The Carbon
Markets Potential
Mikkel Larsen, Chief Executive Officer, Climate Impact X

Tuesday, 27 February 2024
CONFIDENTIAL • contactus@climateimpactx.com • climateimpactx.com

Two important elements for carbon market evolution
What do we need to move the needle and scale the market so we can achieve broader environmental and economic benefits?

Convergence ofcarbon markets

Connectivity between
economies

CLIMATE IMPACT X|22

What are carbon markets?
The compliance and voluntary markets operate in parallel. We believe they will converge over time. J-Credits are locally sourced

and may not be sufficient to meet Japan’s NDCs.

Compliance markets

Voluntary markets

Corporate participants: Cap-and-trade schemes and/orcarbon taxes put a price on emissions. Companies trade
allocated/auctioned allowances between each other, tofulfill legal obligations. >20% of global GHG emissions
are covered by a mandatory carbon price.

Demand is driven voluntary climate
commitments from 5,000+ companies,
plus investors and some retail customers.

Government participants: Obligations arise throughlegally binding submission of NDCs under the Paris
Agreement (2015), and pursuance of measures toachieve them.
Local
E.g. EU ETS,
China ETS,
California ETS,
RGGIE.g. SG carbon
tax scheme;
Korea ETS;CORSIA

Unregulated but standards and guidance
are developed by independent bodies.

(Example standardsInternational
E.g. Article 6.2
bilateral transfer

CLIMATE IMPACT X|

33

Asia will become a global supply center for carbon credits“Asia is the fastest moving region in the world in terms of launching, planning anddeveloping new systems…
Despite doubling their size since 2020, Asian carbon markets currently cover only 14% ofthe world’s emissions, while the region produces nearly half of the total.”

Studies by NUS have found that most of the financially viable and profitable carbon sites
from forest protection are in Asia. Much of the future tech solutions will also come fromAsia (Methane capture, biochar, new tech).
Sources: International Carbon Action Partnership (2023); National University of Singapore

CLIMATE IMPACT X|44

In Japan, theJCM andVCM are twopathways toprocure
credits

Source: Global Environment Centre Foundation (2024)

JCM

VCM

JOINT CREDITING MECHANISMVOLUNTARY CARBON MARKET✓ JCM is a system that enables
Japan to source credits fromASEAN and other developing
markets for compliance purposes✓ VCM allows Japanese corporates
to reach Net Zero and meet theirbeyond value chain mitigation(BVCM) commitments✓ Japan has signed bilateralagreements with 29 countries (asof Feb 2024)

CLIMATE IMPACT X|5

CIX’s mission is to create real climate
impact by turning trust in carbon
credits into tangible & actionableoutcomes.

CIX Marketplace

CIX Auctions

CIX Exchange

We are uniquely positioned to helpbuyers and suppliers understand theright quality for the right price.
CIX can help Japanese corporates by:✓ Sourcing VCM credits✓ Investing in quality JCM credits
through our partners

Our investors:

TRUST IN
the Product

TRUST IN
Product Use

TRUST IN
Execution

TRUST IN
the Price

CIX COMMUNITY
Connecting buyers, suppliers and key ecosystem enablers

CLIMATE IMPACT X|6

Steps to developing carbon markets and Potential areas
for collaboration

Establish local
carbon markets andregulation

Developing high-quality
JCM credits

Connect local
markets

Develop crossborder standardised
contracts and tradingmechanisms

Collaborate on crossborder NDC-alignedcredit facilities

Create standardised
contracts for ASEAN andJapan credits

Establish ASEAN and Japanregional compliance market

WIN-WIN
CLIMATE IMPACT X|77Disclaimer
The information contained in this presentation is strictly confidential (“Confidential Information”) and is provided by Climate Impact X Pte. Ltd. (the “Company”) to you solely for
general information purposes only. The information in this presentation is being provided to a limited number of persons who may be interested in any potential transaction,
collaboration, and/or partnership involving the Company and/or the subject matter of this presentation (“Subject Matter”). Neither this presentation nor any part thereof may be (i)used or relied upon by any other party for any other purpose; or (ii) copied, duplicated or otherwise reproduced, redistributed or disseminated, directly or indirectly, in any form orby any means whether in Singapore or elsewhere to any other person.
In preparing this presentation, the Company and its Representatives may have relied upon and assumed, without independent verification, the accuracy and completeness of all
information available from public sources and certain confidential information made available to the Company and its Representatives. The Confidential Information is provided asat the date of this presentation and is subject to change without notice, its accuracy is not guaranteed, has not been independently verified and it may not contain all material
information concerning the Subject Matter. The Confidential Information is a summary only and does not purport to be exhaustive or contain all of the information that is relevant tothe Subject Matter. This presentation does not take into account any specific investment or other objectives, financial situation or other particular needs of you or any particularperson. Further, nothing in this presentation should be construed as constituting legal, business, regulatory or any other professional advice. Neither the Company nor any of its
related corporations or any of their respective directors, officers, employees, consultants, advisors, agents or other representatives (collectively, “Representatives”) makes any
representation or warranty, expressed or implied, with respect to the accuracy or completeness of any information contained herein and undertakes any duty to update suchinformation.
The launch of Climate Impact X, and its joint operation by DBS, SGX, Standard Chartered and Temasek, is subject to all required regulatory approvals/consents being obtained. This
presentation and its contents have not been reviewed by any regulatory authority and any definitive transaction, collaboration or other partnership involving the Subject Matter may
be subject to regulatory approval and other conditions. You are entirely responsible for performing your own investigation, due diligence, review and evaluation of the ConfidentialInformation, and in no event shall the Company or any of its Representatives have any liability whatsoever to you in connection with the Confidential Information, your use thereof,or otherwise in connection with this presentation.
The information set out in this presentation is not intended to form the basis of any contract. Nothing contained in this presentation shall compel or oblige you to enter into any
discussions, negotiations or the transaction(s) contemplated by this presentation with the Company and nothing contained herein constitutes an offer or other invitation whatsoever
by or on behalf of the Company. You further acknowledge and accept that the Company reserves the right, in its sole discretion, to suspend, modify or terminate at any time anydiscussions or negotiations with you.
To the maximum extent permitted by all applicable laws, regulations and rules, the Company and its Representatives shall not be liable for any damages or losses (whether direct orindirectly and including any special, incidental, consequential or other losses of any kind), in tort, contract or otherwise (including but not limited to loss of income or profits), arisingout of or in connection with any acceptance of or reliance on this presentation or any part thereof by you.
This disclaimer extends to any statements, opinions or conclusions contained in, or any omissions from, this presentation or in respect of written or oral communications transmitted
or otherwise made available to you.