DBS Bank (DBS), Singapore Exchange (SGX), Standard Chartered and Temasek announced their intention to join forces to take climate action through global carbon exchange and marketplace establishment in Singapore.
Through a joint venture to be established by the four parties, Climate Impact X (CIX) aims to be a global exchange and marketplace for high-quality carbon credits.
CIX Exchange and Project Marketplace to be focused initially on Natural Climate Solutions (NCS) to be launched by end 2021.
Driven by corporate climate commitments, global demand for high-quality carbon credits in the voluntary carbon market is estimated to increase at least fifteenfold by 2030, up to 1.5 to 2 gigatons of carbon dioxide (GtCO2) annually. Despite this forecast, there are still challenges to address in today’s market. For example, trust among investors and buyers may still be limited by a lack of transparency over the risks and effectiveness of carbon projects. As a result, suppliers may face challenges in developing new carbon reduction projects, resulting in liquidity issues.