Singapore to Launch CIX Carbon Credit Trading Platform at the end of December
- 01-Dec-2021 4:00 PM
- Journalist: Francis Stokes
Singapore is set to launch a new global Carbon Credit trading platform (CIX). The CIX platform will play a vital role in reforming the Singapore carbon market. Earlier in May, it is reported that CIX is jointly backed by Singapore’s largest financial group DBS Group, UK’s Standard Chartered Bank, Temasek Investment Group, and Singapore Stock Exchange. Recently, In Singapore International Energy Week (SIEW), Singapore’s Energy Market Authority (EMA) stated that Singapore is mapping out a long-term plan to import natural gas, low-carbon electricity imports, renewable energy, hydrogen, and other feasible alternatives and technologies including carbon capture utilization and storage (CCUS). All of this to attain the order for decarbonization of power supplies, and curtailing carbon emissions from fossil fuels.
The long-term anticipated 26th United Nations Climate Change Conference of the Parties (COP 26) was organized at Glasgow in early November. COP 26 has been marked as the last chance for averting disastrous climate change. Where delegation of countries around the globe worked tremendously to reach a common agreement on key issues, with the ability to potentially assist to control the impact of global warming. Whereas the Singapore delegation led by Grace Fu (Minister for Sustainability and the Environment) was engaged in a variety of topics, including about the carbon markets. The statement also highlighted Singapore’s Green Plan and Hydrogen which showcased strong near-term plans to outline Singapore’s recent decarbonization initiatives to achieve net zero-emission.
Carbon Trading also termed Emissions trading, as set out in Article 17 of the Kyoto Protocol, which permits the countries that have emission units to spare - emissions permitted them but not "used" - to trade this surplus capacity to countries that surpass their emission targets. Therefore, a new commodity was created and introduced in the form of emission reductions or removals. Since carbon dioxide is the principal greenhouse gas, industries elaborated this phenomenon as trading in carbon dioxide. carbon dioxide is now tracked and traded like any other commodity. This is known as the " carbon dioxide market.