There will be a new grant scheme for carbon project developers setting up and financing early-stage carbon projects that generate credits which a country can buy to help it meet its climate targets.
To be eligible for the grant, applicants must be established carbon project developers that have had success in developing high-quality carbon projects, said Singapore’s Economic Development Board (EDB) on Tuesday (12 Nov).
These companies will be expected to anchor a project development team in Singapore to carry out the early-stage phases of the projects.
The credits generated from these projects must also meet the eligibility criteria detailed in Singapore’s carbon offsetting mechanism, the International Carbon Credit Framework.
Under this framework, high emitters can purchase eligible credits to offset up to 5 per cent of their taxable emissions.
The projects must also be in countries that have existing carbon credit collaborations with Singapore, and are aligned with Article 6 of the Paris Agreement. Article 6 governs the bilateral and international trading of carbon credits, and credits under this framework come with corresponding adjustments.
This means that the emissions being offset are counted only once by the country that bought the credits; the country that produced them gives up the right to use the credits to meet its own national climate targets.
This is to avoid the double-counting of underlying emissions reductions or removals when carbon credits are traded.
