Written Reply to Parliamentary Question on Carbon Rating Service Providers

Question:

Mr Dennis Tan Lip Fong: To ask the Minister for Sustainability and the Environment (a) what governance frameworks and due diligence ensured the independence of BeZero Carbon, Calyx Global, and Sylvera during their appointment to assess carbon credit integrity; and (b) what oversight mechanisms mitigate potential conflicts of interest regarding these firms’ commercial relationships with international credit developers when supporting Singapore’s environmental integrity assessments of carbon credits.

Answer:

The carbon rating service providers - BeZero Carbon, Calyx Global, and Sylvera – were appointed by NEA through a competitive tender process to provide independent assessment of carbon credit methodologies and projects, supplementing the Government’s environmental integrity assessments under the International Carbon Credits (ICC) Framework. Providers were selected based on their independence, transparent publication of their ratings, methodologies and frameworks, capabilities, market expertise, team qualifications, track record and cost competitiveness.

NEA maintains oversight through disclosure and declaration requirements to identify potential or perceived conflicts of interest during the contract period and regularly monitors the providers' commercial relationships. NEA will manage work allocation to providers to ensure that no single provider develops undue influence on assessment outcomes, and that providers are excluded from assessing projects where they have existing commercial relationships or financial interests that could compromise independence.

These providers serve to supplement, rather than replace NEA’s environmental integrity assessment of carbon credit projects. Approvals remain with the Government, evaluated against Singapore's Eligibility Criteria to ensure the high environmental integrity of ICCs.