Joint venture to establish Climate Impact X, a global exchange and marketplace for carbon credits
29 June 2021
On 20 May 2021, DBS Bank (“DBS”), Singapore Exchange (“SGX”), Standard Chartered, and Temasek announced their intention to jointly establish Climate Impact X (“CIX”), which aims to be a global exchange and marketplace for high-quality carbon credits. CIX will be headquartered in Singapore and is expected to be launched by end 2021.
Climate Impact X will use satellite monitoring, machine learning and blockchain technology to enhance the transparency, integrity and quality of carbon credits.
CIX is an initiative from 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.
Climate Impact X will commence with the launch of two key digital platforms: The Exchange and the Project Marketplace.
The Exchange will be a digital platform that enables buyers and suppliers to trade large volumes of high-quality carbon credits. The Carbon Exchange will facilitate the sale of large-scale high-quality carbon credits through standardised contracts, catering primarily to multinational corporations and institutional investors.
The Project Marketplace will be a digital platform for buying high-quality carbon credits directly from specific projects. Each project will be supported by transparent environmental impact, risk and pricing data.
At its commencement, CIX will focus on helping to catalyse the market for natural climate solutions (“NCS”), which involve protection and restoration of natural ecosystems such as forests, wetlands and mangroves. CIX will feature carbon credits from various high-quality NCS projects around the globe on its platforms. It is also in discussion with global rating agencies to provide independent ratings to these projects.
CIX will work with 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.
Reference materials
The press releases from the joint venture partners can be accessed at the following links:
More information about Climate Impact X is available from its website.