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FINANCIAL SERVICES | Staff Reporter, Singapore
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DBS, SGX, Standard Chartered, and Temasek team up to take climate action

The new joint venture will create a global exchange and marketplace for high-quality carbon credits.

Singapore Exchange (SGX), Standard Chartered and Temasek together with DBS, have joined forces to take climate action through a joint venture to establish Climate Impact X (CIX) which aims to be a global exchange and marketplace for high-quality carbon credits.

CIX will leverage satellite monitoring, machine learning and blockchain technology to enhance the transparency, integrity and quality of carbon credits that deliver tangible and lasting environmental impact.

“Global efforts to address climate change have been driving demand for solutions to help corporates effectively reduce their carbon emissions. However, today’s low-carbon technologies including current renewable energy solutions are unlikely to be enough in the near term,” DBS said.

CIX will offer distinct platforms and products that cater to the needs of different buyers and sellers of carbon credits. These 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.

In addition, 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 NCS projects that can help meet their sustainability objectives. Each project on the Project Marketplace will be supported by transparent environmental impact, risk and pricing data.

According to Mikkel Larsen, interim chief executive officer of Climate Impact X and chief sustainability officer at DBS, said that 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,” he added.

CIX will be headquartered in Singapore and will leverage the country’s internationally-recognised financial, legal and commodities hub infrastructures. These infrastructures are foundational to nurturing a trusted ecosystem of partners required to scale the global voluntary market. In addition, 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".
 

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