Banks’ carbon credit offerings will not turn the tide for the struggling market

WHILE banks in Singapore have started to offer carbon credit-related products and services as part of a suite of decarbonisation solutions for their corporate clients, it is not a panacea for South-east Asia’s fledgling carbon market – which has been affected by the global slump in carbon trading after several greenwashing scandals.

Ultimately, ensuring that carbon credits generated and sold are of high quality – through regulatory framework and universal standards – is what will eventually reverse the fortune of the market, said market observers.

The three local banks have followed in the footsteps of their global counterparts, having set up emissions trading desks and offering carbon financing or trading for their clients in the last few years.