DBS China has signed a memorandum of understanding (MOU) with Climate Impact X (CIX) and China-Singapore Suzhou Industrial Park Green Development Company (CSSGD), a subsidiary of China-Singapore Suzhou Industrial Park Development Group (CSSD), to advance carbon credit trading in China and beyond.
The MOU establishes a framework to explore and assess the demand for carbon credit or renewable energy certificate (REC) trading in Suzhou Industrial Park (SIP), the first government-to-government project between Singapore and China.
Launched in 1994, SIP houses a diverse range of companies from around the world, including Chinese enterprises as well as those from Singapore, the US and Europe.
According to an Aug 12 announcement, CSSGD will lead local engagement and market research among enterprises, while CIX will contribute technical insights. DBS will act as a green finance advisor to both parties, providing strategic guidance and sustainable financial solutions.
This demand assessment will pave the way for the parties to co-develop a pilot programme tailored to the needs of SIP companies seeking access to global carbon credit markets.
Han Kwee Juan, group head of institutional banking group at DBS, says: “This partnership combines DBS’s Asian network and deep institutional banking expertise with CIX’s technical leadership in carbon markets and Suzhou Industrial Park’s strong sustainable ecosystem. Together, we are well-positioned to develop scalable carbon solutions that connect domestic sustainability goals with global carbon standards, supporting our clients’ sustainability transformation."
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CIX, co-founded by DBS Group Holdings, Singapore Exchange, Temasek and other Singapore institutions, is a global environmental markets exchange.
Choo Oi-Yee, CEO of CIX, says: “There is significant demand in the Chinese market for carbon asset and carbon credit-related services. From policy guidance to corporate action, there is an urgent need for deeper collaboration across all levels. We look forward to working collectively to help bridge domestic and international efforts, fostering mutual recognition of standards and broadening the scope of our cooperation in the future.”
Xiao Jianzhong, vice-president of CSSD and chairman of CSSGD, says: “Suzhou Industrial Park has a highly developed outward-oriented economy, offering broad market demand for international carbon asset trading, carbon credit development, RECs and related services. Through this collaboration, we aim to further enhance CSSGD’s green service system and capabilities, adding new value to China-Singapore cooperation in green development.”
