Singapore Unveils Suite of Measures to Advance High-Integrity Carbon Markets

New initiatives include guidance for corporates, industry-led buyers’ coalition, and grant to boost financial sector participation

SINGAPORE, November 11, 2025 — The Singapore Government announced on October 28, a comprehensive set of initiatives designed to strengthen the country’s position as a hub for high-integrity carbon markets, a critical enabler of global net-zero ambitions. The measures — launched jointly by the National Climate Change Secretariat (NCCS), Ministry of Trade and Industry (MTI), Enterprise Singapore (EnterpriseSG), and the Monetary Authority of Singapore (MAS) — focus on scaling demand for high-quality carbon credits, enhancing market infrastructure, and building financial sector capabilities.

The initiatives comprise three key components: the publication of Voluntary Carbon Market (VCM) Guidance to help companies credibly integrate carbon credits into their decarbonisation strategies; plans for an industry-led buyers’ coalition to aggregate regional demand for high-quality carbon credits; and the establishment of a Financial Sector Carbon Market Development Grant to support Singapore-based financial institutions in developing carbon market expertise and innovative financing solutions.

Guiding Corporate Use of Carbon Credits

The new VCM guidance, jointly developed by NCCS, MTI and EnterpriseSG in collaboration with the Singapore Sustainable Finance Association (SSFA), industry partners, academics, and international organisations, provides clarity on how companies can incorporate the use of carbon credits as part of credible decarbonisation plans. The guidance aligns with global best practices and reflects feedback from a public consultation conducted between June and July 2025.

Mr Ravi Menon, Ambassador for Climate Action and Senior Adviser at NCCS, said the initiative would boost corporate confidence and ambition: “Carbon markets play an important role in mobilising finance for climate action and supporting the global transition to net zero. 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.”

Enterprise Singapore is also in talks with major regional corporates to launch an industry-led buyers’ coalition. The platform will help align corporate demand and channel capital toward high-integrity projects across Asia and beyond, with further details expected in 2026.

Mr Lee Pak Sing, Assistant Managing Director for Trade and Connectivity at EnterpriseSG, said the framework will strengthen market transparency: “By outlining how to identify high-quality carbon credits, when to use them and how to transparently disclose their use, companies can develop credible decarbonisation strategies and contribute to global climate action.”

Incentivising Financial Institutions to Lead Market Growth

Recognising the financial sector’s critical role in developing carbon markets — from structuring transactions and underwriting insurance to trading carbon credits — MAS has announced a S$15 million Financial Sector Carbon Market Development Grant. The fund, available through 2028, will co-fund manpower and transaction-related costs for financial institutions seeking to participate in carbon markets.

The grant has two key tracks:
– Building Market Capabilities – supporting financial institutions to establish or expand in-house teams for carbon project financing, trading, risk management, and insurance;
– Catalysing Financing Solutions and Platforms – defraying upfront costs for due diligence, verification, structuring, and carbon credit insurance premiums.

Ms 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 grant will enable them to deepen expertise, forge partnerships, and develop solutions, laying the foundations for sustained engagement.”

Strengthening Market Infrastructure and Global Partnerships

The latest measures complement earlier government efforts, including the Carbon Project Development Grant launched at COP29 and Singapore’s participation in the Coalition to Grow Carbon Markets, announced during London Climate Action Week. Together, these initiatives strengthen Singapore’s role in shaping transparent and effective carbon market mechanisms under Article 6 of the Paris Agreement.

With clear guidance, coordinated industry participation, and financial incentives, Singapore aims to catalyse a new phase of regional carbon market development — one that drives climate action while ensuring integrity and accountability.

As Menon concluded, “High-integrity carbon markets not only help mobilise finance for climate mitigation but also promote sustainable development and growth in countries where the projects are situated — creating tangible impact for global climate action.”