SINGAPORE: On Wednesday, October 4, the Singaporean government outlined the requirements for purchasing global carbon credits that businesses can use to offset their taxable carbon emissions.
During the annual National Energy Efficiency Conference, Minister for Sustainability and the Environment Grace Fu unveiled the new standards, which are based on seven rules.
The new requirements will make sure that carbon credits have” high environmental integrity ,” according to her. & nbsp,
Global efforts to reach net zero must include the creation of efficient carbon markets that properly match the demand and supply of high-quality graphite credits, according to Ms. Fu.
Organizations in Singapore will have the choice to use qualified global carbon credits starting in 2024 to partially satisfy their carbon tax obligation. To assist Singapore in achieving net zero emissions by 2050, this was introduced in November 2022.
A carbon credit is earned through actions that seek to lessen, eliminate, or eliminate carbon pollution, such as reforesting trees or making investments in renewable energy.
It is a force or document that denotes an emissions reduction of one tonne of carbon monoxide. Businesses can offset up to 5 % of their deductible carbon emissions by purchasing these funds. & nbsp,
All features that generate at least 25, 000 kilograms of greenhouse gas emissions annually are subject to Singapore’s carbon tax. The duty, which was implemented in 2019, was initially set at Entropy$ 5 per kilogram but will increase to S$ 25 in 2024 and 2025, as well as S$ 45 in 2020 and beyond. & nbsp,
Foreign carbon credits offer businesses with difficult-to-abate emissions a different decarbonization route that enables them to route funding for global initiatives to reduce or eliminate emissions. & nbsp,
The problems of confirming the real effect of projects that generate carbon credits has been cited by opponents of carbon offsetting. The authenticity of these tasks is then checked using coal linking programs like Verra’s, one of the top certifiers in the world.
However, in a report published in January of this year by the British magazine The Guardian, Verra’s labor was questioned. According to the report, the majority of forest carbon offsets Verra approved were probably” ghost credits” with” no advantage to weather.”
In order to ensure that carbon credits upheld substantial economic integrity standards, Ms. Fu stated in her address to the report in Parliament that Singapore may critically examine all carbon markets and projects.
The National Environment Agency ( NEA ) and Ministry of Sustainability and the Environment ( MSE ) laid out the requirements for determining the types of international carbon credits that businesses in this country can use to lower their carbon tax bills in a joint press release released on Wednesday.
The certified emissions reductions or removals must have taken place between January 1, 2021, and December 21, 2030, in accordance with the 2015 Paris Agreement, as part of the criteria, & nbsp.
Global carbon credits must also adhere to seven rules that were developed after consultation with more than 70 stakeholders from business and non-governmental organizations. One of the strictest international standards, the Carbon Offsetting and Reduction Scheme for International Aviation ( CORSIA ), serves as a reference for the criteria. & nbsp,
According to the seven principles, carbon emissions must be reduced or eliminated as follows: & nbsp,
- Never double-counted or nbsp,
- Additional
- Real
- confirmed and quantified
- Permanent
- Not causing & nbsp, net harm
- No causing leaking or nbsp,
The pollution removals or reductions must only be counted again, according to the MSE and NEA. & nbsp,
They had to be qualified based on a liberal, reasonable, and defensible estimate of what would have been released if the project hadn’t been funded by carbon credits. & nbsp,
According to the government, they may be irreversible or, if there is such a threat, must have safeguards in place to track, lessen, or cover for such an event.
Additionally, emissions reductions or removals may be measured, verified, and calculated cautiously and honestly by a qualified third party.
The project that brought about the pollution reductions or removals must abide by the host country’s laws, regulations, and global obligations. Additionally, it must not raise emissions abroad, or if there is a risk of leakage, measures must be in place to track, reduce, and compensate for such an occurrence. & nbsp,
According to Ms. Fu,” We are developing the marketplace and rules concurrently with the goal of publishing a list of available carbon credit programs, methodologies, and host countries after this year.”
” This will give businesses advice on the economic unity standards of international carbon credits that will be accepted as carbon taxes counterbalance.”