CIX and Carbonplace plan carbon market
Singapore's Climate Impact X and London's Carbonplace will merge in early 2027 to combine carbon credit trading and settlement infrastructure.
Singapore-based carbon exchange Climate Impact X (CIX) and London's settlement platform Carbonplace plan to merge. The companies announced the move on 26 August, aiming to create a larger trading platform as the voluntary carbon market contends with fragmentation and concerns over credit quality.
The transaction would combine CIX’s carbon-credit procurement, exchange and price-discovery services with Carbonplace’s settlement, custody and portfolio-management infrastructure. This would give customers access to multiple carbon registries through a single platform. The deal is subject to regulatory approvals and is expected to be completed in the first quarter of 2027. Financial terms were not disclosed.
The combined company will be led by CIX Chief Executive Oi-Yee Choo, with Carbonplace CEO Scott Eaton serving as president. Both businesses will continue under their existing brands during integration.
Market context and challenges
A carbon credit typically represents one metric tonne of greenhouse gas emissions avoided or removed. Companies buy and "retire" credits to compensate for some emissions. The voluntary market, where companies purchase credits without a legal obligation, has faced persistent questions. Concerns focus on whether some projects deliver the claimed emissions reductions and if credits are used in place of companies reducing their own emissions.
These concerns have weakened activity. Transaction volumes in the voluntary carbon market fell 25 per cent in 2024 to 84.4 million tonnes of carbon dioxide equivalent, according to a 2025 report by Ecosystem Marketplace. Average prices declined 5.5 per cent. The market had contracted sharply in 2023, with its reported transaction value falling to US$723 million, down from nearly US$2 billion at its 2021 peak.
Efforts are underway to steer buyers towards credits meeting stricter standards. The Integrity Council for the Voluntary Carbon Market has developed its Core Carbon Principles to assess crediting programmes.
CIX and Carbonplace argue better-integrated infrastructure could make transactions easier to trace. It would also reduce the operational complexity of dealing with different registries, products and standards. "Scaling access and liquidity to meet the growing needs of global carbon markets requires robust, trusted infrastructure," CIX’s Choo said.
She noted the platform would need to operate across both voluntary and government-backed schemes. Mechanisms like the Paris Agreement’s Article 6 and the aviation offsetting programme CORSIA are bringing previously separate parts of the market closer together.
Carbonplace’s Eaton said reliable settlement and ownership records were essential for attracting more banks and institutional investors. "A trade is only as good as the infrastructure that completes it," he stated.
Singapore's carbon ambitions
The merger connects London’s institutional financial market with Singapore’s growing carbon services sector. It strengthens the city-state’s effort to establish itself as Asia’s centre for carbon trading and finance.
CIX was established in 2021 by DBS Bank, Singapore Exchange, Standard Chartered and Temasek. Singapore’s carbon tax rose to S$45 (US$35) per tonne in 2026. Taxable facilities can use eligible international credits to offset up to 5 per cent of their taxable emissions, giving credits a limited role within the regulated carbon-pricing system.
The city-state has signed Article 6 agreements with countries including Bhutan, Mongolia, the Philippines, Thailand and Vietnam. Under these, host countries can attract funding for emissions-reduction projects, while Singapore can use some resulting credits towards its climate targets or allow companies to use them against carbon-tax liabilities.
The system remains early stage. Singapore’s official Article 6 project register listed no authorised projects as of 14 August.
The merged company would be backed by 12 banks, investors and market operators. These include Singapore’s DBS, SGX Group and GenZero, as well as Japan’s Mizuho Financial Group and Sumitomo Mitsui Banking Corporation. Other shareholders are BBVA, BNP Paribas, CIBC, National Australia Bank, NatWest Group, Standard Chartered and UBS.
