More seed funding for carbon projects as Singapore overcomes climate paralysis: EDB, MTI
[SINGAPORE] To bridge the financing gaps in scaling up carbon markets, Singapore government agencies are mobilising more capital to support early-stage projects that require high upfront costs.
This includes a new donor-advised fund launched by the Singapore Economic Development Board (EDB) and TT Foundation Advisors (TTFA), the philanthropy advisory arm of Temasek Trust, announced Jermaine Loy, managing director of EDB, at GenZero Climate Summit Insights on Monday (May 5), the first day of Ecosperity Week 2025.
Managed by TTFA, the new fund will unlock capital from family offices and foundations for projects that generate high-integrity Article 6 carbon credits under EDB's Carbon Project Development Grant. Article 6 of the Paris Agreement sets out how countries can pursue voluntary cooperation to reach their climate targets.
Loy noted a 'strong momentum' as more private capital owners come onboard, and welcomes those who share the vision to join hands.
To date, S$20 million has been secured to co-fund the development of high-quality carbon projects, and several family offices are in discussions with EDB and TTFA.
'Whether it is to support climate mitigation efforts domestically or regionally, Singapore stands ready to work with like-minded partners. We believe that through these collaborations, we can turn moments of paralysis into decisive climate actions,' said Loy.
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At a keynote address, Tan See Leng, Minister for Manpower and Second Minister for Trade and Industry, highlighted the Singapore government's commitment to scaling up financing for carbon market development both domestically and regionally.
Noting the need for support to build capabilities for neighbouring countries, Dr Tan said that the government will extend capacity-building initiatives over the next few years.
'MTI (Ministry of Trade and Industry) will collaborate with the Singapore Cooperation Enterprise to curate and to deliver new capacity-building initiatives that can support our partner countries, including operationalising Article 6 (of the Paris Agreement) cooperation,' highlighted Dr Tan.
EDB's Carbon Project Development Grant, launched in November 2024, has been awarded to three established project developers – 3Degrees, Climate Bridge and The Nature Conservancy, which 'bring extensive global experience in developing nature and technology-based carbon projects', noted Loy.
'They will put these experiences to work, in early-stage feasibility studies, in countries where Singapore has an Article 6 collaboration with,' he added.
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