The Singapore government is collaborating with the World Bank Group on a new Singapore Carbon Markets Program.
The Singapore Carbon Markets Program aims to tackle common problems that hinder the development and scaling up of carbon markets, and to support countries to enhance technical capabilities, institutional capacity and digital infrastructure in building capacity to benefit from high-integrity carbon markets, the duo said in a statement on Wednesday.
Launched at the Innovate4Climate conference held in Singapore, the program is the latest initiative under the World Bank Group’s strategic partnership with Singapore,
The program will have three key components: strengthening carbon market infrastructure and technology; facilitate monetizing of carbon credits; supporting host countries’ capacity building and market readiness.
The program will deliver toolkits to help countries develop interoperable carbon registries that are aligned with international standards and enable digital carbon abatement monitoring, reporting, and verification (MRV) to new credit types, including regenerative agriculture.
The program will also pilot new ways of aggregating carbon credit demand and supply at the buyer-level and country-level to reduce transaction costs, crowd in demand, and de-risk projects for developers in underserved markets.
The program will support the development of national carbon market strategies, policies, and institutions, including through cross-country learning.
The program draws on the World Bank’s deep expertise and longstanding experience in providing technical assistance and financing to countries, and delivering benefits to local communities.
According to the statement, Singapore offers a strong enabling environment for this program, having implemented a carbon tax in 2019, signed carbon credit purchase agreements with several host countries, and embarked on efforts to grow an ecosystem of carbon market players, service providers and exchanges.
Singapore also plays an active international role in promoting robust carbon markets, such as through its co-leadership of the Coalition to Grow Carbon Markets1 with the United Kingdom and Kenya and as a founding partner of CAD Trust2 along with the World Bank Group and the International Emissions Trading Association.
“This partnership reflects our commitment to deliver tangible development outcomes by providing meaningful access to climate finance to the countries that need it most,
“It reinforces our strategic alignment with the government of Singapore to build high-integrity carbon markets,” said Kristina Svensson, East Asia and Pacific Regional Hub Manager, World Bank Group.
Jamie Fergusson, Director for Climate, World Bank Group, said 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.
Benedict Chia, Director-General (Climate Change), National Climate Change Secretariat, said Singapore is committed to advancing high-integrity carbon markets as a key pillar of both global climate action and sustainable development.
“Our collaboration with the World Bank Group on the Singapore Carbon Markets Program reflects this commitment,
“We hope this program will strengthen confidence in the global carbon market and help ensure that host countries can meaningfully participate in and benefit from it,” he added.
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