The joint venture is backed by DBS Bank, Standard Chartered, Singapore state investor Temasek and Singapore Exchange, as part of efforts to further combat climate change.
Climate Impact X, a new global exchange and marketplace for carbon credits, is set to launch in Singapore by the end of the year, according to an announcement on Friday.
CIX aims to provide «high-quality carbon credits to address hard-to-abate emissions» to multinational corporations (MNCs) and institutional investors, the partners said in a joint statement. There will also be a project marketplace that caters to a broader spectrum of corporates seeking to participate in the voluntary carbon market, offering them a selection of NCS projects that can help meet their sustainability objectives.
Growing Demand
In the announcement, CIX noted the growing global demand for high-quality carbon credits in the voluntary carbon market, which is estimated to increase at least fifteenfold by 2030, up to 1.5 to 2 gigatons of carbon dioxide (GtCO2) annually.
The marketplace will use satellite monitoring, machine learning and blockchain technology to enhance transparency, integrity and quality of carbon credits. It will also will be guided by an International Advisory Council – an independent expert body comprising non-governmental organizations, leading corporates and project developers, and academics and thought leaders.
«By facilitating a well-functioning marketplace with strong impact and risk data, CIX will enable efficient price discovery and catalyze the development of new projects,» said DBS chief sustainability officer Mikkel Larsen, who is also the interim CEO of CIX.
Natural Climate Solutions
The exchange and project marketplace will focus initially on natural climate solutions (NCS), which involve the protection and restoration of natural ecosystems such as forests, wetlands and mangroves.
«NCS are cost-effective and provide significant benefits by supporting biodiversity and generating income for local communities. Asia houses a third of the global supply potential and is, therefore, one of the largest suppliers of NCS globally,» the announcement said.
