GREENHOUSE gas emissions is a permanent, global problem that calls for an urgent and collective solution, even in this period of global slowdown, said Senior Minister of State for Trade and Industry S. Iswaran on Wednesday.

Singapore is committed to growing a 'carbon services cluster' and to serve as a regional carbon price centre and trading hub, said Mr Iswaran at the opening ceremony of the two-day Carbon Forum Asia held at Suntec City.

Speaking to reporters later, Mr Iswaran said 'we have to look at the industry from the long term perspective.'

'Mitigating greenhouse gas emissions... is an objective valid even through the economic dowturn,' he said.

'We're talking about an impact over decades and centuries. Of course in the current economic downturn, some will argue this may not be as high priority. This is true to some extent. but if you look at it another way, an economic downturn is the right time to look at these issues, as it is positioning your business, for the next upturn.'

'When next economic upturn comes, this will still be a current issue. Any business that has taken this reality into account will be better positioned.'

Carbon markets are seen as an effective way to mitigate greenhouse gas emissions such as carbon dioxide. Carbon credit projects, regulated by the United Nations under a Clean Development Mechanism set up under the Kyoto Protocol, generates carbon credits.

One credit is one less tonne of carbon dioxide emission produced. The credits are then traded and bought by firms, normally from Europe, which have to comply with reduction targets on greenhouse gas emissions.

The two-day trade fair and global forum, hosted for the second time by Singapore, brings together global companies and policymakers to discuss issues on climate change and carbon trading.