Singapore Exchange debuts blockchain-based carbon credit marketplace

The Singapore Exchange (SGX) has launched a blockchain-based marketplace for carbon credits, aiming to increase transparency, liquidity, and efficiency in the trading of environmental assets. The platform allows corporations, investors, and sustainability-focused institutions to buy, sell, and track carbon credits in real time, providing a modern alternative to traditional over-the-counter markets.

The initiative comes as demand for carbon offsets continues to grow worldwide, driven by corporate net-zero commitments and regulatory pressure to reduce greenhouse gas emissions. Companies participating in the marketplace can purchase credits to offset emissions, while investors can trade these assets with confidence in their authenticity and provenance. Blockchain technology underpins the system, recording every transaction on a secure, immutable ledger and ensuring that each credit is unique and cannot be double-counted.

SGX officials highlighted that the platform is designed to address longstanding challenges in the carbon credit market. Traditionally, verification, tracking, and settlement processes were slow and prone to errors, sometimes undermining trust in the market. By using blockchain, participants can verify the origin, quantity, and retirement status of each credit instantly, reducing friction and improving market confidence.

The new marketplace also aims to attract global participants, including multinational corporations and institutional investors. By providing standardized trading infrastructure, SGX hopes to broaden access to carbon markets beyond specialized brokers and niche investors. Increased participation could lead to deeper liquidity, tighter spreads, and more accurate pricing of carbon credits, making the market more efficient and predictable.

Initial trials have focused on voluntary carbon credits generated from renewable energy projects, reforestation, and energy efficiency initiatives. The platform supports real-time settlement and tracking, allowing companies to demonstrate compliance with internal sustainability targets or regulatory obligations. SGX plans to expand the range of eligible credits in future phases, potentially including credits verified under international standards.

Experts see the blockchain approach as a key step toward the digital transformation of environmental markets. With a transparent, auditable record of every transaction, participants can reduce the risk of fraud or double-counting, which has been a concern in traditional carbon markets. Real-time reporting also enables regulators and auditors to monitor trading activity and verify compliance more effectively.

The launch of the SGX carbon credit marketplace reflects a broader trend of combining technology and sustainability goals. Investors increasingly view carbon credits not only as tools for environmental responsibility but also as tradable financial assets that can be integrated into portfolios. Corporations see value in digital systems that streamline offset management and enhance credibility with stakeholders.

While challenges remain, including regulatory alignment across jurisdictions and ensuring high-quality verification of credits, the platform positions SGX as a regional leader in carbon finance. By leveraging blockchain technology, the exchange is providing market participants with a reliable, scalable, and transparent environment for trading carbon assets, contributing to both financial innovation and climate action.