Carbon credits, also known as carbon offsets, are permits that allow the owner to emit a certain amount of carbon dioxide or other greenhouse gases. By assigning a dollar value to emissions, carbon credits create a monetary incentive for companies to reduce their emissions.
Two of the world’s largest carbon credit players have been accused of overstating their environmental impact. Should Singapore still aim to be a hub for carbon trading?
At last November’s COP27 summit, Singapore signed or completed negotiations on partnerships with Ghana, Papua New Guinea, Peru and Japan to collaborate on carbon credits. In Egypt, Singapore joined over 60 countries in the so-called Article 6 Implementation Partnership, which, among others, aims to support “high-integrity carbon markets”.
