Singapore-headquartered, global environmental markets exchange Climate Impact X ( CIX ) has introduced CIX SG ICC Gateway, an initiative to streamline how companies procure credits eligible under Singapore’s international carbon credit ( ICC ) framework.
The initiative, supported by the Singapore Economic Development Board ( EDB ), this will see the exchange establish a centralized procurement venue, providing companies with an additional channel to source for eligible ICCs.
The main buyers of ICCs are companies covered by Singapore’s carbon tax. These companies may use eligible ICCs to offset up to 5% of their taxable emissions. ICCs can provide companies with additional flexibility in managing a portion of their compliance obligations, alongside efforts to reduce emissions.
CIX SG ICC Gateway, the exchange notes, aims to provide companies with an additional and more straightforward option to procure eligible ICCs as supply becomes available, reducing the need for companies to build their own sourcing, contracting and settlement capabilities.
By bringing demand together, the exchange will provide a new channel for buyers to benefit from more coordinated procurement, improve access to competitive pricing and lower administrative burdens.
Companies’ needs vary by the volume of ICCs required, procurement timelines, internal governance and preferred contracting structures. The exchange, it points out, will meet these through tailored routes to market, from pooled spot procurement to other approaches shaped by buyer needs and supply availability.
The venue, the exchange shares, builds on its existing infrastructure, which already connects to all ICC-approved registries, has facilitated live Article 6 and Corsia transactions and will help support transparent price discovery for eligible ICCs.
Efficient complement to decarbonization
The exchange’s initiative is designed around a clear hierarchy of action:
By easing the second step, the exchange aims to help companies manage compliance costs more efficiently, while channelling finance to high-integrity climate projects.
“Carbon procurement is challenging for many companies,” says Oi-Yee Choo, CIX’s CEO. “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.
“CIX provides the infrastructure that makes this process simpler, more transparent and more credible, giving companies confidence that they can meet their obligations using Singapore ICCs through a well-governed market.
“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.”
Lim Wey-Len, EDB’s executive vice-president, adds: “Connecting high-integrity carbon projects with credible demand is key to unlocking investment and scaling carbon markets. We welcome CIX’s SG ICC Gateway as an industry-led initiative that seeks to improve market access to carbon credits and provide clearer demand signals to carbon project developers.
“Such efforts can help channel climate finance towards high-integrity carbon projects, while strengthening Singapore’s contribution to building trusted, high-integrity carbon markets.”
