Singapore Carbon Credit Market is Anticipated to Witness High Growth Owing to Increasing Compliance with Carbon Pricing Initiatives

Singapore Carbon Credit Market is Anticipated to Witness High Growth Owing to Increasing Compliance with Carbon Pricing Initiatives

The Singapore carbon credit market comprises carbon offset credits that are generated through climate change mitigation projects worldwide. The credits are used by countries, organizations, and private entities to offset their greenhouse gas emissions and meet their voluntary or legally binding emission reduction targets.

Some of the common carbon credit project categories include renewable energy projects such as solar and wind farms, energy efficiency projects, forestation and reforestation projects, and waste management projects. The rising carbon pricing through carbon taxes and regulations on emitting sectors has increased the demand for compliance-grade carbon credits in the Singapore Carbon Credit market.

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 collectively hold over 60% of the market share owing to their diverse project portfolio and supply chain.

The key opportunities in the Singapore carbon credit market include the upcoming compliance obligations for emitters under the Carbon Pricing Act 2021 and the need for offset credits to meet net-zero goals by organizations across sectors. According to a recent survey, carbon credit demand is estimated to double by 2025 from large corporations pursuing science-based net-zero targets.

Globally, carbon credit registries are expanding operations across new geographies to tap into the compliance and voluntary carbon markets. For instance, South Pole, a leading carbon credit supplier, launched new offices in Korea, Japan, and Brazil in 2022 to cater to the growing needs of emitters and buyers in Asia Pacific and Latin America.

Market Drivers

The main driver for the Singapore carbon credit market is the introduction of the Carbon Pricing Act in 2021 that puts a price on emissions from industrial facilities, power generators, and commercial and residential buildings. This compliance obligation creates a definite demand source for carbon credits helping mitigate the additional costs of carbon pricing.

Market Restraints 

One of the key restraints for the Singapore carbon credit market is the lack of awareness about carbon credits and their role in decarbonization strategies among small and medium emitters. Educating and building capacity among this segment about the eligibility and processes involved in using credits can help realize their full emission reduction potential through offsetting.

Segment Analysis 

The Singapore carbon credit market is segmented into compliance credits and voluntary credits. Compliance credits, trading in regulated carbon markets, dominate the market and account for over 70% of the total trade currently. This is because the Singapore credits market is largely compliance-driven with rules and regulations in place for large emitters to purchase credits to offset their emissions. Voluntary credits make up the remaining market but are growing faster as more corporates look to voluntarily reduce their carbon footprint and invest in overseas carbon reduction projects.

Global Analysis 

The Asia Pacific region is the fastest growing as well as the dominating region in the Singapore carbon credit market currently. Within the region, Singapore leads being a major trading hub for carbon credits with its established infrastructure and framework. China, Japan and South Korea follow with significant trading activity and emissions reduction targets driving demand for credits. In terms of growth, Southeast Asian countries like Thailand, Malaysia and Indonesia show high potential as their economies industrialize. Europe and North America dominate historically but the market is shifting to Asia Pacific backed by its economic expansion and climate change initiatives by China, South Korea and other nations.

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?

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Author Bio:

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. (https://www.linkedin.com/in/money-singh-590844163)