Govt alliance launched to spur voluntary carbon market

A first-of-its-kind government alliance between Singapore, the UK and Kenya aims to spur corporates in those countries to voluntarily buy carbon credits as part of their emissions-cutting efforts.

- Shabana Begum

The alliance, called The Coalition to Grow Carbon Markets, was launched on June 24 at the London Climate Action Week.

While the three countries are the pioneering members of the alliance, other nations are invited to join and grow the coalition, which hopes to raise the standards of the unregulated voluntary carbon market globally.

On June 24, Panama and France became the latest members, and Peru endorsed the coalition.

By growing the demand for high-integrity credits, the carbon market could expand to as much as US$250 billion (S$320.5 billion) by 2050.

This can support sustainable development, agriculture, clean energy, and nature conservation and restoration.

The launch comes days after Singapore released a draft guide for local companies planning to use carbon credits voluntarily to meet their respective net-zero targets.

The companies are urged to exhaust all possible ways to cut their carbon footprint before turning to carbon credits to offset their remaining emissions.

One carbon credit represents one tonne of carbon dioxide that is either removed from the atmosphere, such as through carbon capture, or prevented from being released.