DBS, SGX, StanChart, Temasek form JV for carbon credits exchange, marketplace

DBS Bank announced that it has banded together with the Singapore Exchange, Standard Chartered, and Temasek to form a joint venture called Climate Impact X (CIX).

Photo credit: Deyoadutrys

CIX aims to be a global exchange and marketplace for high-quality carbon credits by leveraging satellite monitoring, machine learning, and blockchain technology.

“With an initial focus on Natural Climate Solutions, the carbon credits will also create impetus to address another grave risk of biodiversity loss and help serve local communities,” said Mikkel Larsen, the joint venture’s interim CEO. “CIX will build on collective action by global governments, corporates, and individuals to achieve a net-zero economy.”

CIX will launch the exchange and the project marketplace by the end of 2021 to facilitate the sale of large-scale carbon credits through standardized contracts, catering primarily to multinational corporations and institutional investors.

The joint venture will focus on catalyzing the market for nature climate solutions, which involves protecting and restoring the natural ecosystem including forests, wetlands, and mangroves. CIX will feature carbon credits from climate solution projects around the world on its platforms. It is also in talks with global rating agencies to provide independent ratings to these projects.

In addition, CIX will be guided by an advisory council made up of non-governmental organizations, corporations, and project developers. It will also work with international working groups, including the Taskforce on Scaling Voluntary Carbon Markets and the Natural Climate Solutions Alliance, to establish standards for quality and integrity.