Singapore has released a draft guidance document aimed at bringing greater clarity and standardisation to how companies within its jurisdiction use voluntary carbon credits. The move signals a step forward in the city-state’s commitment to developing a credible and transparent carbon market.
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Jointly issued by the National Climate Change Secretariat, Ministry of Trade and Industry, and Enterprise Singapore—with input from the Singapore Sustainable Finance Association and industry stakeholders—the draft outlines key quality criteria that companies should follow when selecting and using carbon credits.
This eight-page document draws from existing global frameworks, including Singapore’s own International Carbon Credit Framework and the Core Carbon Principles established by the Integrity Council for the Voluntary Carbon Market (ICVCM). It also aligns with CORSIA, the international aviation carbon offset scheme. Notably absent from the guidance is the Voluntary Carbon Markets Integrity Initiative, a demand-side framework that has seen limited adoption to date.
‘One of the main challenges in the VCM [voluntary carbon market] is the lack of standardisation which has led to confusion around various industry-led standards’, the Singaporean authorities stated. ‘This has undermined market confidence and companies concerned about reputational risks are holding back from the VCM.’
They added, ‘From industry engagements over the past year, we have received feedback on the need for the government to provide guidance on the VCM.’
Beyond quality standards, the draft also explores the potential release of a Claims Guidance Code, similar to initiatives underway in the European Union. Authorities are currently gathering corporate input on this proposal.
While the guidance suggests that tools like carbon ratings agencies and insurance services may support credit assessment, it stops short of mandating their use, acknowledging their high costs. ‘Companies should do their due diligence to ensure they are purchasing high-quality credits,’ the document advises.
The draft is open for public consultation until 20 July, with Singaporean authorities inviting feedback to refine the guidelines ahead of their finalisation.
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At DGB Group, we welcome Singapore’s move toward clearer standards and greater accountability in the voluntary carbon market. As regulatory frameworks evolve to prioritise credit quality and market integrity, our nature-based solutions stand ready to meet this demand. Each of our verified carbon credits reflects a commitment to ecological restoration and measurable impact, tailored for organisations navigating increasingly rigorous sustainability expectations. As markets like Singapore’s raise the bar, the value of transparent, high-integrity projects is rising—now is the time to position your business for purpose and performance. Discover how you can be part of this transition.
