Singapore and World Bank Group Launch Carbon Markets Programme to Build High-Integrity Global Infrastructure

Singapore has partnered with the World Bank Group to launch the Singapore Carbon Markets Programme, a new initiative unveiled at the Innovate4Climate conference in Singapore aimed at tackling common problems that hinder the development and scaling of carbon markets. The programme has three core components covering carbon market infrastructure and technology, facilitation of carbon credit monetisation and host country capacity building, each designed to address a distinct layer of the structural barriers preventing developing nations from participating effectively in high-integrity carbon markets. The launch builds on Singapore's established position as a carbon market hub, having implemented a carbon tax in 2019, signed carbon credit purchase agreements with several host countries and co-led the Coalition to Grow Carbon Markets alongside the United Kingdom and Kenya.

 

Strengthening Carbon Market Infrastructure and Technology

 

The first component of the programme will deliver toolkits to help countries develop interoperable carbon registries aligned with international standards, enabling digital carbon abatement monitoring, reporting and verification to be extended to new credit types including regenerative agriculture. Registry interoperability is a foundational requirement for high-integrity cross-border carbon credit transfers, yet many developing nations lack the technical infrastructure to build and maintain systems that meet international standards. By providing standardised toolkits rather than bespoke solutions, the programme aims to reduce the cost and complexity of establishing compliant registry infrastructure across a broad range of country contexts.

Extending digital MRV capabilities to regenerative agriculture is particularly significant given the growing interest in land-use based carbon credits and the complexity of monitoring carbon sequestration in agricultural and forestry settings. Credible digital MRV provides the auditability that international buyers increasingly require before committing to long-term carbon credit offtake agreements. Addressing this technical gap could unlock substantial new credit supply from agricultural nations that currently lack the systems to generate internationally recognised removals credits.

 

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Facilitating Carbon Credit Monetisation

 

The second component will pilot new approaches to aggregating carbon credit demand and supply at both buyer and country level, with the objective of reducing transaction costs, attracting additional demand and de-risking projects for developers operating in underserved markets. High transaction costs relative to credit value have historically made small-scale projects commercially unviable, limiting the geographic and sectoral diversity of carbon credits reaching international markets. Aggregation mechanisms that pool credits from multiple projects or buyers can change this economics fundamentally, making it viable to develop credits in markets that would otherwise be too small or fragmented to attract developer interest.

Jamie Fergusson, Director for Climate at the World Bank Group, said carbon markets can become a meaningful source of climate finance for developing countries but only if those countries have the infrastructure, market confidence and technical capacity to participate with integrity. The demand aggregation approach also addresses the buyer-side challenge, where individual corporate buyers may struggle to source sufficient volume from specific geographies or project types without dedicated aggregation mechanisms. Reducing friction on both the supply and demand sides of the market simultaneously addresses the liquidity problem that has constrained many emerging carbon market segments.

 

Host Country Capacity Building and Market Readiness

 

The third component supports the development of national carbon market strategies, policies and institutional frameworks, including through structured cross-country learning opportunities. Many developing nations have strong natural or industrial resources for emissions reduction but lack the regulatory frameworks, institutional capacity and policy clarity needed to attract credible project developers and international buyers. Without these foundations, even technically viable projects struggle to achieve the bankability and integrity standards required for participation in international compliance and high-quality voluntary markets.

Benedict Chia, Director-General for Climate Change at Singapore's 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. He said the collaboration with the World Bank Group reflects this commitment and expresses the hope that the programme will strengthen confidence in the global carbon market and help ensure that host countries can meaningfully participate in and benefit from it. The cross-country learning component is particularly valuable for nations at similar stages of market development, where peer exchange can accelerate institutional capacity building more efficiently than purely technical assistance.

 

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Singapore's Carbon Market Ecosystem and Strategic Role

 

Singapore offers a strong enabling environment for the programme, having built one of the most sophisticated carbon market ecosystems in Asia since implementing its carbon tax in 2019. The country has signed carbon credit purchase agreements with several host countries, established itself as a founding partner of CAD Trust alongside the World Bank Group and the International Emissions Trading Association, and grown a significant ecosystem of carbon market players, service providers and exchanges. This combination of regulatory experience, bilateral market relationships and institutional ecosystem gives Singapore a credible platform from which to advance multilateral carbon market development.

Kristina Svensson, East Asia and Pacific Regional Hub Manager at the World Bank Group, said the partnership reflects the organisation's commitment to delivering tangible development outcomes by providing meaningful access to climate finance to the countries that need it most. The World Bank Group brings decades of technical assistance and development finance experience across emerging markets, complementing Singapore's carbon market expertise and financial infrastructure. The combination of World Bank global reach and Singapore's specialised carbon market capabilities creates a partnership well positioned to deliver practical programme outcomes.

 

Outlook for Global Carbon Market Integrity

 

The Singapore Carbon Markets Programme reflects a growing recognition that scaling global carbon markets requires coordinated investment in the enabling infrastructure rather than simply increasing credit supply or corporate demand. Without interoperable registries, credible MRV systems, effective aggregation mechanisms and strong institutional capacity in host countries, the integrity concerns that have undermined confidence in parts of the voluntary carbon market will persist. Programmes that address these structural foundations systematically are likely to have a disproportionate impact on the long-term credibility and scalability of international carbon markets.

Whether the Singapore Carbon Markets Programme can deliver measurable improvements in host country participation and credit quality will depend on the pace of toolkit deployment, the effectiveness of the aggregation pilots and the depth of institutional capacity built across target markets. Sustained execution would reinforce both Singapore's and the World Bank Group's positioning as leaders in global carbon market development and provide a replicable model for similar multilateral programmes. The convergence of Article 6 operationalisation, growing corporate demand for high-integrity credits and increasing policy ambition in emerging markets creates a window of opportunity in which well-designed infrastructure programmes can have lasting impact.

 

Source: The National Climate Change Secretariat (NCCS)