Singapore is advancing its efforts to develop high-integrity carbon markets through a series of initiatives announced by the National Climate Change Secretariat, Ministry of Trade and Industry, Enterprise Singapore, and the Monetary Authority of Singapore. These initiatives include publishing voluntary carbon market guidance, forming an industry-led buyers’ coalition, and introducing a Financial Sector Carbon Market Development Grant.
Carbon markets are essential for the global transition to net zero by directing capital towards climate action. However, their growth has been hindered by weak demand and limited supply of high-integrity projects. To address these challenges, Singapore’s new initiatives aim to catalyse demand for high-quality carbon credits and strengthen market infrastructure.
The voluntary carbon market guidance, developed in consultation with industry partners and international organisations, provides companies with a framework to incorporate carbon credits into their decarbonisation plans. Enterprise Singapore is also in discussions with leading Asian corporates to establish a buyers’ coalition to aggregate demand for high-quality carbon credits.
The Monetary Authority of Singapore will introduce a Financial Sector Carbon Market Development Grant, allocating $11m (S$15m) over three years to support financial institutions in building carbon market capabilities and developing innovative financing solutions. Applications for the grant will open on 1 November 2025.
Ravi Menon, Ambassador for Climate Action, emphasised the importance of carbon markets in mobilising finance for climate action, stating, “Carbon markets play an important role in mobilising finance for climate action and supporting the global transition to net zero.”
These initiatives are expected to enhance Singapore’s role in global climate action and encourage greater corporate climate ambition.
