SEOUL, November 20 (AJP) - South Korea’s Korea Chamber of Commerce and Industry (KCCI) has joined forces with Singapore’s non-profit Asia Carbon Institute (ACI) to strengthen the voluntary carbon market (VCM) in Asia, a region responsible for approximately 60% of global carbon emissions.
The VCM is a market where entities not subject to mandatory emissions reduction targets, such as companies, local governments, and individuals, can voluntarily participate in carbon reduction projects and trade the resulting carbon credits. This market operates independently of government-led emissions trading systems.
The partnership was signed on Wednesday during the United Nations climate conference COP29 in Baku, Azerbaijan, according to KCCI.
Through this agreement, both entities will collaborate on activating the voluntary carbon market in the Asian region and developing training programs for specialized personnel. They also plan to share information related to the carbon market and organize international conferences.
Singapore is emerging as a central hub for the Asian carbon market, allowing businesses to offset 5 percent of their carbon tax through voluntary reductions. In 2023, the country opened Climate Impact X (CIX), a global voluntary carbon marketplace and exchange.
In July, Singapore accelerated market activation by launching the Singapore Carbon Market Alliance in collaboration with the International Emissions Trading Association. This alliance is building a platform that connects carbon credit purchasing companies with international reduction project developers and suppliers, supporting the market's expansion.
ACI is working with various Asian countries, including Thailand, Malaysia, Indonesia, and Mongolia. The institute also has a branch in Hong Kong.
reporter
Kim Joo-heon
jhkim123@ajunews.com
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