by The Singapore carbon credit market comprises carbon credits that are generated and traded to meet emission reduction targets and goals set by the government. Carbon credits are certificates that represent the reduction or removal of one ton of carbon dioxide or its equivalent greenhouse gases from the atmosphere. They act as financial assets with a tangible environmental benefit.
The Singapore Carbon Credit government aims to reduce emissions intensity by 36% from 2005 levels and stabilize emissions with the aim of peaking around 2031. It has implemented various emission trading schemes and regulations to incentivize companies to cut emissions and invest in clean technologies. The offsets generated can be traded in the voluntary as well as compliance carbon markets.
Singapore carbon credit market is estimated to be valued at US$ 14.5 Mn in 2024 and is expected to exhibit a CAGR of 21% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the Singapore carbon credit market are Climate Impact X, Carbon Credit Capital, Carbonbay, South Pole, Triple Oxygen. These players are focusing on expanding their project portfolios to include more nature-based solutions for carbon removal as well as increasing their presence in Asia Pacific region through acquisitions and partnerships.
Some of the key opportunities in the market include increasing collaboration between private and public sectors to finance more emission reduction projects. Adoption of carbon removal technologies also presents new revenue streams for market players.
Globally, the market is witnessing strong growth in Europe and North America due to stringent climate policies. However, the Asia Pacific region is emerging as a major market for voluntary carbon credits due to climate initiatives in countries like China, Japan and India. Singapore’s role as a carbon trading hub is expected to boost regional market growth over the next decade.
Market Drivers
The major driver boosting growth of the Singapore carbon credit market is the increasing emphasis on reducing carbon footprint of industries, corporate entities and governments. Various regulations and mandates to tackle climate change have increased the demand for credible carbon offsets. Introduction of carbon tax and carbon trading schemes by the Singapore government also incentivizes companies to invest in carbon credits for compliance purposes. This is expected to significantly drive the revenues in the market over the forecast period.
PEST Analysis
Political: The strict environmental policies in Singapore drive the growth of carbon credit trading market in the country. The Singapore government has set ambitious greenhouse gas emission reduction targets to combat climate change which creates opportunities in the carbon credit sector.
Economic: Singapore has a economically stable country with a growing economy. The high GDP growth rate positively impacts the expenditures on carbon credits by companies to meet their emission standards.
Social: There is increasing awareness among public and organisations about impact of climate change on environment. More companies feel social responsibility to reduce carbon footprint which boosts demand for carbon credits.
Technological: Blockchain technology applications are being adopted in carbon credit trading which improves transparency and reduces risks of double counting. Electronic trading platforms have made carbon credit transactions more efficient.
Singapore carbon credit market is concentrated in Southeast Asia region in terms of value. Being financial hub of Asia, Singapore attracts global capital for trading of voluntary carbon credits generated from emission reduction projects across Southeast Asian countries like Indonesia, Vietnam and Philippines. Singapore’s strategic location and business friendly policies give it advantage over other countries in the region to dominate the carbon credit exchanges.
China is the fastest growing region for Singapore carbon credit market. With stringent climate change targets, number of compliance carbon market initiatives and cap-and-trade programs, there is surge in demand for carbon offsets from China. The growing bilateral trade relations boost opportunities for Singapore players to collaborate with local counterpart in China and tap into the huge emissions trading potentials.
What Are The Key Data Covered In This Singapore Carbon Credit Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the Singapore Carbon Credit’s growth between 2024 and 2031.
:- Accurate calculation of the size of the Singapore Carbon Credit and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- Singapore Carbon Credit Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of Singapore Carbon Credit vendors
FAQ’s
Q.1 What are the main factors influencing the Singapore Carbon Credit?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top Singapore Carbon Credit companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the Singapore Carbon Credit’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
