Keynote Speech by Minister of State for Trade and Industry Alvin Tan at GenZero Climate Summit 2026

Distinguished guests,

Industry partners,

Ladies and gentlemen,

Introduction: The Arc Reactor 

1        As a boy, one of my favourite superheroes was Iron Man. 

2        What always fascinated me most was the Arc Reactor glowing in his chest. 

3        The fictional Arc Reactor is conceptualised as a miniature tokamak, a torus-shaped chamber using powerful magnetic fields to confine high-energy plasma and power a clean fusion reaction. 

4        It serves two vital purposes: keep Tony Stark alive, and generate immense, catalytic energy needed to power incredible feats. 

5        To me, it was the ultimate metaphor for clean, limitless technology. 

6        Today, as we gather for the 4th edition of GenZero Climate Summit, I believe we are here to construct our own real-world "arc reactor." 

7        We, too, are locked in a struggle to keep our planet alive. 

8        When we look at the global climate challenge, we are fundamentally looking at a trajectory, an arc of emissions, of rising temperatures, and of ecological impact. 

9        For too long, the conversations surrounding this trajectory have been framed in stark, binary contrasts: 

·      growth versus sustainability, 

·      energy security versus decarbonisation, and 

·      technology versus nature-based solutions 

10      But we cannot afford these false divides if we are to make progress on our climate ambitions. 

11      In reality, whether we succeed or fail depends on our ability to bring these priorities together. 

12      An arc, in its very shape, is a bridge. 

13      And we ought to use it to connect technology, finance, and innovation to build a single, resilient pathway forward. 

14      This is why platforms for collaboration and partnership like this Summit are increasingly vital. 

15      To move from ambition to action, we must get three things right: 

·      First, we must sustain momentum on climate action, even in a more uncertain global environment. 

·      Second, we must strengthen trust and credibility across carbon markets to build a reliable foundation. 

·      Third, we must build stronger partnerships to scale these climate solutions effectively. 

Sustaining Momentum on Climate Action 

16      In many parts of the world, the climate agenda has slipped down the list of immediate priorities.

17      Facing intense economic pressures and geopolitical volatility, governments are recalibrating their commitments. 

18      The ongoing conflict in the Middle East has compounded these challenges, further disrupting global energy markets and shifting focus toward short-term survival. 

19      Yet, geopolitical and economic uncertainty does not slow the physical realities of climate change. 

20      Around the world, there are more frequent heatwaves, devastating floods, prolonged droughts, and extreme weather events, each with profound social and economic costs. 

21      At the same time, we are learning a critical lesson: energy security and sustainability are not opponents. They are deeply interconnected. 

22      Transitioning to more diversified, cleaner energy systems is precisely what will strengthen our long-term resilience and insulate us from volatile fossil fuel markets. 

23      Periods of uncertainty can tempt us to delay decisions or freeze investments. 

24      But we must do the exact opposite. 

25      Because when it comes to the climate crisis, the cost of inaction and delay will only compound over time. 

26      We cannot let the arc of our progress flatten when we need it to climb. 

Capital and Clarity: Building a Trusted Foundation for Carbon Markets 

27      It has been more ten years since the historic Paris Agreement was signed. 

28      Since then, global climate ambition has strengthened significantly. 

29      Net-zero commitments now cover the vast majority of global emissions. 

30      More countries have introduced carbon pricing and climate disclosure requirements, and financial institutions are increasingly factoring climate risks into how they allocate capital. 

31      These are encouraging milestones. 

32      But our focus now must shift from setting long-term targets to actively reducing emissions, and accurately measuring that progress. 

33      This means we must mobilise capital at scale and deploy practical solutions, especially within hard-to-abate sectors. 

34      Carbon markets have an indispensable role to play here. 

35      When they function effectively, they serve as a conduit, channeling finance toward high-impact projects and making abatement more cost-economical across different geographies. 

36      But for carbon markets to scale, they need two foundational pillars: trust and credibility.

37      Right now, the market suffers from fragmentation. 

38      Different standards, methodologies, and taxonomies are emerging across different jurisdictions. 

39      Meanwhile, the definitions of what constitutes a high-quality carbon credit are constantly shifting. 

40      This fragmentation creates deep uncertainty for buyers and investors, inflates transaction costs, and slows down the deployment of capital into vital climate solutions. 

41      To enter our next phase of market development, we need greater international alignment. 

42      This is where Singapore aims to contribute constructively, by playing three distinct roles: 

i.      As a Platform: convening governments, businesses, and market participants to align on standards and collective action 

ii.     As a Partner: working with industry and international stakeholders to scale practical solutions; and 

iii     As a Connector: linking supply and demand across diverse markets and geographies. 

43      We have introduced several concrete initiatives to address the barriers of cost, capital, and uncertainty. 

44      On the supply side, we are catalysing new projects: 

i      EDB’s Carbon Project Development Grant, launched at COP29, helps bridge critical early-stage financing gaps for project developers, catalysing the supply of new, Article 6-aligned projects. EDB will share details of additional grantees in the coming days. 

ii      MAS’ Financial Sector Carbon Market Development Grant, launched last October, supports financial institutions’ active participation in carbon markets by reducing near-term cost barriers, helping build the foundation for their sustained, long-term involvement. 

45      On the demand side, we are establishing clear rules of engagement: 

46      The VCM (Voluntary Carbon Market) Guidance, also launched last October by the Singapore government, provides clear assurance to businesses on how to use high-quality carbon credits as part of a credible, science-based decarbonisation plan. 

47      We are also listening closely to industry feedback. 

48      Last month, GenZero, Eng and Co., and PwC Singapore, in partnership with Singapore Sustainable Finance Association (SSFA), released an important position paper. 

49      It called for clarity on the legal nature of carbon credits as a foundational building block to scale the voluntary carbon market. 

50      We are studying these recommendations to see how we can build on our existing VCM guidance, giving companies the legal and regulatory clarity they need to participate in the voluntary carbon market with confidence. 

Building Stronger Partnerships to Scale Solutions 

51      But no single country, and no single company, can fix today’s fragmented carbon markets on its own. 

52      We need to pool our strengths to scale climate solutions globally. 

53      For Singapore, the Article 6 market is of paramount importance. 

54      As a small, alternative-energy-disadvantaged city-state, high-integrity Article 6 carbon credits are a crucial complement to our domestic decarbonisation efforts. 

55      That is why we are actively building carbon market partnerships with countries across the world. 

56      Singapore has signed 11 Article 6 Implementation Agreements (IAs) with partner countries such as Ghana, Bhutan and Peru, and ASEAN neighbours such as Thailand, Vietnam and the Philippines. And 20 MOUs with over 20 countries. 

57      We are also working closely with businesses to mobilise capital and crowd in investments for Article 6 Carbon credit projects under our IAs. 

58      I’ve seen first hand how much this matters. 

59      After we signed the Singapore-Ghana IA, I led our first business mission of 22 Singapore-based companies to Accra, Ghana, to facilitate business matching with our Ghanaian counterparts. 

60      We have since organized business missions to Peru, Paraguay and Chile, and will do more to unlock the pipeline of Article 6 carbon credits. 

61      Sovereign buyers around the world are similarly looking to Article 6 markets to bridge their transition gaps and meet their climate targets. 

62      This is why international cooperation in this space is so critical. 

63      Therefore, I am pleased to announce today that Singapore will contribute US $15 million to the Global Green Growth Institute’s (GGGI) Carbon Transaction Facility, alongside our partners the United Kingdom, New Zealand, Norway, and Sweden. 

64      This contribution will support two vital pillars: 

65      The Article 6 Readiness Facility: which focuses on building institutional capacity in host countries. 

66      The Singapore Article 6 Carbon Facility: which supports the development of projects that generate the high-quality carbon credits Singapore can procure to help meet our climate targets. 

67      Together, these two pillars address both sides of the equation: strengthening supply where technical capacity is lacking, and anchoring demand with the high-integrity frameworks the market needs to thrive. 

Igniting the ARC: The Catalyst for Market Scale 

68      Yet, even as we strengthen these foundations, a key challenge remains: corporate demand remains fragmented, and buyers are understandably cautious. 

69      Policy guidance and market infrastructure are necessary, but they are not enough. 

70      We must actively coordinate and aggregate demand if carbon markets are to achieve true scale. 

71     This brings us back to that childhood dream of an engine capable of generating immense, self-sustaining, and catalytic energy. 

72      If we are to truly bend the warming curve, we cannot rely on incremental, isolated efforts. We need a real-world "arc reactor" for the carbon market, an engine that fuses policy, capital, and corporate commitment into a single, high-output force. 

73      With that vision in mind, I am proud to launch the Action for a Resilient Climate Coalition, (ARC Coalition) today. 

74      The ARC Coalition is an industry-led carbon buyers coalition. 

75      It brings together forward-thinking corporate buyers who are serious about their decarbonisation journey and who support the use of high-integrity carbon credits to complement their direct emission reduction efforts. 

76      Enterprise Singapore is proud to play a key role in supporting this effort. 

77      The ARC Coalition is designed to act as our market's catalyst, focusing on four key objectives: 

78      First, to Aggregate Demand: By convening corporate buyers to drive adoption of high-integrity carbon credits, with a collective target to procure at least 10 million tonnes of offsets by 2030. 

79      Second, to Unlock Financing: By developing and implementing a dedicated financing facility to channel much-needed capital into early-stage, high-quality carbon projects. 

80      Third, to Set the Bar on Standards: By establishing transparent, robust criteria to guide carbon credit selection and use, drawing on leading international principles and frameworks to uphold market integrity. 

81      Fourth, to Improve Access: By streamlining the procurement process through a curated system for project assessment, selection, and contracting, allowing buyers to transact with confidence. 

82      The ARC Coalition reflects a simple, powerful belief: that policy and markets work best when they work in tandem, and that decarbonisation and economic growth are not competing priorities, but mutually reinforcing forces. 

Conclusion: Bending the Arc Together 

83      Let me conclude. 

84      The path to a net-zero future is becoming more complex, but complexity must never be an excuse for delay. 

85      Instead, complexity should inspire deeper collaboration, stronger coordination, and bolder innovations. 

86      When we set out today, I spoke of Iron Man’s arc reactor -  device built for survival, an engine designed to generate the catalytic energy needed to power great feats. 

87      The ARC Coalition we launch today is like our real-world arc reactor.  

88      It is the engine that will fuse the immense energy of corporate commitment, sovereign capacity, and global finance. 

89      By keeping this engine self-sustaining, we ensure that our markets, our industries, and our planet do not just survive, but actively thrive. 

90      If we harness this collective energy well, it can help us power this transition and bridge our divides. We can then bend the arc of history toward a sustainable, resilient future. 

91      On that note, it is my honour to officially launch the ARC Coalition. 

92      Thank you, and I wish you all a highly productive and fruitful Summit ahead.