Written reply to PQ on Singapore as a global trading hub for climate-related services

Question

Assoc Prof Jamus Jerome Lim: To ask the Minister for Trade and Industry in light of efforts by the Government to develop Singapore as a global trading hub for climate-related services, what are the Ministry's efforts to spur demand for, and be an active participant in, this market.

Written Answer by Minister for Trade and Industry Mr Gan Kim Yong

1. As announced under the Singapore Green Plan 2030, Singapore aims to be a leading carbon services and trading hub, as part of our efforts to capture new business opportunities and create new jobs in the green economy. To achieve this, we are doing the following.

2. First, we are working with the private sector to develop a trusted and robust market for carbon credits. As part of the efforts under the Emerging Stronger Taskforce Alliance for Action on Sustainability, DBS Bank, Singapore Exchange, Standard Chartered Bank and Temasek will be setting up Climate Impact X, or the CIX, a global exchange and marketplace for high-quality carbon credits. The CIX will connect an ecosystem of partners, leveraging satellite monitoring, machine learning and blockchain to enhance transparency, integrity and quality of carbon credits.

3. Second, we are building carbon services and trading capabilities in Singapore. Government agencies are anchoring service providers that provide sustainability-related advisory, carbon project development, carbon trading, and assurance services to financial institutions and companies. Enterprise Singapore is also developing the Enterprise Sustainability Programme to help our companies strengthen their awareness and understanding of sustainability issues, including decarbonisation, which could increase demand for carbon services as enterprises take steps to improve sustainability of their operations.

4. Third, we are collaborating with international partners to promote cross-border credit transactions. Singapore is actively involved in the Article 6 negotiations of the Paris Agreement that govern international carbon markets. This year, Minister Grace Fu will be co-facilitating informal ministerial discussions on Article 6 leading up to the 26th United Nations Climate Change Conference of the Parties. In addition to contributing towards achievement of our Nationally Determined Contributions, the success of carbon markets will lead to overall mitigation in global emissions and generate demand for associated services at a global scale.

5. These efforts, coupled with Singapore’s robust legislative, commodities trading and financial services foundation, will put us in a good position to grow an internationally trusted carbon services and trading hub, and help companies seize new growth opportunities in the green economy.