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Climate Impact X introduces nature-based carbon credit trading

Climate Impact X (CIX), headquartered in Singapore, has unveiled a new series of spot contracts designed specifically for nature-based carbon removal credits. This initiative marks a significant development in trading and pricing within the afforestation, reforestation, and revegetation (ARR) sectors, currently the most liquid segments of the carbon market.

Climate Impact X introduces nature-based carbon credit trading_Landscape view of MacRitchie Reservoir nature in Singapore_visual 1Landscape view of MacRitchie Reservoir nature in Singapore. AI generated picture.

The initial offerings on the CIX Exchange include two geographically focused contracts: the CIX ARR X (CAX), encompassing a collection of 12 global ARR projects, and the CIX ARR X – China (CAX-C), featuring projects from China certified by Verra. As of 4 April, these contracts have seen significant activity, with 10,000 tonnes of carbon credits traded and cleared under the CAX contracts.

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The pricing of these credits shows a dynamic market, with the CAX and CAX-C contracts being priced at $13.10 and $4.36 per tonne respectively. These figures emerged amid a total of 21,000 tonnes bid and offered, highlighting a robust trading environment.

CIX's approach aims to address several market challenges such as pricing transparency and liquidity issues. Ellery Sutanto, head of exchange at CIX, emphasised the importance of contract standardisation in enhancing market functionality. By aligning trading within a concentrated weekly 30-minute window and creating targeted geographical contracts, CIX seeks to foster a deeper, more transparent market.

Read more: The voluntary carbon market's journey through 2023 and beyond

This strategic move aligns with global environmental goals, supporting the Intergovernmental Panel on Climate Change's assertion that carbon removals are crucial for limiting temperature increases. With natural solutions like ARR projects at the forefront, CIX's new contracts could play a pivotal role in scaling up investment and participation in the carbon markets.

As carbon markets grow and evolve, the importance of nature-based solutions (NBS) becomes increasingly clear. Driven by a rising demand for carbon credits (carbon units), initiatives such as reforestation play a crucial role. These projects not only help achieve environmental goals but also offer a practical avenue for individuals, organisations, and governments to engage in global carbon reduction efforts. These initiatives are essential for restoring ecosystems, preserving biodiversity, and enhancing community and planetary health.

DGB Group is a leading developer of nature-based carbon projects, poised for significant growth and impact. Through our NBS initiatives, we provide a pathway for individuals, organisations, and investors to access the burgeoning carbon market and the growing demand for high-quality carbon units. We offer services designed to measure, minimise, and compensate for your carbon footprint with verified, premium carbon units.

Discover DGB’s carbon units—making an impact for the planet

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