Singapore has launched a multi-agency effort to strengthen high-integrity carbon markets, seen as very important to funding world local weather motion.
Led by the Nationwide Local weather Change Secretariat (NCCS), Ministry of Commerce and Trade (MTI), Enterprise Singapore (EnterpriseSG), and the Financial Authority of Singapore (MAS), the initiatives tackle weak demand, restricted provide, and underdeveloped infrastructure.
The measures embody new voluntary carbon market (VCM) steerage for firms, plans for an industry-led patrons’ coalition in Asia, and a monetary sector grant to encourage market participation.
The VCM steerage, launched by NCCS, MTI, and EnterpriseSG, helps firms combine carbon credit into credible decarbonisation plans.
Developed with enter from the Singapore Sustainable Finance Affiliation, {industry} companions, teachers, and worldwide organisations, it clarifies the best way to determine and use high-quality credit.
It additionally incorporates suggestions from the Worldwide Advisory Panel for Carbon Credit and a public session held earlier this 12 months.
Ravi Menon, Ambassador for Local weather Motion and Senior Adviser, NCCS, mentioned,
“Carbon markets play an essential position in mobilising finance for local weather motion and supporting the worldwide transition to internet zero. On the similar time, they assist sustainable improvement and progress in international locations the place the carbon initiatives are located.
By means of the VCM steerage, we search to offer our companies with higher readability and assurance to faucet on high-quality credit, alongside their very own efforts to decarbonise. We hope that this will encourage higher company local weather ambition, contributing to world local weather motion.”
EnterpriseSG is in talks with main Asian corporates to kind a patrons’ coalition that can align regional demand for verified credit, with particulars anticipated in 2026.
MAS will roll out a S$15 million Monetary Sector Carbon Market Growth Grant to assist monetary establishments handle the prices and dangers of early market participation.
Funded via the Monetary Sector Growth Fund till 2028, the grant helps workforce growth, transaction structuring, due diligence, verification, and insurance coverage prices.
Abigail Ng, Chief Sustainability Officer of MAS, mentioned,
“Excessive-integrity carbon markets are integral to financing the worldwide transition, and monetary establishments play a key position in bringing capital, innovation and scale to this house.
The brand new Monetary Sector Carbon Market Growth Grant will allow monetary establishments to deepen experience, forge partnerships and develop options, laying the foundations for his or her sustained engagement within the carbon markets.”
Functions open on 1 November 2025. These efforts construct on present initiatives such because the Carbon Challenge Growth Grant launched at COP29 and collaborations below Article 6 and the Coalition to Develop Carbon Markets.
The federal government mentioned the initiatives purpose to catalyse high-integrity carbon markets and ship measurable affect for world local weather motion.
Featured picture: Edited by Fintech Information Singapore, based mostly on picture by nmmobile789 by way of Freepik
