Singapore, the United Kingdom (UK), and Kenya have formed a new government-led coalition to support the growth of voluntary carbon markets and establish unified guidance for businesses using carbon credits.
Announced during London Climate Action Week, the Coalition to Grow Carbon Markets aims to develop a common set of principles to ensure consistent carbon credit use across borders.
These guidelines are expected to be finalized ahead of the COP30 climate summit in Brazil this November.
The move comes in response to growing demand from the private sector for clearer government direction on incorporating carbon credits into decarbonization strategies.
According to a joint statement, the shared principles are intended to build trust, encourage investment, and unlock the potential of carbon markets as a climate finance tool.
The coalition is co-chaired by Singapore’s Climate Ambassador Ravi Menon, Kenya’s Special Climate Envoy Ali Mohamed, and the UK’s Climate Representative Rachel Kyte, and plans to work closely with businesses to shape supportive policy and incentives.
Read more: Singapore Signs Seventh Bilateral Carbon Credit Agreement With Paraguay
“To help unlock private sector finance at the scale and pace needed to support global climate ambitions, we must energise the carbon markets. This Coalition will help foster investor and stakeholder confidence, and strengthen the integrity and interoperability of these markets while delivering real emissions reductions,” said Grace Fu, Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations, Singapore.
Kerry McCarthy MP, Minister for Climate, UK Government, stated: “The UK is championing the responsible use of carbon credits by taking action to spearhead global efforts to raise integrity, supporting UK businesses to grow these markets and delivering growth through the Plan for Change.”
“Through this new Coalition, we’re giving businesses the clarity they need to invest in high-integrity credits that drive real impact for climate and nature, unlocking carbon markets as a trusted tool in accelerating towards net zero.”
The Integrity Council for the Voluntary Carbon Market (ICVCM), an independent body responsible for setting quality standards for carbon credits, is collaborating with the coalition to help bridge the gap between credit buyers and suppliers.
Read more: Singapore Signs Carbon Credit Deal With Rwanda, Sixth Since 2023
