DBS, SGX, StanChart and Temasek Tackles Climate Action With Global Carbon Exchangeby Fintech News Singapore May 20, 2021
DBS, Singapore Exchange (SGX), Standard Chartered and Temasek joined forces to take climate action through a joint venture Climate Impact X (CIX) which aims to be a global exchange and marketplace for high-quality carbon credits.
CIX will offer distinct platforms and products that cater to the needs of different buyers and sellers of carbon credits which include the Exchange and the Project Marketplace, which are expected to be launched by end 2021.
The exchange will facilitate the sale of large-scale high-quality carbon credits through standardised contracts catering primarily to multinational corporations (MNCs) and institutional investors.
CIX will leverage satellite monitoring, machine learning and blockchain technology to enhance the transparency, integrity and quality of carbon credits.
Headquartered in Singapore, CIX will leverage the country’s financial, legal and commodities hub infrastructures for a trusted ecosystem of partners required to scale the global voluntary market.
Additionally, the Project Marketplace will cater to a broader spectrum of corporates seeking to participate in the voluntary carbon market, offering them a curated selection of Natural Climate Solutions (NCS) projects that can help meet their sustainability objectives.
To start with, CIX will focus on helping to catalyse the market for NCS, which involve protection and restoration of natural ecosystems such as forests, wetlands and mangroves.
The joint venture will be guided by an International Advisory Council, an independent expert body comprising non-governmental organisations, leading corporates and project developers, and academics and thought leaders.
CIX will also work with an ecosystem of global partners and international working groups, including the Taskforce on Scaling Voluntary Carbon Markets (TSVCM) and the Natural Climate Solutions Alliance, to align on leading standards for quality and integrity.
DBS, SGX, Standard Chartered and Temasek said in a joint statement that climate action is a key priority for them and they are confident that Climate Impact X will play a critical role in aligning the planet’s emissions profile to a net-zero future.
Singapore has been supportive of initiatives that strengthen the trust and verifiability of carbon credits, as part of the nation’s ambition to become a global carbon services and trading hub.
CIX is an initiative born out of Singapore’s Emerging Stronger Taskforce’s Alliance for Action (AfA) on Sustainability. The AfA on Sustainability aims to position Singapore as a hub for carbon related services and nature-based solutions, transforming the country into a “Bright Green Spark”.
Mikkel Larsen, Interim CEO of Climate Impact X and Chief Sustainability Officer at DBS, said:
“Climate Impact X will provide a solution for corporates to address unavoidable carbon emissions in the near term and propel the development of new carbon credit projects worldwide.
With an initial focus on Natural Climate Solutions, the carbon credits will also create impetus to address another grave risk of biodiversity loss and help serve local communities. CIX will build on collective action by global governments, corporates and individuals to achieve a net-zero economy.”
Featured image credit: Edited from Unsplash