To support the development of high-integrity carbon markets, the National Climate Change Secretariat (“NCCS“), the Ministry of Trade and Industry (“MTI“), Enterprise Singapore (“EnterpriseSG“) and the Monetary Authority of Singapore (“MAS“) are pushing out various initiatives including:
the introduction of a new Financial Sector Carbon Market Development Grant to support financial institutions’ participation in carbon markets;
the publication of voluntary carbon market (“VCM“) guidance on how companies can use carbon credits as part of their decarbonisation plans; and
- ongoing discussions with leading corporates in Asia to set up an industry-led buyers’ coalition to aggregate demand for high-quality carbon credits.
Financial Sector Carbon Market Development Grant
MAS will set aside S$15 million over three years till 2028 to:
build carbon market capabilities by supporting the establishment or expansion of financial institutions teams engaged in carbon-project financing, trading, insurance and related services; and
- support innovative financing solutions and platforms by defraying upfront costs associated with transaction structuring, financing, risk management, and trading of carbon credits, including for due diligence, verification and carbon credit insurance premiums.
Applications for the grant opened on 1 November 2025. Please refer here for more information on eligibility requirements and the application process.
VCM Market Guidance
To help companies credibly use carbon credits, NCCS, MTI, and EnterpriseSG published VCM guidance titled “Guidance on Role of Carbon Credits in Corporate Decarbonisation” (“Guidance“). The Guidance was developed with input from the Singapore Sustainable Finance Association, industry, academics, international organisations, and a public consultation conducted between 20 June and July 2025 (please refer to our July 2025 Legal Update titled “Feedback Sought for Draft Voluntary Carbon Market Guidance by 20 July 2025” for more details). The Guidance is available here.
Buyers’ Coalition
To demonstrate application of the key principles outlined within the Guidance, EnterpriseSG is in discussions with leading corporates in Asia to establish an industry-led buyers’ coalition to align and channel demand towards high-integrity carbon credits in the region and beyond. More details will be shared in 2026.
As an ongoing initiative, small and medium-sized enterprises and mid-sized enterprises developing carbon projects or supporting solutions can tap on our Environmental, Social, and Governance (ESG) legal fee subsidy for environmental or climate related legal advisory, under the Sustainability Legal Catalyst Programme with EnterpriseSG. Terms and conditions apply. You can reach out to us at [email protected].
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