Connect with us

Business

Climate Impact X – A Major Step Towards Decarbonization

Climate Impact X

Global carbon emissions primarily from industrial processes involving fossil fuel combustion have increased substantially since 1900. Climate change caused by this is a global issue, which asks for long-term solutions. Though efforts to effectively combat climate change are made internationally, they are not enough to limit global warming to “well below 2°C” as agreed in the December 2015 Paris Agreement.

Demand for greenhouse gas emission offsets is increasing, especially after the 26th Conference of the Parties (COP), which reaffirmed the global efforts to decarbonisation. Carbon credits and carbon exchange are an initiative towards it and Climate Impact X (CIX) is a voluntary marketplace to deal with climate change by providing high-quality carbon credits to companies. 

What is Climate Impact X?

Climate Impact X is a joint venture led by DBS Group, Singapore Exchange, Standard Chartered Financial Services Company, and Temasek Holdings. Based in Singapore, CIX serves as an international platform for companies to buy and sell high-quality carbon credits. Thereby, it will help meet the annual global demand for carbon credits, which is expected to ‘increase by a factor of 15 or more by 2030′ according to McKinsey’s research for the Taskforce on Scaling Voluntary Carbon Markets’ (TSVCM) report.

CIX is instrumental in developing several innovations for scaling the voluntary carbon market. Its pilot auction in October 2021 included 8 forest conservation and restoration projects across the world and 19 buyers from different industries.

How is CIX different from other carbon exchanges?

Some regions and countries have developed emissions trading systems to have a price for carbon emissions. Carbon exchanges and online marketplaces are set up for selling carbon credits. When compared to those, Climate Impact X is different in the following ways:

  • CIX will ensure that it will maintain high integrity, quality, and transparency of carbon credits using advanced technologies like satellite monitoring, blockchain, and machine learning
  • Projects with substantial environmental and social impacts have a high bar set to ensure their quality and integrity. CIX is an ideal platform that brings both high-integrity buyers and reputed suppliers to work together on enhancing the integrity and quality of projects in carbon offsetting.
  • CIX can offer greater transparency through a comprehensive rating framework to both buyers and investors.
  • Buyers and suppliers can use the CIX’s data to have a fair market price for purchasing and selling carbon credits with co-benefits. The carbon credits are priced based on various factors for offsetting emissions. In a way, carbon removal projects are more expensive than carbon avoidance projects.
  • With a range of products and platforms like curated portfolios, content-rich markets, and innovational auctions, CIX can meet the diverse needs of the community of suppliers and buyers.
  • CIX adopts the best practices in maintaining the carbon market standards and integrity by aligning with the Natural Climate Solutions Alliance and the Taskforce on Scaling Voluntary Carbon Markets (TSVCM). For the purpose, it has also formed an International Advisory Council.

Climate Impact X, headquartered in Singapore, will be a global trading platform for carbon credits. With The Exchange platform, CIX will facilitate buying and selling of high-quality carbon credits via standardized contracts.

In conclusion, CIX is trying to establish a profitable carbon marketplace to help suppliers and buyers trade carbon credits at a fair value. The initiative has caught the attention of multinational companies like Amazon, Microsoft, Google, and Grab, which are also trying to offset emissions through innovations.

With leading companies behind it, Climate Impact X can use Singapore’s global trade ties, technical infrastructure, and fast-growing economy to help create a sustainable counterstep for greenhouse gas emissions.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Trending