On 31 July 2024, the Singapore Economic Development Board (EDB) and IETA (formerly the International Emissions Trading Association) announced the launch of the Singapore Carbon Market Alliance (“SCMA“). The SCMA is the latest initiative to increase Singapore’s leadership as a regional hub for carbon services and trusted carbon markets.
The SCMA is the first platform in Singapore aimed at helping companies obtain access to high quality carbon credits that are compatible with Article 6 of the Paris Agreement, enabling companies to meet their corporate climate goals while simultaneously contributing towards Singapore’s Nationally Determined contributions.
The SCMA is a by-invitation-only alliance that consists of three main pillars:
- connecting leading international developers and suppliers of carbon credits with Singapore-based corporates with strong climate commitment and interest in purchasing carbon credits aligned with Article 6 of the Paris Agreement;
- building members’ knowledge on enabling and accessing high-quality credits through workshops and networking sessions; and
- facilitating exchanges between the industry and the Government on Singapore’s requirements and initiatives in carbon credits.
From 2024, carbon-taxable companies in Singapore, which mostly fall within hard-to-abate sectors where commercial scaling of low-carbon solutions take more time to achieve, can use eligible international carbon credits to offset up to 5% of their taxable emissions. Hence, the necessity for initiatives such as the SCMA to facilitate knowledge-building and access to high-quality eligible carbon credits that support global sustainability ambitions.
Click on the following link for more information:
- Singapore Economic Development Board and IETA Media Release titled “Launch of Singapore Carbon Market Alliance (SCMA) to enable access to and supply of high-quality carbon credits” (available on the gov.sg website at sgpc.gov.sg.
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