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 in Singapore aimed at helping companies obtain access to high- quality Article 6 carbon credits. These credits can help companies meet their corporate climate goals, contribute to global sustainability ambitions, and can be used towards Singapore’s Nationally Determined Contributions (NDCs). The initiative was launched today by Senior Minister of State, Ministry of Trade and Industry, Ms Low Yen Ling, at the Bloomberg Sustainable Business Summit.
The SCMA is a by-invitation-only alliance that will connect leading international developers and suppliers of carbon credits, with Singapore-based corporates with strong climate commitment and interest in purchasing Article 6 carbon credits. Through workshops and networking sessions, the SCMA will build members’ knowledge on enabling and accessing high-quality credits. It will also facilitate exchanges between industry and the Government on Singapore’s requirements and initiatives in carbon credits.
The launch of the SMCA comes amidst growing demand for high-quality carbon credits as Singapore moves towards a low-carbon economy. Singapore has remained successful in attracting new regional headquarters and manufacturing plants from many multinational companies. There is strong interest from these companies to purchase carbon credits to meet their global sustainability goals. In addition, from 2024, companies in Singapore will be allowed to use international carbon credits to offset up to 5% of their taxable emissions1. Access to high-quality carbon credits will be especially important for companies in hard- to-abate sectors, where low-carbon technologies will require more time to become commercially available.
