Singapore’s National Environment Agency (NEA) has signed memorandums of understanding with the American Carbon Registry and the Architecture for Redd Transactions, two international carbon credit organisations, to widen the options available to companies looking to offset their carbon tax bill. NEA has already signed agreements with three other international carbon credit registries: Verra, Gold Standard and Global Carbon Council. Singapore’s carbon tax applies to all facilities producing 25,000 tonnes or more of greenhouse gas emissions in a year, and the government plans to publish a white list of eligible carbon credits that companies can choose from by 2023. NEA establishes these agreements to understand the processes by which international carbon credits are transacted. CORSIA is among the most rigorous carbon-offsetting and reduction schemes in the industry. Launched in 2016, it came into effect in 2021 to lower the aviation sector’s impact on climate change, and aircraft operators that join the programme must purchase eligible carbon credits from the carbon market to offset their emissions. In February 2022, it was announced that businesses subject to Singapore’s carbon tax can, from 2024, buy international carbon credits to offset up to 5% of taxable emissions in lieu of paying the tax.
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It is important that carbon credit schemes also benefit local communities.
The World Meteorological Organisation has stated that 193 countries have given unanimous backing to a scheme to monitor global greenhouse...
