Carbon Markets Networking Event at COP30 Singapore Pavilion - Ms Grace Fu

Making Carbon Markets Work

1. Good evening, everyone, thank you all for joining us.

2. Here we are in Belém, right in the Amazon—the planet's lungs. What happens here affects every breath we take.

3. Countries everywhere are asking the same question: How do we protect our environment and grow our economies? Carbon markets might just be the answer—channelling money where it can cut emissions most effectively. When done right, they don't just reduce carbon emissions—they help nature and communities too.

4. Let me share five things we have learned about making carbon markets work so far.

Learning by Doing

4. First, I want to start with a simple reality. Carbon markets are still nascent, and like any emerging system, require learning by doing and improvement as we go along. If we wait for the perfect market, the perfect conditions, we will lose years of progress that we cannot afford. Those who are ready should move first, demonstrate what is possible, finetune the approach and pave the way for others to come.

5. In a nascent market, demand signals matter. In September, we contracted about 2 million tonnes of high-quality nature-based Article 6 credits from Ghana, Paraguay, and Peru to spur early demand and boost confidence in the market.

6. Last month, we launched another request for proposals (RFP) for high quality Article 6 carbon credits from countries that have signed Implementation Agreements with Singapore. This RFP will be sector agnostic and goes beyond nature-based credits.

Harmonising Standards

7. Second, harmonising standards. As we develop the market, we will inevitably face challenges including navigating a myriad of different rules, safeguards and expectations. This brings me to my second point on harmonising standards. Simplification, standardisation, and harmonisation are key for a coherent, functioning market.  Carbon market participants have to conscientiously and collectively pare down the complexity for carbon market to work.

8. This is why Singapore—along with Gold Standard and Verra—has developed an Article 6 Crediting Protocol which lays out clear procedures for countries to follow in their Article 6 implementation. This set of protocol provides standardised and streamlined procedures for governments to implement Article 6.2, and to promote consistency and integrity in Article 6.2 cooperation. This gives countries a common language and helps to facilitate a more interoperable market.

Standardisation of Quality

9. Standardisation of quality is next. For finance to flow to as many countries as possible, we need a carbon market that enables countries and projects with different regulatory and compliance capacities to participate. However, for us to discern quality, we recently enlisted the carbon rating services, to help us in making assessments in the environmental integrity of Article 6 projects.

10. These rating providers help buyers understand the risk of credits generated—from integrity risks to delivery risks. While nascent, these ratings have the potential to deliver consistent and ‘easy-to-understand’ metrics for measurement, which could help buyers compare between projects and foster market confidence. This helps to attract institutional investors, and reinforces Singapore as a trusted hub for carbon trading.

11. Put together, these efforts make markets more consistent, transparent and connected. Harmonisation does not mean uniformity. It means giving countries shared tools and common standards so that everyone can participate with confidence.

Building Trusted Markets

12. Fourth, for carbon markets to mature and scale up, governments, companies and people need to build trust. Let's be honest—the trust problem in carbon markets is something we need to address.

13. Singapore has put in place a robust International Carbon Credits (ICC) framework towards credits towards our NDC. They must meet our seven eligibility criteria: additional, real, permanent, no double-counting amongst others.

14. The government has also issued guidance to help companies use carbon credits properly as part of real decarbonisation plans. Our agency, EnterpriseSG, is working with major Asian corporates to create a buyers' coalition that will demand only high-quality credits. More details will come in 2026.

15. Just two weeks ago, our Coalition to Grow Carbon Markets—with Singapore, Kenya, and the UK leading the charge—released shared principles for corporate carbon credit use. Ten countries have already signed on, with more joining. This is government-backed credibility in action.

Scaling Through Partnership

16. Finally, no country can do this alone. We need each other.

17. That is why we have signed 10 Implementation Agreements under Article 6.2. Each one builds the connected global market we need. But agreements are just the beginning—real progress happens when we move from signing to implementing.

18. Singapore and Thailand signed our Implementation Agreement in August this year—the first between ASEAN countries. Today, I am thrilled to announce that we are publishing our eligibility list which sets out specifically the programmes and methodologies both countries will accept under our Implementation Agreement. EnterpriseSG will lead a business mission to Thailand in early 2026. We're working towards launching project applications in the first quarter of 2026.

19. Huge thanks to our Thai partners, especially Her Excellency Ms. Patranant. Our collaboration with you and your team has been fantastic.

Wrapping Up

20. I have spoken at length about Singapore's vision for carbon markets: learning by doing, simplifying and harmonising standards, setting quality standards, building trust in the market, and scaling impact through global partnership.

21. But here's what really counts—it is not about the agreements we sign, but the carbon we remove and the communities we help along the way. Carbon market is a source of finance that can benefit countries, communities and our planet.

22. Each of you can make this vision real. Let's use tonight's conversations to turn carbon market potential into climate solutions that work right now, right here.