Singapore forms government coalition with UK, Kenya to grow carbon markets
One of the first tasks the coalition has set out to accomplish is to issue a set of shared principles on how corporates can voluntarily use carbon credits, so that there is consistency across jurisdictions, said a joint press statement on Tuesday (Jun 24).
They hope to finalise these guidelines by the time the next United Nations' annual climate change conference – COP30 – is held in Belem, Brazil, in November this year.
This is in response to calls from businesses for greater clarity from governments on the use of carbon credits as part of corporate decarbonisation plans.
'The shared principles will give businesses the confidence and incentives they need to invest in a proven but underused climate financing tool and continue to strengthen and scale carbon markets. The coalition will work closely with businesses, so that policies and incentives better respond to business needs,' read the statement.
The coalition – which was formed at the sidelines of the London Climate Action Week – will be co-chaired by Singapore's Ambassador for Climate Action Ravi Menon, Kenya's Special Climate Envoy Ali Mohamed, as well as UK's Special Representative for Climate Rachel Kyte.
A NEWSLETTER FOR YOU
Friday, 12.30 pm ESG Insights
An exclusive weekly report on the latest environmental, social and governance issues.
Sign Up
Sign Up
The coalition has France and Panama as its first members, and is looking to expand its membership over the coming months to include countries that are sources of demand for carbon credits, as well as countries which are sources of supply of credits.
Speaking at the coalition's launch in London, Menon said that the team has been reaching out to several countries in the last few weeks and that they expect to have a 'good-sized coalition' by COP30.
Peru has also endorsed the coalition's mission by recognising the critical role of carbon markets and corporate use of carbon credits in delivering climate-positive growth globally.
The coalition said that the set of shared principles will better reflect the true value of carbon emissions being reduced or removed, thereby helping to grow demand for high-integrity carbon credits, and increase the flow of climate finance to emerging markets and developing economies.
'This will boost investment in climate-positive businesses, sustainable development and projects such as sustainable agriculture, clean energy, as well as nature conservation and restoration,' noted the statement.
Menon added that that the shared principles are to ensure consistency but not uniformity, as individual countries may still choose to issue more detailed guidance that suits their national circumstances even as it ensures there is alignment to international standards.
On Jun 20, the city-state's National Climate Change Secretariat, the Ministry of Trade and Industry, and Enterprise Singapore jointly issued a draft guidance on how companies can voluntarily use carbon credits as part of a credible decarbonisation plan, and has invited the public to provide feedback.
Menon also said that the coalition will collaborate with industry, standard setters, and international organisations to ensure that its work is relevant and credible.
The International Chamber of Commerce and the World Business Council for Sustainable Development will be partners to the coalition. The Integrity Council for the Voluntary Carbon Market – an independent governance body that sets standards on the supply of credits – is also working with the team to support alignment between the demand and supply sides of the market.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
10 hours ago
- Business Times
Singapore shows readiness for nuclear power, could collaborate with Asean countries: IAEA chief
[SINGAPORE] Singapore has the potential to embark on nuclear power in the coming years, possibly in cooperation with other Asean countries, said the director-general of the United Nations' nuclear watchdog. 'My personal impression is that within a few years, you will see your first nuclear power (project) – be it small or bigger – and perhaps in a wider sense, in combination or cooperation with your Asean neighbors,' said Rafael Grossi of the International Atomic Energy Agency (IAEA) on Friday (Jul 25). Grossi was speaking at a dialogue on nuclear power and safety at the National University of Singapore, organised by the Singapore Nuclear Research and Safety Institute. He believes that Singapore is 'prepared to host nuclear power relatively soon', given its technological expertise and institutional maturity, as well as its decarbonisation goals. The Republic is currently studying advanced nuclear power technologies but has not decided whether to pursue nuclear power. Singapore could be 'the most perfect example of a country that needs nuclear energy,' said Grossi, citing how land constraints make renewable options such as wind power challenging. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Regional cooperation on nuclear power is 'not impossible', he added, citing how Slovenia and Croatia have 'very successfully' collaborated on a nuclear power plant. Many Asean economies are exploring nuclear power, albeit in different ways, depending on their individual economies. 'All of them are saying we want nuclear energy; how can we get it?' noted Grossi. Asked whether the recent tensions between Thailand and Cambodia could affect nuclear power ambitions in Asean, Grossi acknowledged that the world is 'increasingly fragmented'. 'But in parallel with that, we have a number of very positive developments in energy, in industry, in infrastructure all over the world. 'So the fact that we have conflict does not affect the reality that our economies continue moving – and nuclear power is part of that,' he said. He cited the development of small modular reactors (SMRs) as a promising trend, as they could offer an 'off-the-rack' option for nuclear power. 'Let's imagine, if this technology succeeds, and we see it being applied in many countries… it can be transported even by truck, lorry or barge… it's a completely different scenario than a traditional nuclear power plant,' said Grossi.
Straits Times
15 hours ago
- Straits Times
Singaporean Wipo head Daren Tang to go for second term
Find out what's new on ST website and app. When he assumed the role of director general in 2020, Mr Daren Tang became the first Singaporean to head a United Nations agency. SINGAPORE - Singaporean Daren Tang, 53, who led the World Intellectual Property Organization to the conclusion of a historic multilateral treaty that helps to protect traditional knowledge and cultural expressions, is aiming for a second six-year term in office. The director general of the global intellectual property (IP) and patents office was nominated by the Singapore Government for another term that will run from October 2026 to September 2032, the Ministry of Foreign Affairs and Ministry of Law said in a joint statement on July 24. Under his leadership, the organisation was able to conclude two multilateral treaties for the first time in more than a decade, an 'unprecedented achievement', said Minister for Foreign Affairs Vivian Balakrishnan in his nomination letter to the Wipo Coordination Committee. The Wipo Treaty on IP, Genetic Resources and Associated Traditional Knowledge (GRATK), adopted in 2024, makes it mandatory for patent applicants to disclose the origin country of genetic resources, such as from medicinal plants, as well as the indigenous communities that provided the traditional knowledge an invention drew on. It was hailed as groundbreaking in linking IP and traditional knowledge, which has typically been hard to protect, and has been viewed as a step forward in combating biopiracy, the commercial exploitation of biological resources without compensating communities and countries where the resources are from. The other treaty, the Riyadh Design Law Treaty, also adopted in 2024, simplifies the procedures for protecting industrial designs, so designers can better protect their work at home or abroad. Dr Balakrishnan said the treaties have helped to strengthen multilateralism at a time of geopolitical fragmentation. 'Under his leadership, Wipo has demonstrated that multilateralism can continue to drive real change,' said Dr Balakrishnan, noting that Mr Tang will be a 'steadfast, dependable, and principled leader who serves the interests of all Member States'. He added: 'Singapore looks forward to the support of Wipo Member States for Mr Tang's re-election as director general.' The Geneva-based Wipo is responsible for shaping global rules for IP and oversees trademarks, designs and patents. When he assumed the role of director general in 2020, Mr Tang became the first Singaporean to head a United Nations agency. Minister for Law and Second Minister for Home Affairs Edwin Tong said Wipo has made significant strides in strengthening the global IP ecosystem, promoting innovation and creativity, and enhancing inclusivity across member states under Mr Tang's leadership. In the past five years, the organisation has gone beyond its legal and technical focus to position intellectual property as a catalyst for economic growth, helping many developing member states modernise their national IP strategies, said the ministries in the statement. Wipo has also gone beyond supporting national IP strategies and has extended its help, such as through tailored projects and the Wipo Academy, to a wider spectrum of organisations including micro, small and medium enterprises, women and youth, added the ministries. The ministries also said that Mr Tang has ensured Wipo is run efficiently and effectively, maintaining its strong financial standing, adding that Wipo member states have 'warmly welcomed Mr Tang's transformational work'. Mr Tong said Mr Tang had demonstrated 'thoughtful, principled, and forward-looking leadership in steering Wipo through a time of rapid technological change and growing global uncertainties'. 'His ability to bring people together, build consensus, and foster collaboration has earned the respect and confidence of stakeholders around the world,' added Mr Tong. Mr Tang, the former chief executive of the Intellectual Property Office of Singapore, began his first six-year term at the helm of Wipo on Oct 1, 2020. He was selected by the agency's 83-member coordination committee from a slate which originally comprised 10 candidates. Mr Tang had taken over from Mr Francis Gurry from Australia, who held the post from 2008 to 2020. Before Mr Gurry, Mr Kamil Idris from Sudan held the post from 1997 to 2 008.
Business Times
a day ago
- Business Times
‘Pressing need' for investments in energy infrastructure: GIC
[SINGAPORE] Sovereign wealth fund GIC sees a 'pressing need' for investments in grid infrastructure and power equipment supply chains, as it bets on opportunities in the electrification of the economy. GIC is 'constructive' on regulated electric networks and utilities, as investing in their asset base can provide additional earnings growth, the fund said in its annual report released on Friday (Jul 25). It especially favours assets in stable jurisdictions, with regulatory frameworks that 'support high cashflow predictability by providing inflation and volume protection'. 'The world really needs all kinds of energy; I would say in a hurry as well, because especially with AI, the need for energy is just tremendous,' said GIC chief executive Lim Chow Kiat at a media briefing on Thursday. He sees GIC being suited to provide the 'large and long-term capital' that energy investments require. In its report, the sovereign wealth fund said that it has backed a Europe-based company that designs and manufactures cable systems for energy and telecommunications, as well as a utilities company generating power across several markets in Asia-Pacific. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up The utilities company used to be predominantly a coal power producer, but has gradually moved to greener sources through recent investments. When looking at fossil fuel-related investments, GIC focuses on whether there is a plan to transition from brown to green fuels, said Bryan Yeo, its group chief investment officer. 'The transition theme is the overarching one for us. If we are able to find good opportunities, good company management who have a good plan, and we track their milestones… that actually creates long-term value,' said Yeo. The focus on energy comes as multiple sectors are undergoing electrification, such as buildings – with the use of electric heat pumps – as well as transport – with the rise of electric vehicles. Electrification is driven not by government subsidies and regulation, but by improving economics, as the cost of renewables declines, GIC noted. As the share of renewables in the global energy mix rises, there is a need for solutions tackling the intermittency and distributed nature of sources such as solar and wind power. Opportunities include dispatchable baseload generation and battery storage, which GIC noted are 'integral' to tackling grid congestion. Green fuels and energy efficiency One of the long-term investment themes GIC is bullish on is the continued shift towards electrification, powered by emerging clean technologies to decarbonise the economy. A second theme which offers attractive investment opportunities is the rising adoption of energy efficiency solutions which provide both economic and environmental benefits. Clean technologies are needed for sectors that are difficult to decarbonise, such as industrials and heavy transport. Solutions include green fuels and long-duration energy storage. 'While these technologies have yet to reach maturity, GIC has backed companies with the right attributes to succeed, such as having a differentiated technological or cost advantage,' it said. For instance, GIC has invested in green ammonia projects with access to cheap renewable electricity inputs or insourced supply chains. This makes them cost-competitive relative to their peers. On the energy efficiency front, GIC sees grid optimisation solutions being essential to improve grid stability. 'The capex-intensive nature of grid investments, as well as supply chain and labour constraints, offer an opportunity for innovative solutions to ease grid congestion and improve efficiency of energy delivery,' it said. One investment opportunity is electrical equipment companies that offer smart grid hardware and software to utility customers. GIC has also invested in smart metering companies which help residential and commercial clients with energy monitoring and optimisation. In addition, the state investor has backed companies that provide energy management and cooling solutions to data centres, and sees opportunities for similar solutions in other industries. For example, in the construction sector, companies specialising in insulation could reduce power needs for heating and cooling. 'In the manufacturing sector, we see value in industry leaders in steam and compression technologies offering products that reduce customers' total lifetime energy needs,' said GIC. Natural gas persists While the trends highlighted are 'durable', they are 'increasingly fragmented' as governments respond differently to the need for energy security, GIC noted. Even with the shift to renewables, GIC expects natural gas to continue to be part of the energy mix over the medium term. This is due to its low cost, provision of baseload power and cleaner emissions profile. Natural gas 'will continue to play a key role in the US over the medium term, but renewables remain well-positioned in Europe, China and India', said Yeo. With the complex energy landscape, 'high-quality businesses with multiple pathways to win and strong pricing power are more valuable than ever', said GIC. Power and electrical equipment companies that are 'agnostic to the energy supply mix in each market' are well-positioned, as they ride on growing energy demand regardless of supply dynamics. 'As evidence of their pricing power, some of these companies have also historically delivered resilient shareholder returns even amid varying economic conditions and volatile cost environments,' said GIC. Beyond energy, solutions for adapting to climate change are another investment opportunity. These could include traditional solutions, such as climate-resistant building materials, or new innovations such as weather intelligence. 'We will continue to work to identify more investment opportunities within each adaptation solution category,' the fund said.
