Climate Impact X

Climate Impact X

An international marketplace
for high-quality carbon credits

Climate Impact X

An international marketplace
for high-quality carbon credits

Road to Carbon Neutrality

Global efforts to address climate change have been driving demand for solutions to help corporates effectively reduce their carbon emissions. 

However, today’s low-carbon technologies are estimated to only reduce two-thirds of the emissions1 required to keep global warming under 1.5 degrees Celsius as stipulated in the 2015 Paris Climate Agreement.

Carbon credits provide a practical solution to bridge this gap and can play an important role in a holistic decarbonisation strategy.

1BCG, “The Next Generation of Climate Innovation”, 2021

Introducing Climate Impact X

Climate Impact X, or CIX, is envisioned to be world-class carbon exchange and global marketplace to provide corporates with high quality carbon credits and effective solutions to tackle climate change. CIX will help to meet global demand for high-quality carbon credits, which is estimated to increase at least fifteenfold by 2030 to 1.5 to 2 GtCO2 annually2.

It will be the world’s first carbon exchange and marketplace to use satellite monitoring, machine learning and blockchain technology to enhance transparency, integrity and quality of carbon credits.

CIX will be headquartered in Singapore to leverage the country’s internationally recognised financial and legal infrastructure.

2McKinsey, “A blueprint for scaling voluntary carbon markets to meet the climate challenge”, 2021

 

The CIX Difference

While there are a small number of competing carbon exchanges and a number of online marketplaces selling carbon credits, CIX is differentiated in the following ways:

  • A high bar is set on projects delivering credits to CIX, ensuring their integrity and delivery of environmental and social impact. CIX also brings together leading suppliers and high-integrity buyers to collaborate in raising the bar on quality and integrity in carbon offsetting.
  • CIX will use satellite monitoring, machine learning and blockchain technology to enhance transparency, integrity and quality of carbon credits.
  • Comprehensive ratings framework to provide investors and buyers with greater transparency.
  • Committed forward volumes at agreed reserve pricing by leading buyers will help developers catalyse longer-term supply.
  • CIX’s data platforms will support suppliers and buyers in finding a fair market price for carbon and co-benefits. Buyers will also commit to reserve prices that allow communities to invest in supporting livelihoods and conservation.
CIX’s Focus

CIX’s initial focus will be to catalyse the market for Natural Climate Solutions (NCS). These are solutions which involve the protection and restoration of natural ecosystems such as forests, wetlands and mangroves. According to the US-based National Academy of Sciences, NCS could potentially provide about one-third of the emission reduction targets by 2030 (about 7 GtCO2). NCS are also cost-effective and provide significant benefits such as supporting biodiversity and generating income for communities.

The CIX Ecosystem
  1. Carbon Exchange

    Catering primarily to companies and institutional investors, the Exchange will facilitate the sale of large-scale high-quality carbon credits through standardised contracts. This enables the pooling of a high volume of credits across multiple projects that meet quality requirements and provides the market with greater price transparency.

  2. Project Marketplace

    The Project Marketplace enables the purchase of high-quality carbon credits directly from specific projects. The Project Marketplace is well-suited for SMEs, as it provides a curated selection of NCS that can address their specific sustainability challenges. Every listing on the Project Marketplace will be supported by transparent impact, risk and pricing data.

Why Singapore

CIX is an initiative borne out of Singapore’s Emerging Stronger Taskforce’s Alliance for Action (AfA) on Sustainability. The AfA on Sustainability aims to position Singapore as a hub for carbon-related services and nature-based solutions and transform the country into a "Little Green Dot”.

CIX will leverage Singapore’s position as a leading international financial and legal hub to attract and cultivate a trusted ecosystem of partners to develop the global voluntary carbon market.

Get in Touch

CIX is working on number of exciting developments and we look forward to sharing further updates soon. Meantime, we invite you to participate in the following ways:

  • For suppliers and buyers of high-quality carbon credits to discuss opportunities for joining CIX.
  • For organisations that share our vision of scaling the global voluntary carbon market to explore opportunities for collaboration and ecosystem partnerships.

If you have any queries, please reach out to us here.

FAQs
What is DBS’ role in the CIX?

DBS has been focusing on helping our clients transition to a low carbon economy, but they like us, still can’t get to the last mile and this is where carbon credits fit in. 

Climate Impact X will provide an effective solution for corporates to offset unavoidable carbon emissions in the near term and propel the development of new carbon credit projects worldwide through high-quality carbon credits. Carbon credits are an effective way for corporates to neutralise unavoidable carbon emissions in the near term.

Climate Impact X also complements DBS’ other efforts to help corporate decarbonise and achieve their sustainability ambitions. For example, as part of DBS’ efforts to partner clients from key industries to transition to a low-carbon economy, DBS is the first bank in the world to publish a Sustainable and Transition Finance Framework and Taxonomy, which serves as a reference to guide corporates to adapt and build resilience in the face of climate change, resource scarcity and address critical global issues such as social inequality.

Who can participate in Climate Impact X?

Corporates that pass all necessary due diligence checks will be eligible to participate in CIX. 

At this stage, CIX is not available to retail customers. However, we may explore broadening participation at a later stage. 

For more information, please visit www.climateimpactx.com.

Glossary

Carbon Credits

A carbon credit is a verified emission reduction (measured in tonnes of CO2 or the equivalent amount of a different greenhouse gas) from certified climate action projects, used to compensate for emissions made elsewhere. These projects reduce, remove or avoid greenhouse gas emissions via methods including nature-based solutions and renewables.

Offsetting with quality carbon credits is a final step in the journey of reducing emissions when other ways to decarbonise have been explored. This is particularly important for companies in hard-to-abate industries, such as shipping, real estate, and steel. When done right, carbon credits provide a robust, immediate and measurable way for businesses to address their unavoidable remaining emissions.

Carbon Exchange

A carbon exchange is a digital platform that enables buyers and suppliers to trade large volumes of high-quality credits across a number of standardised contracts. Carbon exchanges typically cater to large-scale buyers, such as MNCs, and provides involved parties with consistent price indexes.

Gigatonne of Carbon Dioxide (or GtCO2)

A unit of carbon credit.