The Singapore government on Tuesday rolled out a comprehensive set of measures aimed at bolstering the integrity of carbon markets in the city-state and across the region, including a $11.6 million (S$15 million) grant for financial sector entities.
Led by the National Climate Change Secretariat (NCCS), along with the Monetary Authority of Singapore (MAS), the Ministry of Trade and Industry (MTI) and Enterprise Singapore (EnterpriseSG), the program also includes newly issued guidance for voluntary carbon market (VCM) participants.
The VCM guidance, developed with input from industry groups and international advisors, is designed to help companies evaluate and integrate high-quality carbon credits into their decarbonization strategies.
It comes after extensive public consultation and collaboration with the Singapore Sustainable Finance Association (SSFA).
MAS’s Financial Sector Carbon Market Development Grant will be available through the Financial Sector Development Fund until 2028.
It will help financial institutions expand teams involved in carbon-project financing and trading, and offset upfront costs tied to structuring, verification, risk management and insurance of carbon credit transactions.
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According to Ravi Menon of the NCCS, the new guidance is intended to give businesses clearer direction and confidence to use high-quality carbon credits as part of their broader decarbonization strategies.
“We hope that this can encourage greater corporate climate ambition, contributing to global climate action,” he said.
EnterpriseSG is also working with major Asian corporations to form a buyers’ coalition, expected in 2026, that will help align corporate demand for verified credits across the region.
The government said the combined measures aim to stimulate both supply and demand for high-integrity carbon credit transactions, and to reinforce Singapore’s position as a hub for sustainable finance innovation.
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