On July 31, 2024, Singapore officially launched the Singapore Carbon Market Alliance (SCMA), a strategic move to reinforce the city-state's role as a leading carbon trading hub in Asia. SCMA, led by the Singapore Economic Development Board (EDB) and the International Emissions Trading Association (IETA), brings together major corporations, innovative startups, and government agencies with the aim of reshaping the carbon credit market in the region.
The launch of SCMA comes at a crucial time as global demand for high-quality carbon credits increases, particularly as businesses worldwide strive to reduce their carbon footprints. With its strategic location and robust financial infrastructure, Singapore is emerging as a leader in this growing carbon market.
Key Functions of Singapore Carbon Market Alliance (SCMA)
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Building Knowledge on Article 6 Carbon Credits: SCMA will focus on providing information and support regarding the authorization and access to carbon credits under Article 6 of the Paris Agreement.
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Updating and Exchanging Government Information: The alliance will facilitate updates and exchanges on Singapore’s government requirements and initiatives related to carbon credits.
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Connecting Buyers and Sellers: SCMA will act as a bridge between buyers and sellers of high-integrity carbon credits, ensuring effective and reliable transactions.
SCMA: Significant Contribution to Global Climate Action
SCMA aims not only to facilitate transactions but also to build a sustainable carbon ecosystem. The alliance is expected to play a critical role in hard-to-abate sectors where low-carbon technology is still developing. Access to high-quality carbon credits will provide these industries with an essential pathway to achieve sustainability goals while technology catches up.
IETA President and CEO Dirk Forrister highlighted Singapore’s potential in this field: “Singapore’s position as a major global hub makes it an excellent candidate to drive forward the development of a truly international carbon market.”
Industry Leaders' Reactions
Industry experts and leaders have warmly welcomed SCMA. Gerald Ng, Vice President of Regulatory Affairs and Sustainability at Changi Airport Group, emphasized SCMA's value in building networks and knowledge for reliable carbon markets. Similarly, Frederick Teo, CEO of GenZero, stressed the importance of information sharing to boost financing for climate solutions. He stated, “A robust carbon market, with appropriate guardrails and incentives, coupled with high-quality carbon credits, will be crucial in bridging the financing gap and accelerating climate action.”
Global tech giant Google, a founding member of SCMA, praised the initiative. Spencer Low, Head of Regional Sustainability at Google Asia Pacific, noted that SCMA complements Google's efforts to advance the transition to a zero-emission future.
SCMA adds to Singapore’s expanding portfolio of sustainability initiatives, with over 120 companies currently operating within the carbon management value chain in the city-state. Initiatives like SCMA are crucial in mobilizing private sector resources and expertise, reinforcing Singapore’s role as a regional leader in sustainability. The launch of SCMA marks a new chapter in Singapore’s sustainability journey, promising to accelerate the transition to a low-carbon economy for both the city-state and the broader Asian region.
Source: Sustainability news
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