Singapore’s Ministry of Sustainability and the Environment has recently released important information regarding the eligibility criteria for carbon credits under the International Carbon Credit (ICC) Framework. This framework provides local companies with the opportunity to offset their emissions, which are subject to Singapore’s carbon tax regime. The aim of this release is to ensure transparency and clarity in the process of using carbon credits to reduce environmental impact.
The ICC Framework was introduced in 2020 as part of Singapore’s commitment to combat climate change and reduce greenhouse gas emissions. It allows companies to purchase carbon credits from projects that have been certified by recognized international standards, such as the Verified Carbon Standard or the Gold Standard. These projects can be located anywhere in the world, as long as they meet the eligibility criteria outlined in the framework.
According to the Ministry’s release, companies seeking to use carbon credits to offset their emissions must meet certain requirements. Firstly, the credits must be generated from projects that promote sustainable development and contribute to the reduction of greenhouse gas emissions. This ensures that the credits have a positive environmental impact and align with Singapore’s sustainability goals.
In addition, the projects must have clear additionality, meaning that the emissions reductions achieved would not have happened without the project’s implementation. This requirement ensures that the carbon credits represent a genuine reduction in emissions and are not simply a result of business as usual activities.
Furthermore, the projects must be certified by recognized international standards. This certification process involves rigorous assessment and verification to ensure that the emissions reductions claimed by the projects are accurate and reliable. By only accepting credits from certified projects, Singapore aims to maintain the integrity of its carbon offsetting system.
The Ministry’s release also emphasizes the importance of transparency and accountability in the use of carbon credits. Companies are required to provide detailed information on the projects from which they are purchasing credits, including the project’s location, type, and the number of credits purchased. This information will be subject to independent verification to ensure accuracy and prevent any potential misuse of the system.
Singapore’s carbon tax regime, which was implemented in 2019, requires companies to pay a tax on their greenhouse gas emissions. The use of carbon credits provides companies with a cost-effective way to offset their emissions and comply with the tax requirements. By allowing local companies to participate in the ICC Framework, Singapore aims to encourage sustainable practices and support the transition to a low-carbon economy.
The Ministry’s release is a significant step towards providing clarity and guidance to local companies interested in using carbon credits. It ensures that the process of offsetting emissions through the ICC Framework is transparent, accountable, and aligned with Singapore’s sustainability goals. By setting clear eligibility criteria, the Ministry aims to promote the use of high-quality carbon credits that deliver real environmental benefits.
