Singapore-based CIX clears 12,000 tonnes of carbon credits on first trading day

Singapore-based Carbon exchange Climate Impact X (CIX) cleared seven transactions totalling 12,000 tonnes of carbon credits on the first day of trading on its spot trading platform, CIX said on Thursday.

CIX, a joint venture between banks DBS and Standard Chartered, Singapore Exchange (SGX Group) and Singapore state investor Temasek Holdings, also published its first price assessment, benchmarking nature-based avoidance credits issued between 2019 and 2022 at $5.36 per tonne.

Bids and offers on its spot trading platform called CIX Exchange had "converged to just a few cents," by close of trading on June 7, and cleared on the nature-based standardised (NBS) contract it had announced in March, CIX said.

NBS credits can be generated through schemes such as planting trees or protecting forests that could be destroyed to make way for development projects if no financial incentive is given to preserve them.

Many polluting companies seek to use carbon offsets including NBS credits to compensate for pollution from their operations. Critics say offsets allow greenhouse gas emitters to continue polluting and don't materially contribute to reducing emissions.

The first trades were executed by Chevron, CICC Commodity Trading, Engie Energy Marketing and Standard Chartered. Other participants included Carbon Growth Partners, DBS Bank, Hana Securities, RWE Supply & Trading, South Pole, Viridios Capital and Vitol, CIX said.

Each credit represents one tonne of reduced or avoided carbon dioxide from the verified projects. Projects eligible for CIX's NBS contract include Kasigau Corridor REDD Project in Kenya, Rimba Raya Biodiversity Reserve Project in Indonesia and the Cordillera Azul National Park REDD Project in Peru.