November 21, 2007 (New Values Net) – Singapore Exchange Ltd (SGX) could become the latest in a long line of trading platforms to offer carbon contracts after announcing it is conducting research into creating a range of financial derivatives, including property derivatives, Asian credit derivatives and carbon trading.
The exchange said in a joint press release today that it has signed a memorandum of understanding to collaborate on research with the National University of Singapore.
“Singapore, with its central geographical location and expertise in oil and commodities trading, is well-placed to facilitate carbon trading and to support the region in greenhouse gas mitigation. In collaboration with SGX, NUS researchers who are currently studying carbon trading hope to contribute to the efforts in developing Singapore as a hub for carbon trading,” the release said.
If successful, SGX would join European exchanges EEX, ECX, Climex and Nord Pool, US exchange CCX, Brazilian exchange BM&F and the Asian Carbon Exchange, who all either currently offer, or plan to offer, electronic trade of certified emission reductions from clean development mechanism projects.
Asia is the main supply hub of carbon credits, with around two-thirds of all CERs generated from registered projects expected to come from the region over the next five years, according to data from the UN Framework Convention on Climate Change.
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