COP31: Temasek-backed CIX launches procurement service for Singapore-eligible carbon credits

[SINGAPORE] Temasek-backed Climate Impact X (CIX) has launched a centralised procurement service for corporates to buy international carbon credits (ICC) eligible for offsetting their taxable emissions in Singapore.

Supported by the Economic Development Board, the initiative aims to give companies an additional, more straightforward way to procure eligible ICCs as supply becomes available, the carbon exchange said on Tuesday (Nov 10).

This reduces the need for companies to build their own sourcing, contracting and settlement capabilities.

“By bringing demand together, CIX will provide a new channel for buyers to benefit from more coordinated procurement, improve access to competitive pricing and lower administrative burdens,” said the firm.

Carbon tax-liable companies in Singapore are allowed to offset 5 per cent of their annual emissions, but only with credits that meet the city-state’s ICC framework.

The tax rate currently stands at S$45 per tonne of carbon dioxide equivalent, and is set to rise to between S$50 and S$80 by 2030, although the government indicated in this year’s Budget that the final rate could be closer to the lower end of the range if global climate momentum continues to weaken.

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But companies have so far been unable to use ICCs to offset their taxable emissions because of a lack of eligible supply.

While Singapore has awarded contracts to four carbon credit projects under its first request for proposals to offset the country’s emissions, none has yet generated credits authorised for transfer to the city-state.

As companies’ needs vary by the volume of ICCs required, procurement timelines, internal governance and preferred contracting structures, CIX said this new avenue will help meet these different demands through tailored routes to market.

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This could come in the form of pooled spot procurement to other approaches shaped by buyer needs and supply availability.

The venue builds on CIX’s existing infrastructure, which already connects to all ICC-approved carbon credit registries. This includes Gold Standard and Verra, the two most recognised registries in the world.

CIX has also facilitated live transactions under Article 6 of the Paris Agreement, which governs ICC transfers, and the aviation sector’s Carbon Offsetting and Reduction Scheme for International Aviation, and will help support transparent price discovery for eligible ICCs, it added.

Choo Oi-Yee, chief executive officer of CIX, said that carbon procurement is challenging for many companies.

“Buyers must navigate eligibility rules, fragmented supply, project due diligence, contracting and settlement – often without the specialist capabilities or market visibility to do so efficiently,” she added.

“By bringing demand together, we can also give suppliers a clearer signal of what the market needs, turning Singapore’s compliance framework into a catalyst for climate finance beyond our shores.”