Straits Times 31 Jul 08;
THE race is on as Singapore and Hong Kong battle to be Asia's carbon-trading hub.
Singapore was positioned well, given its close involvement with energy trading and substantial financial markets expertise, said Mr Henry Derwent, the president of the International Emissions Trading Association.
'I think there is huge determination in the Government here to grab hold of this rapidly developing market,' he said.The global carbon market doubled last year to 47 billion euros (S$101 billion).
Asia made up 80 per cent of carbon credits trading.
China made up more than half the total trade, putting Hong Kong in a prime position, said group director of carbon services firm Asia Carbon, Mr Yuvaraj Dinesh Babu.
The Hong Kong Stock Exchange commissioned a full feasibility study on how it can capitalise on the growing market. 'They have gone through the initial learning phase and, in that respect, they're ahead of Singapore in understanding the overall impact of the carbon market,' he said.
But he pointed to the Singapore Mercantile Exchange, which will operate by early next year and allow investors to buy and sell carbon credits for the first time. 'This platform could help Singapore take the lead,' said Mr Dinesh.
Mr Derwent and Mr Dinesh spoke at a press conference ahead of Carbon Forum Asia 2008, to be held here in November.
JESSICA CHEAM
