Government rolls out initiatives for carbon market development

These include a $15m carbon project development grant.

Various government agencies have rolled out initiatives set to support the development of carbon markets in Singapore, including a voluntary carbon market (VCM) guidance, discussions amongst Asian businesses, and the $15m carbon market development grant.

The National Climate Change Secretariat (NCCS), Ministry of Trade and Industry (MTI), Enterprise Singapore (EnterpriseSG), and Monetary Authority of Singapore (MAS) implemented these initiatives for carbon markets, intended as tools to achieve net zero.

The VCM, jointly published by NCCS, MTI, and EnterpriseSG, guides companies in using carbon credits in their decarbonisation plan. There are ongoing discussions amongst Asian businesses for an industry-led buyers’ coalition to aggregate demand for carbon credits, the agencies said.

In the Carbon Project Development Grant, MAS will set aside $15m over three years until 2028 to support carbon-project financing and to defray upfront costs associated with the transaction and trading of carbon credits.

Applications for the grant will open on 1 November 2025.