DBS, Singapore Exchange, Standard Chartered, and Temasek have teamed up to establish a global marketplace dedicated to carbon credits, named Climate Impact (CIX).
This joint venture will leverage advanced technologies such as satellite monitoring, machine learning, and blockchain to enhance the transparency, integrity, and quality of carbon credits, ensuring they generate meaningful and enduring environmental benefits.
According to research by BCG, existing low-carbon technologies can only mitigate approximately two-thirds of global emissions, which may fall short of the targets set by the 2015 Paris Climate Agreement aimed at limiting global warming to a maximum of 1.5 degrees Celsius. CIX believes that high-quality carbon credits offer a viable approach to bridge this gap in the short term and are essential for a comprehensive climate mitigation strategy.
Set to launch by the end of the year, the CIX exchange will facilitate the sale of large-scale, high-quality carbon credits through standardized contracts, primarily targeting multinational corporations and institutional investors.
In addition, a separate initiative called Project Marketplace will serve a wider range of businesses interested in the voluntary carbon market, providing curated options for Natural Climate Solutions (NCS) projects to help them meet their sustainability goals.
As global demand for high-quality carbon credits in the voluntary carbon market is projected by McKinsey to increase significantly—potentially up to 1.5 to 2 gigatons of carbon dioxide annually by 2030—CIX positions itself as a critical player in this evolving landscape.
Mikkel Larsen, interim CEO of CIX and chief sustainability officer at DBS, emphasizes, “Climate Impact X will offer corporations a solution to tackle unavoidable carbon emissions in the near term while fostering the development of new carbon credit projects globally. Our initial focus on Natural Climate Solutions will not only address urgent biodiversity loss but also benefit local communities. CIX aims to harness collective action from governments, corporations, and individuals to achieve a net-zero economy.”