by Market Overview:
The Singapore carbon credit market deals in carbon credits which are permits that allow companies and governments to emit one tonne of carbon dioxide or equivalent greenhouse gases. Carbon credits enable sustainable development by incentivizing emission reduction projects that generate credits. These credits can then be traded in the compliance carbon market by companies and nations to meet emissions reduction targets in a cost effective manner. Key industries generating demand include power and energy, manufacturing, transportation etc. Carbon credits provide a financial incentive to reduce emissions through investments in renewable energy, energy efficiency, deforestation avoidance and other climate change mitigation projects.
The Singapore Carbon Credit Market is estimated to be valued at US$ 14.5 Mn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023-2030, as highlighted in a new report published by CoherentMI.
Market Key Trends:
One of the key trends in the Singapore carbon credit market is the increasing focus on sustainability goals and regulations. The Singapore Green Plan 2030 has set a target of net zero emissions by 2050. Major industries in Singapore have also committed to sustainability targets which will drive demand for carbon offsets. For example, Jurong Port Corporation has pledged to be carbon neutral by 2050. Sembcorp Marine too aims for net zero operations by 2050. Growing participation in global initiatives like RE100 and EV100 which commit to 100% renewable energy and electric vehicle fleets will further boost carbon credit demand from large corporates and industries.
Porter’s Analysis:
Threat of new entrants: The Singapore carbon credit market has moderate threat of new entrants due to stringent government policies and certification requirements. The established players enjoy economies of scale.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and transparency in market prices. Large buyers can negotiate better prices.
Bargaining power of suppliers: Carbon credit suppliers have low bargaining power due to presence of many suppliers and certification agencies. Switching costs are low for buyers.
Threat of new substitutes: Threat from new substitutes is low as carbon credits are unique and there are no close substitutes. stringent regulatory policies further reduce threat.
Competitive rivalry: The Singapore carbon credit market witnesses high competition among existing players.
The Singapore Carbon Credit Market Segmentation:
- By Project Type
- Renewable energy
- Energy efficiency
- Waste management
- Forestry and land use
- Household devices
- Fuel switching
- Others
- By Trading Type
- Over the counter
- Exchange Traded
- Merchandise
- Project Based
- Others (futures, options etc)
- By End User
- Corporations
- Governments
- Broker & Exchange
- Project Developers
- Individuals
- Others (NGOs, public sector agencies etc.)
Key Takeaways:
The Singapore Carbon Credit Market Size is expected to witness high growth, exhibiting CAGR of 21% over the forecast period, due to increasing focus on reducing carbon emissions and adoption of renewable energy sources. The market size for 2023 is US$ 14.5 Mn.
Regional Analysis: Among regions, Asia Pacific dominates the Singapore carbon credit market and is expected to grow at fastest pace, owing to presence of large economies like China and India. Singapore being a financial hub also influences growth in the region. North America and Europe are also major markets for carbon credits.
Key Players: Key players operating in the Singapore carbon credit market include Climate Impact X, Carbon Credit Capital, Carbonbay, South Pole, Triple Oxygen. Climate Impact X and Carbon Credit Capital jointly hold over 30% market share. South Pole is a renowned player specializing in project development and advisory.
*Note:
1.Source: CoherentMI, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
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.
