The Singapore government is taking another step to position itself as a carbon markets hub, this time partnering with the World Bank Group to launch a carbon markets program, according to an announcement.
The initiative, dubbed Singapore Carbon Markets Program, aims to help countries build the technical systems, institutions, digital tools needed to participate in high-integrity carbon markets.
In a statement, the Singapore government said the carbon markets program forms part of the World Bank Group’s strategic partnership with the city-state. It was launched at the Innovate4Climate conference in Singapore.
The initiative will focus on three areas: strengthening carbon market infrastructure and technology, helping countries monetise carbon credits, and supporting host countries in building policies, institutions and market readiness.
It will develop toolkits for interoperable carbon registries aligned with international standards, while supporting digital monitoring, reporting and verification systems for new types of credits, including those linked to regenerative agriculture.
The programme will also test ways to aggregate demand and supply for carbon credits at both buyer and country level, a move intended to lower transaction costs, attract buyers and reduce project risks in underserved markets.
The launch comes as voluntary carbon markets continue to face scrutiny over credit quality, transparency and double-counting risks.
For developing countries, the issue is not only demand for credits but whether they have the registries, policy frameworks and verification systems needed to sell them credibly.
Singapore has been trying to build itself into a regional carbon services and trading centre.
It introduced a carbon tax in 2019, has signed carbon credit purchase agreements with several host countries, and has supported the growth of carbon market exchanges and service providers.
“Carbon markets can become a source of climate finance for developing countries, but only if countries have the infrastructure, market confidence, and technical capacity to participate with integrity,” said Jamie Fergusson, director for climate at the World Bank Group.
Benedict Chia, director-general for climate change at Singapore’s National Climate Change Secretariat, said the programme aims to strengthen confidence in global carbon markets and help host countries participate more meaningfully.
