by Carbon credits, also known as carbon offsets, represent the removal or reduction of one metric ton of carbon dioxide from the atmosphere. They serve as tradeable permits in emissions trading schemes designed to combat climate change. Singapore employs a cap-and-trade approach through the Carbon Pricing Act, which came into effect in 2019. The Act places an obligation on large emitters to report as well as pay for their greenhouse gas emissions. Emitters can meet compliance targets by purchasing carbon credits from approved international offset projects.
Singapore Carbon Credit Market is estimated to be valued at US$14.5 million in 2024 and is expected to exhibit a CAGR of 21% over the forecast period 2024-2031.
With a growing international focus on reducing carbon footprints, many large corporations are actively sourcing carbon credits to become carbon neutral. At the same time, countries are implementing regulatory frameworks around carbon pricing to transition towards sustainable economies.
Key Takeaways
Key players operating in the Singapore carbon credit market are Climate Impact X, Carbon Credit Capital, Carbonbay, South Pole, Triple Oxygen. These firms facilitate the issuance, trading and retirement of carbon offsets on behalf of governments and private entities.
There is increasing demand for Singapore Carbon Credit firms aiming to meet compliance obligations under the Carbon Pricing Act. Heavy emitters across industries like oil & gas, petrochemicals, and aviation are the leading buyers. Growing sustainability commitments are also prompting businesses to voluntarily purchase offsets.
The Singapore government is promoting the country as a carbon trading and financing hub for Southeast Asia. This is expected to facilitate the global expansion of regional carbon credit providers. International traders and investors are showing greater interest in the Asian carbon market due to its growth prospects.
Market Key Trends
Forestry-related carbon credits are gaining traction in the Singapore market. Reforestation and avoided deforestation projects generate offsets by sequestering and storing carbon in biomass. They make up a significant share of the supply due to the large certified areas available across Southeast Asia, Africa and Latin America. However, ensuring permanence of offsets remains a key challenge for forestry credits over long compliance timeframes.
Porter’s Analysis
Threat Of New Entrants: Low barriers in regulation but concentrated buyers make market entry difficult.
Bargaining Power Of Buyers: Large scale compliance buyers have significant influence in price negotiation.
Bargaining Power Of Suppliers: Few credible project developers and verification bodies enables suppliers to impact price dynamics.
Threat Of New Substitutes: Alternate technologies and solutions like afforestation pose threats but carbon remains core for many compliance regulations.
Competitive Rivalry: Presence of compliance and voluntary segments alongside multiple project types and verification standards leads to competition.
Geographical Regions
The Asia Pacific region accounts for the largest share of the Singapore carbon credit market in terms of value, with countries like China, India and South Korea being major compliance markets and buyers. The Southeast Asian region which includes Indonesia, Thailand and Vietnam is the fastest growing geographical segment supported by Southeast Asia’s carbon offset demand from various compliance regimes and voluntary standards.
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, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
