Singapore launches initiatives to develop high-integrity carbon markets

The Monetary Authority of Singapore (MAS), National Climate Change Secretariat (NCCS), Ministry of Trade and Industry (MTI) and Enterprise Singapore (EnterpriseSG) announced a set of initiatives to support development of high-integrity carbon markets, including publication of VCM guidance, discussions to form a buyers’ coalition, and a Financial Sector Carbon Market Development Grant.

• Main announcement/action: The government published Voluntary Carbon Market (VCM) guidance (published 28 October 2025) to guide corporate use of carbon credits; MAS will set aside S$15 million from the Financial Sector Development Fund over three years till 2028 to fund the Financial Sector Carbon Market Development Grant; applications open 1 November 2025 (details on MAS website). The VCM guidance incorporated advice from the International Advisory Panel for Carbon Credits (IAPCC) and public consultation run from 20 June to 20 July 2025.

• Background and implementation details: EnterpriseSG is in discussions with leading corporates in Asia to establish an industry-led buyers’ coalition to aggregate demand for high-quality credits, with more details to be shared in 2026; the grant will cover costs for building carbon market capabilities and catalysing innovative financing solutions and platforms (including due diligence, verification and carbon credit insurance premiums). Annexes A–C provide IAPCC membership, consultation feedback, and grant details respectively.