Launch of Singapore Carbon Market Alliance (SCMA) to enable access to and supply of high-quality carbon credits

SINGAPORE, JULY 31, 2024 – 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.

“The Singapore Carbon Market Alliance (SCMA) will be a key platform for connection, knowledge-building and discussion around Article 6 credits. High quality carbon credits can unlock climate financing and offer a complementary pathway for companies and countries, including Singapore, to meet climate goals. We look forward to partnering with IETA to bring leading companies together to foster a vibrant and trusted carbon market and strengthen Singapore’s leadership in carbon services and trading.” Jacqueline Poh Managing Director EDB

“IETA fully supports Singapore’s efforts to develop a regional market for the trade in high- quality carbon credits. Achieving the Paris Agreement goals requires international collaboration and Singapore’s position as a major global hub makes it an excellent candidate to drive forward the development of a truly international carbon market.” Dirk Forrister, President and CEO IETA.

IETA’s role as a convenor for the international business sector in carbon markets will encourage positive and active participation from key carbon credit project developers and buyers. Through its ICROA Accreditation Programme, IETA will also provide the SCMA with best practice guidance for sellers and project developers to participate in the scheme.

The SCMA adds to Singapore’s efforts to develop itself into an attractive carbon services and trading centre in the heart of Asia. Home to more than 120 firms across the carbon management value chain that support corporates and governments in Asia to transit to a low-carbon future, Singapore is also investing in research on nature-based solutions and shaping international carbon credit initiatives.

For further information on the SCMA, please refer to https://go.gov.sg/scma-sg.