Jessica Cheam, Straits Times 20 Aug 09;
SINGAPORE'S ambition to become Asia's carbon trading centre will take some time to be realised, even as the nascent industry expands and global momentum gathers to restrict pollution.
The Sustainable Energy Association of Singapore chairman Edwin Khew said yesterday carbon trading here could take till 2011 to kick off in a big way, when the first phase of Singapore's 55ha Cleantech Park is completed.
Carbon trading aims to curb emissions which add to global warming by placing a price on carbon, and allowing emission permits to be traded between firms.
The Cleantech Park will provide companies with a ready testing ground for their technologies, and set standards for users in carbon emissions, energy use, and water and waste management.
'I think the park will be where the industry will revolve,' said Mr Khew, pointing out that Singapore's position as Asia's financial centre will help in fulfilling its carbon trading ambition.
The Republic is home to foreign banks such as Fortis, HSBC and Standard Chartered which provide financing for renewable energy projects. It has also attracted the big boys such as Danish wind power firm Vestas and Norwegian solar giant Renewable Energy Corp, he said.
As global momentum gathers for carbon trading schemes to be set up, such as in the United States and Australia, trading activity will also spike and Singapore is well poised to tap on this, said chief executive Henry Derwent of the International Emissions Trading Association (IETA).
New exchanges such as the Singapore Mercantile Exchange - a commodities futures exchange that will be operational by the end of the year - could see some carbon trading activity when this happens, said Mr Khew.
Both men were speaking at an event that was a curtain-raiser for the two-day Carbon Forum Asia in October, organised by IETA and German firm Koelnmesse.
The carbon market doubled from US$63 billion (S$91 billion) in 2007 to US$126 billion last year, according to the latest World Bank data.
Asia still commands the lion's share - 92 per cent - of carbon credit projects, said Mr Derwent.
The speed of its development will depend on negotiations in Copenhagen in December, when a global deal is set to be brokered.
These talks and the future of the carbon industry will top the agenda at the upcoming conference, which brings together policymakers and businesses from 24 countries in the region.
For the first time, it will be held in conjunction with the United Nations Framework Convention on Climate Change DNA Forum, which brings together regulators from countries that are allowed to generate carbon credits for trading.
Also known as Designated National Authorities (DNA), these governmental representatives regulate the carbon credit projects in their home countries on behalf of the UN.
