The Singapore Economic Development Board (EDB) has introduced a new grant designed to support companies in Singapore involved in early-stage carbon project development and financing, particularly those that aim to generate high-quality carbon credits aligned with Article 6 of the Paris Agreement. The grant, announced to address financing gaps in carbon project development, targets an increase in the supply of high-integrity credits critical to decarbonising hard-to-abate sectors in Singapore.
The EDB’s initiative seeks to tap into Southeast Asia’s vast potential as a source for Article 6-compliant carbon credits, with opportunities ranging from forestry conservation to blue carbon removal projects. Despite global demand, the supply of these high-quality credits remains limited, with early financing often cited as a significant obstacle for project developers.
In its pilot phase, the grant will support established developers with a successful track record in high-quality carbon credit projects, requiring them to anchor a project development team in Singapore. Projects eligible for the grant must align with Singapore’s International Carbon Credit (ICC) Framework and be conducted in countries with which Singapore has carbon credit collaboration agreements. The grant will cover activities such as feasibility studies, carbon stock assessments, greenhouse gas reduction estimates, and local stakeholder engagement.
Jacqueline Poh, Managing Director at EDB said, “The Carbon Project Development Grant is designed to catalyse growth in Singapore’s carbon services and trading ecosystem and develop a supply of high-quality carbon credits to support our climate ambitions. Leading carbon project developers can benefit from Singapore’s strengths as a global business hub to originate, finance and develop carbon projects that meet the needs of countries and companies in the region.”
This new grant builds upon Singapore’s broader efforts in carbon market development, including the recent launch of the Singapore Carbon Market Alliance (SCMA) in collaboration with the International Emissions Trading Association (IETA). The SCMA brings together international carbon credit developers and Singapore-based companies with strong sustainability commitments, aiming to enhance access to Article 6 credits.
As part of its long-term strategy, Singapore aims to position itself as a central hub for carbon services and trading in Asia, with over 120 firms engaged across the carbon management value chain. This grant, alongside initiatives like the SCMA, reflects Singapore’s commitment to becoming a leader in the carbon market, supporting both local and regional decarbonisation goals.
