Remarks by Singapore's Ambassador for Climate Action at Launch of Coalition to Grow Carbon Markets

A Government Coalition to Grow Carbon Markets

Why are we here?

• We are about 1.5 trillion US dollars short of what is required each year to meet the goals of the Paris Agreement.

• Carbon markets are a powerful lever to help narrow this funding gap at the pace and scale needed.

• When businesses buy carbon credits to meet their climate targets, they are helping to enable decarbonisation elsewhere that would otherwise not have taken place.

But the carbon markets are facing a crisis of confidence.

• On the supply side, we have seen instances of poor environmental integrity, where the carbon abatement is not real or additional.

• On the demand side, there is uncertainty on the part of businesses.  There is no consensus on when businesses can use carbon credits to meet their climate targets.

These are not reasons to walk away from carbon markets. 

• Rather, they are reasons to work towards better, stronger, and more transparent markets. It is not the tool that is at fault but the manner in which it has been used. 

• There are demand, supply, and market infrastructure issues that we need to address.

This is why Kenya, Singapore, and the United Kingdom have come together to establish a government-led coalition to grow the carbon markets.

• We have been reaching out to several countries in the last few weeks.

• France and Panama have already committed to join the Coalition. Several others have expressed support and are considering joining.

• By COP30, we expect to have a good-sized Coalition, comprising countries which are sources of high-integrity carbon credits as well as countries which are sources of demand.

• The Coalition will collaborate with industry, standard setters, and international organisations, to ensure our work is relevant and credible.

We will establish by COP30 a set of shared principles on the corporate use of carbon credits.

• We are not doing this in isolation but rather in response to industry feedback.

• Businesses are telling us they need sovereign voices to provide them the confidence to use carbon credits while maximising their decarbonisation efforts.

The intent of the shared principles is to ensure consistency but not uniformity.

• Individual countries may choose to issue more detailed guidance to suit their national circumstances but taking care to ensure alignment internationally.

• The United Kingdom has issued draft guidance for its companies on the voluntary use of carbon credits.  

• Just last week, Singapore published its own draft guidance for public consultation.

• We look forward to more countries stepping up to provide guidance to their businesses on the responsible use of carbon credits.

And lest we forget, this is not just about providing clarity for businesses.

• It is also about creating sustainable development benefits and opportunities for countries that are sources of carbon credits, especially in the Global South.

• It is also about creating a vibrant carbon services industry, providing new sources of growth and jobs.

• Most of all, it is about helping to unlock the financing necessary to reduce carbon emissions and safeguard our planet.

Carbon markets can be a powerful force for good.  We want to work with you to make them so.

Thank you.