Singapore sets eligibility criteria for international carbon credits to offset firms’ taxable emissions

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.”

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Artificial reef innovation under way

PTTEP and Department of Fisheries team up to develop reefs using carbon dioxide-based mineral stones

Artificial reef innovation under way
Divers inspect a reef infected by yellow-band disease off Sattahip in Chon Buri in 2022. Coral reefs are under increasing threat from pollution and global warming, and creating artificial reefs as a habitat for marine life is one way to reverse the damage. (Photo: Department of Marine and Coastal Resources)

The Department of Fisheries and PTT Exploration and Production Public Company Limited (PTTEP) have signed an agreement on developing artificial reefs from carbon dioxide-based mineral stones.

The memorandum of understanding also aims at further studying production of the material using a similar process that helps combat global warming.

Montri Rawanchaikul, chief executive and president of PTTEP, said the project focuses on applying technology in the process of transforming carbon dioxide into mineral stones to make sturdier reefs.

The technology is expected to help transform the chemical structure of carbon dioxide in concrete into calcium carbonate that can be deployed in reef production.

The reefs are meant to be habitats for sea creatures where they can live, breed and take refuge.

The Department of Fisheries has been working on artificial reef production since 1978 in line with its interest in sustainable fishery management, said director-general Chalermchai Suwanrak.

“This project aims to help with sea creature management as well as the recovery of their natural habitats,” he said. “The reefs are also aimed at improving the quality of life for fisherfolk as they can help with local fishing methods.”

The development’s focus also involves global warming. According to research, rising temperatures increase stress on sea creatures’ metabolic systems, which affect their breeding and growth.

Mr Montri said the artificial reefs responded well to the company’s aim to reduce carbon emissions, as PTTEP is looking to achieve net zero emissions by 2050.

PTTEP is keen on projects that lead to lower carbon emissions, such as the carbon capture and storage (CCS) project behind the country’s first CCS gas storage and refinery hub at natural gas platforms in the Gulf of Thailand.

PTTEP hopes to reduce the severity of global warming while helping the country achieve a goal promised to the United Nations to reach net zero emissions by 2065, said Mr Montri.

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Private sector crucial in the battle against climate change: ADB special advisor

Many of the world’s poorest countries are the least responsible for climate issues, but are bearing the brunt of the crisis. They are struggling to cope with natural disasters devastating infrastructure and livelihoods, and extreme temperatures affecting livestock and crops.

“Most of our developing member countries contribute virtually nothing to the climate problem. They are low emitters, per capita and national. However, they’re feeling the impacts,” he said.

“Helping them to move towards net zero is not about their commitment to low carbon but rather, energy security and better air quality in their cities.”

Where governments may have failed to act, Mr Evans is, however, optimistic about increasing interest from the private sector on investing in sustainable developments, green initiatives and climate-friendly adaptations.

“My optimism is not based on what governments are doing, but rather, based on what the private sector is doing,” he said.

“The interest of the private sector in working with us and with other multilateral development banks, to use the sovereign funding and the public sector money that we have, to help enable them to invest in climate actions, is making tremendous progress right now.” 

ASIA PACIFIC PLAYS CENTRAL ROLE

The ADB has said the battle against climate change will be won or lost in Asia Pacific.

The region is home to 60 per cent of the global population – some 4.3 billion people, and includes the world’s top two most populous countries India and China.

It has five of the 10 largest emitters in the world – China, India, Indonesia, Japan, and South Korea – and accounts for about 45 per cent of global greenhouse gas emissions.

Asia Pacific is also where 40 per cent of the world’s climate-related disasters have happened since the start of the century, with increasing frequency and intensity.

Hence, the region plays a central role in global climate efforts.

The ADB said the battle against climate change will be costly, with an estimated US$1.7 trillion needed every year to invest in infrastructure in the region.

FUNDING PLAN TO COMBAT CLIMATE CHANGE

The bank recently launched a new funding programme to support lending efforts that help the region reduce greenhouse gas emissions and build infrastructure resilient to the impact of climate change.

Known as the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP), wealthier nations such as the United States, United Kingdom, Denmark, Sweden, Japan and South Korea will guarantee some loans and shoulder losses in cases of default.

The initial target is US$3 billion in guarantees. The bank believes this will help to generate five times as much – some US$15 billion – in new climate loans.

“The IF-Cap works by taking guarantees from donor countries and using that to essentially carve out part of our existing sovereign portfolio. These are existing loans that developing countries take with ADB that have sovereign guarantees. We have a very, very low risk of default for these kinds of loans,” said Mr Evans.

The plan will support projects that address mitigation with a focus on reducing greenhouse gas emissions, and adaptation with an aim to build resilience against the impacts of climate change.

The bank said these investments could cover a wide range of sectors, such as transportation, energy, urban, and agriculture.

While the lender has made progress in multiple areas including increasing resilience to flooding, cooling efforts in cities with high temperatures, rehabilitating wetlands, promoting renewable energy including wind and solar, more needs to be done, said Mr Evans.

“We have in both the urban sector and rural sector, a number of initiatives that are paying back dividends now, in terms of building resilience. We have many success stories, but we’re not at the scale we need to be. We need to bring this all together and scale it up,” he said.

“The risks from climate impacts are severe. Every greenhouse gas emission reduced is important. Every household can play a role in that. Not so much in the poorer countries, but in the middle income countries, and in the richer countries, every household needs to play a role in reducing their carbon footprint.”

On Friday, the bank unveiled new capital reforms to boost lending by US$100 billion over the next decade as part of its continued mission to tackle climate change.

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EY Center for Sustainable Supply Chains launches in Singapore

Comprises team of 50+ climate change and sustainability professionals
Focus areas include traceability, supply chain decarbonisation, circular business models & tax incentives

The EY organisation recently launched the EY Center for Sustainable Supply Chains. Based in Singapore, the Center provides tailored service offerings that help organizations at every stage of their supply chain…Continue Reading

Indonesian PPP player secures syndicated sustainability-linked facility | FinanceAsia

PT Sarana Multi Infrastruktur (PT SMI), a dedicated infrastructure entity under the jurisdiction of Indonesia’s Ministry of Finance, announced recent success in obtaining a $700 million sustainability-linked syndicated term loan facility. The firm serves as a financing vehicle for the development of nationally significant infrastructure projects, through public-private partnerships (PPPs).

“This syndicated loan is intended to refinance existing projects as well as to fulfil new financing needs primarily for sustainable infrastructure projects in Indonesia,” the press release noted.

The new funds will be used to refinance a maturing $700 million offshore syndicated term loan that was first arranged in 2020. The sustainability-linked offering closed on September 13 with aggregate commitments of $1.8 billion and was 2.6 times oversubscribed.

Key performance indicators (KPIs) linked to the facility include growing the company’s sustainability financing portfolio, and increasing the number of employees undertaking environment, social, and governance (ESG) training.

Green opportunity

Speaking to FinanceAsia about the transaction, Colin Chen, head of ESG finance for Asia Pacific at MUFG Bank, which served as one of the transaction’s mandated lead arrangers and bookrunners (MLABs), highlighted the opportunities brought by sustainability-linked financing for companies active in “hard-to-abate sectors,” given no requirements around the use of proceeds.

Kunardy Lie, director of institutional banking at DBS Indonesia – also a MLAB – said his team sees “abundant opportunities” to push the sustainability agenda through green and transition financing solutions in the local market.

Although emerging economies like Indonesia are tasked with driving economic growth alongside a low carbon budget, environmental and socially-conscious funding initiatives can help advance sustainability agendas, Lie noted. He cited the market’s PPP scheme as a policy catalyst which convenes industry players, financial institutions and regulators to establish common practices to approach ESG issues.

First introduced in 2005, the state-backed PPP Project Book lists out a range of infrastructure projects that are open to private sector participation, with a view to bridging the existing infrastructure funding gap and driving Indonesia’s national economy. PT SMI is actively involved in the scheme and acts as a crucial financier in some of the key national infrastructure projects.

“We are excited to support PT SMI in their venture to finance ongoing projects including sustainable infrastructure projects,” Lie said, noting that DBS’s relationship with PT SMI started in February 2020 around the arrangement of the original working capital facility.

Renewables projects, as well as other forms of energy transition segments constitute growing sub-sectors within the domestic infrastructure market, Chen added.

He cited supportive policy initiatives, including the Just Energy Transition Partnership (JETP) which was signed off during last November’s G20 summit, and the country’s rich solar and wind resources as helping to drive Indonesia’s developing green economy.

“We will want work closely with policymakers and the private sector to leverage this important initiative in support of Indonesia’s net zero transition,” Chen said.

“This sustainability-linked syndicated term loan facility is a real example of innovative fundraising, by also implementing our commitment towards sustainability target,” Edwin Syahruzad, president director of PT SMI, commented in the press release.

In addition to DBS and MUFG, the MLABs for the transaction included Bank of China (Hong Kong), CTBC Bank Co., Ltd., Mizuho Bank, and United Overseas Bank (UOB). UOB also acted as the MLABs’ transaction and overall sustainability coordinator for the transaction.

PT SMI and the remaining MLABs did not respond to FA’s requests for comment.

¬ Haymarket Media Limited. All rights reserved.

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S0 million in proceeds from first sovereign green bonds put towards expansion of Singapore’s rail network

In the report, MOF stated that the expansion of public transportation system and an electric rail system is essential to reducing the carbon footprint in this business, with the property transfer sector currently accounting for about 15 % of carbon emissions in Singapore.

The Monetary Authority of Singapore( MAS ) added in a separate press release in August 2022 that the expansion of the country’s electric rail network would improve connectivity and encourage more commuters to use mass public transportation.

The Singapore Green Plan 2030’s” Sustainable Living” pillar, which aims to achieve a 75 % mass public transportation modal share, is supported by the development of the JRL and CRL & nbsp. & nbsp,

According to Ms. Rajah,” the expansion of our energy road network is a key enabler to reach our ambitious target of substantially reducing land transportation emissions in absolute terms, in line with Singapore’s target of achieving net zero by 2050.”

According to MOF, when both lines are fully operational, a complete annual carbon monoxide equivalent of between 100,000 and 120 000 kilograms will be saved.

” This is comparable to removing 22, 000 vehicles from Singapore’s roads ,” nbsp

According to MOF’s report, it & nbsp hired Morningstar Sustainalytics, an independent consultant, to create a methodology to calculate the avoided greenhouse gas emissions and air pollutants due to investments in the electric rail projects. & nbsp,

It was also stated that the amount of greenhouse gas( GHG ) emissions avoided by the project ranged from & nbsp, 100,000 to 120, 000 tCO2e per year, and the quantity of emissions financed, 1, 200, to 1, 800, respectively. Both figures had two major figures rounded out of them.

Coming natural bond reports will include yearly updates on the estimated effect.

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Expo focuses on sufficiency

Expo focuses on sufficiency
Customers are interested in the Sustainability Expo 2022″ Better Living” area, which highlights top organizations advancing the elliptical market and green growth to reach net zero greenhouse gas emissions. ( Varuth Hirunyatheb, photos )

At the end of this month, the Sustainability Expo 2023 ( SX2023) will be held with the theme” Good Balance, Better World.”

The annual exhibition, which is regarded as the biggest conservation event in the Asean area, will be held for the fourth season with a focus on” Sufficiency for Sustainability” to encourage customers to take part in and work on sustainable techniques and information, along with several engrossing workshops.

Leading local and international businesses may present conservation developments and innovations at the event. Eight significant districts may be present in SX 2023.

Visitors will embark on a journey through the” SEP Inspiration Zone” where they will gain knowledge from trailblazers and experts in sustainable development.

SEP is an acronym for the validity economy theory developed by His Majesty King Bhumibol Adulyadej The Excellent.

Guests can learn more about food technology, healthcare, and longevity in the next zone,” Better Me.” Leading initiatives related to a circular economy leading to net zero emissions are highlighted in the” Better Living” area.

At the Sustainability Expo 2022, kids will learn how to separate recovered spend by placing plastic bottles in a recycling package.

With more cosmopolitan green spaces, cover for the underprivileged, and a concept of sustainable community development, the” Better Community” zone demonstrates how everyone is united to support one another and promote equality.

An SX location and art museum highlighting conservation viewpoints from local and international musicians can be found in the” Better World” area.

The” SX Food Festival” serves food with the theme” Thai Street Food Museum ,” where visitors can see landmarks from Bangkok, Phuket Old Town, and other major cities while tasting food prepared by famous chefs who use the zero-waste cooking method.

The final two zones are” SX Marketplace ,” which has 200 stores selling environmentally friendly goods and community goods, and” X Kids ,” where kids can take advantage of a creative learning environment for sustainable development.

The Queen Sirikit National Convention Center will host the SX 2023 from September 29 to October 8. Explore its site at or Facebook account at website for more details. Alternatively, visit sustainabilityexpo.com / sx / or Facebook account at www. facebook.com / SX. Sustainability Expo

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Russia hails unexpected G20 ‘milestone’ as Ukraine fumes

A handout photo made available by the Indian Press Information Bureau (PIB) shows Indian Prime Minister Mr. Narendra Modi (front R) walking with US President Joe Biden (front L) and other world leaders upon arrival at the Mahatma Gandhi"s memorial in Rajghat, New Delhi, India, 10 September 2023.EPA

Sergei Lavrov, the foreign secretary of Russia, has praised a joint statement made in Delhi by the G20 leaders that refrains from denouncing Moscow for its war against Ukraine.

According to Mr. Lavrov, Russia had not anticipated a compromise and that deal on the language was” a step in the right direction.”

The final G20 statement condemned using force for regional gain but left out any mention of Russian hostility, which drew criticism from Ukraine.

The African Union was even admitted as a permanent part during the two-day height.

The 55-member union joins at the offer of hosts India, whose president has made it a priority to increase the inclusion of so-called Global South nations in the G20.

Although there was censure of the tournament’s failure to send to phase-outing fossil fuels, the largest economies in the world reached another significant agreements in Delhi, including one on weather and biofuels.

There was no established G20″ family picture” for the second time in a column. There was no explanation given, but according to reports, many officials declined to be photographed, indicating that Russia was present at the conference.

Some people, not least on the summit’s opening moment, had anticipated a joint announcement at the G20 this year. Regarding Russia’s invasion of Ukraine last year, the group is bitterly fragmented. Neither Xi Jinping of China nor Vladimir Putin of Russia showed up in Delhi, sending lower-level ambassadors in their place.

Therefore, it came as a shock when Indian Prime Minister Mr. Narendra Modi announced that the Ukraine part of the statement, which had last month’s direct criticism of Russia watered down, had reached consensus just hours after the summit began.

On Sunday, Mr. Lavrov declared that a” step” had been accomplished.

Sincerely, we didn’t anticipate that. We were prepared to defend the text’s language. In response to a query from the BBC’s Yogita Limaye, he stated that” the Global South is no longer willing to be lectured.”

The joint statement was promoted by the UK and the US as well, but Ukraine, which attended the Bali summit last year but was not invited this year, claimed it was” nothing to be happy of.”

Prime Minister Mr. Narendra Modi of India welcomes leaders during opening session of the G20 Leaders' Summit on September 9, 2023 in New Delhi, Delhi.

Getty Pictures

The majority of users expressed” in the strongest terms” their regret for the Russian Federation’s aggression against Ukraine in Bali next year. The Delhi announcement, in contrast, discusses” the people suffering and additional negative effects of the war in Ukraine with regard to international food and energy security.”

In addition to urging state to” abstain from the threat or use of force to get regional skill ,” which could be interpreted as being directed at Russia, it also mentions” different views and analyses of the condition.”

According to analysts, the G20’s financial balance and power dynamics are shifting apart from Western developed market economies and toward emerging giants, especially in Asia.

There were other significant events at the tip as well, such as significant agreements aimed at combating climate change.

A complete agreement has been reached among the G20 members to” do and stimulate efforts to triple global renewable energy capacity through existing targets and policies.” More than 75 % of the nation’s greenhouse gas emissions come from the union.

In order to encourage the use of cleaner fuels, India also established a global biodiesel alliance with the US and Brazil. By facilitating industry in renewables made from plant and animal waste, the clustering aims to hasten international efforts to achieve net zero emissions targets.

India's Prime Minister Mr. Narendra Modi (C) along with world leaders pays respect at the Mahatma Gandhi memorial at Raj Ghat on the sidelines of the G20 summit in New Delhi on September 10, 2023.

Getty Pictures

On the outside of the conference, there was also a global road and port agreement connecting the Middle East and South Asia. The agreement is seen as a response to China’s Belt and Road initiative to improve world equipment.

Mr. Modi concluded months of hype and excitement by closing the summit early on Sunday evening. President Luiz Inacio Lula da Silva of Brazil, who is assuming the presidency, received a royal hand from him.

President Lula’s talk was largely focused on issues facing developing nations.

He claimed that” we are living in a world where money is more concentrated, where millions of people continue to go hungry, in which sustainable development is perpetually threatened, and where global government institutions still reflect the reality of the 20th century.”

Leaders walked in the rain to honor Mahatma Gandhi, India’s independence warrior, at the location of his death because the rain downpours had derailed some earlier-in-the-day plans. A meeting to plant trees was downgraded to a symbolical swap of trees between G20 presidents in the past, present, and potential.

Delegates were treated to social shows, a gala dinner party, and the best of American hospitality as part of Mr. Modi’s luxurious show, which was put on from beginning to end.

However, it also sparked some debates, particularly after Mr. Modi’s sign, which introduced India as” Bharat”( which means India in Hindi ) as he opened the summit, suggested that the nation might change its name.

But, Mr. Modi and his officials hailed the occasion as a huge success and claimed that India’s G20 administration had demonstrated its leadership skills on the international stage.

Foreign Minister S Jaishankar stated,” We have sought to make this G20 as inclusive as possible.”

According to Nirmala Sitharaman, the finance minister, India has succeeded in preventing issues from obscuring the fundamental development issues facing the world.

She stated that” India’s G20 Presidency has walked the discuss safely.”

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Governments need to catalyse private capital for world to be net zero by 2050: PM Lee at G20 summit

Mr. Lee also discussed how new markets and technologies provide” trust” for nations like Singapore that are dealing with inherent difficulties in climate transitions, in addition to fresh borrowing models.

For instance, Singapore has created a national plan to use gas, one of the burgeoning technologies that can aid in the country’s shift away from carbon emissions and toward green energy. & nbsp, It was revealed in October of last year that by 2050, low-carbon hydrogen could meet up to half of Singapore’s power needs.

Establishing dependable and adaptable global supply chains with global partners may be necessary for the validity of scaling up gas deployment. No nation can accomplish this on its own, Mr. Lee continued, adding that Singapore is eager to collaborate with” like-minded partners” to broaden its power base.

Regarding new areas, Mr. Lee remarked that institutions will need to cooperate in order to foster investments in decarbonization, such as by defining what natural and change activities are.

The first step in determining effective strategies to combat climate change, create new markets, and immediate funding to where it is most needed, according to The & nbsp, is the development of various prevention policies.

Singapore supports multilateral strategies for achieving mitigation objectives for this reason, such as the inclusive forum on carbon mitigation strategies hosted by the Organization for Economic Co-operation and Development ( OECD ).

New markets, new funding models, and new technologies will both necessitate international cooperation, which the G20″ can and should offer” leadership for, he continued.

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Singapore expands study islandwide to assess geothermal energy as potential power source

Singapore is a small, resource-constrained nation with few possibilities for solar power and imports almost all of its energy requirements.

In order to help Singapore’s global climate commitment to achieve net zero emissions by 2050 while also enhancing the nations energy endurance, EMA is investigating indigenous energy choices other than renewable.

In order to achieve net zero emissions as soon as possible in the second half of the century, Singapore has committed to halving its 2030 top greenhouse gas emissions by 2050.

Singapore would be one of the first nations to install next-generation thermal systems in a densely populated city, according to EMA, if it adopted the practice in the future.

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