CARBON SERVICES AND CLIMATE FINANCE
The Region’s Top Commodities Trading Hub
Singapore is home to many energy traders, who make up most of the clientele for carbon services companies. This makes Singapore an ideal location for companies working on carbon projects in the region, especially since it is close to the biggest sources of carbon credits, India and China.
The Economic Development Board (EDB) and Enterprise Singapore (ESG) have engaged carbon companies to establish a presence here. These companies offer:
- Low carbon project development
- Consulting and verification services for clean development mechanism (CDM)
- Carbon footprinting
- Project financing
- Legal services
Protocol Clean Development Mechanism (CDM) and Carbon Credits Trading
In an effort to curb carbon emissions caused by industry and businesses, many developed countries enable companies to purchase carbon credits. These carbon credits can then be used to meet part of their emission reduction requirements.
As the main source of carbon credits, the Clean Development Mechanism (CDM) allows emission reduction projects in developing countries to earn certified emission reduction (CER) credits, which represent one tonne of carbon dioxide (CO₂) each. CERs can be traded, sold and used by developed nations to help them meet their obligations for emission reduction under the Kyoto Protocol.
As of 31 December 2012, more than 5,511 CDM projects have been registered worldwide since 2006, leading to over 2,191 million CERs being issued by the United Nations Framework Convention on Climate Change (UNFCCC).
Asia is a key supplier of carbon credits, with more than 82 per cent of registered CDM projects originating in the Asia-Pacific region. Our strategic location and ideal business environment make Singapore a prime location for trading and services companies wanting to develop carbon projects in the region.