Singapore’s National Climate Change Secretariat, Ministry of Trade and Industry, Enterprise Singapore and the Monetary Authority of Singapore have set out a package of initiatives aimed at developing high-integrity carbon markets. The package combines new guidance for corporates on using carbon credits within decarbonisation plans, work to form an industry-led buyers’ coalition for high-quality credits, and a MAS grant to lower entry costs for financial institutions participating in carbon markets. The voluntary carbon market guidance sets out principles on identifying high-quality carbon credits, when to use them, and how to transparently disclose their use, and will be regularly reviewed and updated. It was developed with the Singapore Sustainable Finance Association and other stakeholders, drawing on the International Advisory Panel for Carbon Credits and feedback from a 20 June to 20 July 2025 public consultation. Separately, Enterprise Singapore is engaging leading Asian corporates on establishing a buyers’ coalition to align and aggregate demand for high-integrity credits, with further details to be shared in 2026. MAS will set aside SGD 15 million over three years to 2028 from the Financial Sector Development Fund for the Financial Sector Carbon Market Development Grant. Funding will support capability-building (including teams focused on carbon project financing, trading and insurance) and defray upfront costs linked to structuring and executing early transactions, including due diligence, verification and carbon credit insurance premiums. Applications open on 1 November 2025.
Monetary Authority of Singapore 2025-10-28
Monetary Authority of Singapore introduces SGD 15 million Financial Sector Carbon Market Development Grant alongside new voluntary carbon market guidance
The Monetary Authority of Singapore and other national bodies have launched initiatives to develop high-integrity carbon markets, including guidance for corporates on carbon credits and forming a buyers’ coalition. A SGD 15 million grant from the Financial Sector Development Fund will support financial institutions in carbon market participation, focusing on capability-building and reducing entry costs. The guidance, developed with industry stakeholders, will be regularly updated and reviewed.