DBS China, part of Singapore’s DBS Group (SGX: D05), has signed a memorandum of understanding (MOU) to advance carbon credit and renewable energy certificate (REC) trading in China, as reported by The Business Times.
The MOU is a tripartite agreement with China-Singapore Suzhou Industrial Park Green Development Company (CSSGD) and Climate Impact X (CIX).
The goal is to assess market demand and co-develop a pilot program for companies within the Suzhou Industrial Park (SIP), a key economic zone launched in 1994 as the first government-to-government project between Singapore and China.
The collaboration is also expected to support future expansion across China and into international markets.
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Under the MOU, CSSGD — a subsidiary of the China-Singapore Suzhou Industrial Park Development Group (CSSD) — will lead local market research and business engagement.
CIX, a global carbon exchange co-founded by DBS Group, Temasek, the Singapore Exchange and others, will provide technical expertise.
DBS will act as the green finance adviser, offering strategic support and sustainable financial solutions.
“The partnership combines DBS’ Asian network and institutional banking expertise with CIX’s technical leadership in carbon markets and SIP’s sustainable ecosystem,” Han Kwee Juan, group head of institutional banking at DBS, was quoted as saying in a comment.
The initiative reflects growing interest in sustainable finance and carbon market development within China.
According to Xiao Jianzhong, vice-president of CSSD and chairman of CSSGD, SIP’s globally connected economy offers “broad market demand for international carbon asset trading.”
The pilot is part of a broader push to align Chinese enterprises with global carbon standards, while enhancing cross-border cooperation in green development between China and Singapore.
If successful, it could serve as a model for similar efforts in other industrial zones and international platforms.
