Yesterday Singapore’s DBS Bank, the Singapore Exchange (SGX), Standard Chartered and Temasek unveiled plans for a joint venture to tackle climate change. Together they are setting up the Climate Impact X (CIX) to trade carbon credits.
One of the challenges with carbon credits is ensuring the underlying projects are valid. A 2019 ProPublica report found that some forests were cut down after receiving offset funding. It gives an example of a forest that started selling credits in 2013 and satellite imagery four years later showed only half the area was still forested.
CIX plans to focus on just this type of project, Natural Climate Solutions (NCS), which aims to conserve or restore natural ecosystems such as forests, wetlands, and mangroves. It will address some of the shortcomings identified by ProPublica with technology such as satellite monitoring, machine learning and blockchain for transparency.
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