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Issue 51: CIX aims to set standard for carbon pricing; EU carbon tariff’s impact on S-E Asia rules

Kenneth Lim
Published Fri, May 26, 2023 · 07:00 PM
    • Prices of exchange-traded carbon credits have been falling over the past year alongside an increase in the use of standardised contracts.
    • Prices of exchange-traded carbon credits have been falling over the past year alongside an increase in the use of standardised contracts. ILLUSTRATION: KENNETH LIM

    In this issue: The race is on to create a standardised contract that will become a benchmark for voluntary carbon markets, while Europe’s tariffs on imported emissions have triggered only muted response from Asian governments.

    Singapore

    Who gets to sit on the carbon benchmark throne?

    The voluntary carbon markets (VCMs) still suffer from highly inefficient pricing. The price of reducing one tonne of carbon dioxide equivalent emissions can vary widely from one project to the next, and it’s extremely challenging for a buyer to figure out what’s the right price to pay for a credit.

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