Singapore has launched a multi-agency effort to strengthen high-integrity carbon markets, seen as vital to funding global climate action.
Led by the National Climate Change Secretariat (NCCS), Ministry of Trade and Industry (MTI), Enterprise Singapore (EnterpriseSG), and the Monetary Authority of Singapore (MAS), the initiatives address weak demand, limited supply, and underdeveloped infrastructure.
The measures include new voluntary carbon market (VCM) guidance for companies, plans for an industry-led buyers’ coalition in Asia, and a financial sector grant to encourage market participation.
The VCM guidance, released by NCCS, MTI, and EnterpriseSG, helps companies integrate carbon credits into credible decarbonisation plans.
Developed with input from the Singapore Sustainable Finance Association, industry partners, academics, and international organisations, it clarifies how to identify and use high-quality credits.
It also incorporates feedback from the International Advisory Panel for Carbon Credits and a public consultation held earlier this year.
Ravi Menon, Ambassador for Climate Action and Senior Adviser, NCCS, said,
“Carbon markets play an important role in mobilising finance for climate action and supporting the global transition to net zero. At the same time, they support sustainable development and growth in countries where the carbon projects are situated.
Through the VCM guidance, we seek to provide our businesses with greater clarity and assurance to tap on high-quality credits, alongside their own efforts to decarbonise. We hope that this can encourage greater corporate climate ambition, contributing to global climate action.”
EnterpriseSG is in talks with major Asian corporates to form a buyers’ coalition that will align regional demand for verified credits, with details expected in 2026.
MAS will roll out a S$15 million Financial Sector Carbon Market Development Grant to help financial institutions manage the costs and risks of early market participation.
Funded through the Financial Sector Development Fund until 2028, the grant supports team expansion, transaction structuring, due diligence, verification, and insurance costs.
Abigail Ng, Chief Sustainability Officer of MAS, said,
“High-integrity carbon markets are integral to financing the global transition, and financial institutions play a key role in bringing capital, innovation and scale to this space.
The new Financial Sector Carbon Market Development Grant will enable financial institutions to deepen expertise, forge partnerships and develop solutions, laying the foundations for their sustained engagement in the carbon markets.”
Applications open on 1 November 2025. These efforts build on existing initiatives such as the Carbon Project Development Grant launched at COP29 and collaborations under Article 6 and the Coalition to Grow Carbon Markets.
The government said the initiatives aim to catalyse high-integrity carbon markets and deliver measurable impact for global climate action.
Featured image: Edited by Fintech News Singapore, based on image by nmmobile789 via Freepik
