Climate Impact X launches procurement platform for Singapore carbon tax-eligible international credits

CIX’s new platform is designed for companies that must pay Singapore’s carbon tax and want to use eligible international credits to reduce their liability. CIX is a Singapore-based exchange for carbon credits and environmental commodities.

Under the ICC framework, carbon tax-liable companies can use eligible international credits to offset up to 5% of their taxable emissions. Eligibility depends on the Implementation Agreements Singapore has signed with host countries. Each agreement sets out which crediting programmes and methodologies qualify, as agreed by Singapore and the host. Credits must carry host-country authorisation and corresponding adjustments. Singapore has signed Implementation Agreements with 12 countries, including Papua New Guinea, Ghana, Bhutan, Peru, Chile, Rwanda, Paraguay, Thailand, Vietnam, Mongolia and Laos.

The eligible supply pool is expanding. Singapore recently approved Verra’s VM0010 improved forest management methodology, alongside the VM0048 REDD+ and VM0047 afforestation methodologies already eligible. Separately, the government is buying credits for its own climate targets: its current tender for at least 12 million ITMOs attracted 22 bids from traders, developers and specialist climate companies.

Signals to watch

• Compliance demand gets a dedicated marketplace: A platform built around ICC eligibility rules lowers search and due diligence costs for corporate buyers. This could increase use of the 5% allowance, which has been limited so far by scarce eligible supply and complex eligibility checks.
• Price transparency for authorised credits: Exchange-based procurement could provide clearer price signals for ICC-eligible, correspondingly adjusted credits, separate from the wider voluntary market. This would help benchmark prices across Singapore’s government tenders and corporate demand.
• Eligibility rules vary by agreement: Because eligible methodologies differ for each host-country agreement, the platform’s value depends on how well it handles these differences and verifies authorisation status. Buyers should confirm that listed credits meet the specific requirements for the relevant host country.
• Supply bottleneck remains upstream: Credits are only ICC-eligible once host governments issue authorisations and apply corresponding adjustments. Developers in partner countries with efficient authorisation processes are best placed to sell through the platform.
• Template for other compliance channels: Similar platforms could emerge for CORSIA, Japan’s GX-ETS and future EU demand. Exchanges that combine eligibility screening, registry links and settlement could become key infrastructure as compliance demand for Article 6 credits grows.

Sources:

• Verra – IFM methodology now eligible under Singapore’s ICC Framework
• Argus – Singapore releases list of approved carbon credits
• CarbonCredits.com – Singapore targets 12 million carbon credits in major Article 6 tender