the atmosphere. These credits are created through renewable energy projects and other initiatives such as forest conservation, mangrove restoration and replacement of wood-burning stoves.

The SCMA is a collaboration between the Economic Development Board (EDB) and leta, a non-profit group that represents businesses committed to smart, well-designed and effective carbon markets around the world.

High-quality credits are aligned with the Paris Agreement's Article 6, which governs carbon trading between countries. A key criterion is that steps must be taken to prevent double-counting of emission reductions in both the credit buyer and the host country's national greenhouse gas inventories.