Speech by 2M Tan See Leng at the GenZero Climate Summit Insights 2025

Distinguished guests

Industry partners

Ladies and gentlemen

Introduction

1. I am very happy to be here for this morning to open the inaugural GenZero Climate Summit Insights 2025.

2. The theme of today’s event – “Overcoming Paralysis” – reflects the challenging state of global climate action in 2025.

   1. It has been 10 years since the historic Paris Agreement, and over 20 years since the first IPCC report outlined the international severity of climate change.

   2. There is heightened awareness on the urgent need for collective action to address climate change. And we have made some progress. Two years ago, at the 2023 Global Stocktake, nearly 200 countries agreed to transition away from fossil fuels in energy systems and triple renewable energy capacity.

3. The current economic environment which is marked by slowing growth, resurgence in protectionism, and inflationary pressures could result in countries and companies delaying action. But nature waits for no one, and the effects of climate change will continue to persist and will worsen. Choosing inaction today is effectively also choosing to accelerate towards a certain and grim future. We simply cannot afford to be paralysed.

4. The launch of this event, a collaboration between GenZero, the Economic Development Board and Enterprise Singapore, is a timely call to overcome the paralysis we see in climate action. Given the topics of discussion later this morning, I will focus on what is happening in the carbon markets today.

 Overcoming paralysis in carbon markets

5. Singapore recognises that carbon markets are a critical enabler for decarbonisation. International cooperation is needed for both countries and companies to achieve their climate commitments.

   1. To this end, Singapore has been advancing Article-6 partnerships with like-minded countries. Our first Implementation Agreement with an Asian country, Bhutan, was signed in February this year.

   2. We introduced the International Carbon Credit Framework, or ICC Framework, allowing companies the option to use eligible ICCs compliant with Article-6 to offset up to 5% of their carbon tax liability.

   3. More countries and blocs, such as the EU, are considering the use of Article-6 credits in compliance schemes. 

6. But carbon markets continue to stall. Why is that so? I will address three key obstacles today: first, a lack of common standards, second, financing gaps, and third, capacity constraints.

Lack of Common Standards

7. Carbon markets face a fragmented landscape of policies and standards. The voluntary carbon market has more than 15 carbon crediting standards covering over 100 active methodologies today. These standards and methodologies are generally not interoperable with the compliance market, especially when countries set up their own national standards and methodologies.

8. Meanwhile, international standards bodies are reviewing how they define credible corporate action to reach net zero, including the role of carbon credits. Their ongoing reviews and lack of consensus put the market on hold in the interim. This is therefore preventing more corporate buyers from participating in the carbon markets, out of a concern that the carbon credits they buy do not demonstrate credible climate action.

9. Singapore is cutting through this complexity. Let me first talk about Article-6 carbon market.

   1. First, Singapore has been leveraging established carbon crediting programmes such as Verra, Gold Standard, Global Carbon Council (GCC) and ART-TREES in our compliance scheme to minimise fragmentation and accelerate time-to-market.

   2. Second, Singapore is also working with Verra and Gold Standard to develop an Article-6.2 Crediting Protocol setting out recommended processes for governments to work with independent carbon crediting programmes like them in their implementation of Article-6.2.  This is aimed at supporting countries who are keen to participate in Article-6 and developing their policy frameworks.

      1. I am happy to update that we published an initial set of recommendations during COP29 last year. We welcome further collaboration with interested parties to enhance harmonisation and unlock high-integrity Article-6 carbon markets at scale.

   3. Beyond compliance credits, companies have provided feedback on the need for more granular and practical guidance on the credible use of carbon credits in the voluntary carbon market. We are acting on this feedback.

      1. Later this year, the government will publish voluntary guidance on how companies subject to our climate reporting requirements can use carbon credits alongside a credible decarbonisation plan.

      2. We are developing this with input from industry partners such as the Singapore Sustainable Finance Association (SSFA). The goal of this guidance is to provide companies with more clarity so that they can participate in the voluntary carbon market confidently while taking bold steps to reduce their emissions.

      3. Singapore is not alone in this endeavour. We are also engaging like-minded countries to align our efforts on the voluntary guidance to foster market linkages and build greater trust in voluntary carbon markets.

Lack of Financing

10. Next, I will touch on the lack of sufficient financing as a barrier to scaling up carbon markets.  

11. Project developers in carbon markets face high upfront costs from conducting feasibility studies to project design and implementation. For many developers, especially in emerging markets, these costs can be difficult to manage. Investors remain cautious without clear investment pathways and long time horizon to see returns. This limits both the diversity and scale of projects that they can undertake.

12. Blended finance, including grants and philanthropic capital, can help to de-risk projects.

    1.     To this end, the EDB introduced a new Carbon Project Development Grant on the sidelines of COP29 to provide support for leading project developers to originate early-stage Article-6 carbon projects. Since then, the response from project developers has been encouraging. We have seen promising proposals that will help to unlock the mitigation potential of Southeast Asia and beyond, in areas such as nature and technology-based solutions. We are not stopping here.

    2. Today, I am happy to announce that EDB and Temasek Trust Foundation Advisors (TTFA) will be mobilising more impact capital to accelerate the growth of high integrity carbon markets.  More details will be shared with you by EDB later.

13. I encourage the industry to continue engaging us on opportunities to scale up financing. We welcome more global financial institutions and philanthropic funds to come forward and collaborate with us.

Lack of Capacity

14. Lastly, building capacity is essential to scaling carbon markets.

15. For the potential of Article-6 to be fully unlocked, countries need strong institutional frameworks and infrastructure in place. However, not all countries have the resources or capabilities to do so. While there is a growing number of programmes focused on building capacity, there is a need for deeper and more hands-on support.

16. I am pleased to announce that the government will expand capacity building initiatives over the next few years. MTI will collaborate with the Singapore Cooperation Enterprise (SCE) to curate and deliver new capacity building initiatives that support our partner countries in fully operationalising Article-6 cooperation. We intend for these programmes to address specific needs of each country because each of them are at different stages of readiness.  This builds on the existing Sustainability Action Package (SAP) which was announced in 2022.

17. Building our own domestic capacity is equally important. This year, Enterprise Singapore and EDB partnered Nanyang Technological University (NTU) to establish the Carbon Markets Academy of Singapore (CMAS) to equip professionals with the skills needed to take on emerging roles in carbon services and trading. Over 100 participants across two cohorts have already completed or enrolled in the course since its launch in January this year.

18. We are encouraged by the healthy interest in these programmes, and we will continue to invest in local talent development.

19. I am pleased to share that the National University of Singapore (NUS) will launch a new Professional Certificate in Carbon Services and Trading under its Sustainability Academy.  More details will be shared tomorrow during the Sustainable Futures Forum at Ecosperity Week.

20. Today, SkillsFuture Singapore, EDB, and Enterprise Singapore have also launched our first national Carbon Services and Trading Skills Framework. Developed in consultation with the industry, the framework will help Singaporeans gain a fuller understanding of the career opportunities and skills required to seize opportunities in this field; and guide our Institutes of Higher Learning ensure that Pre-Employment Training and Continuing Education and Training programmes align with the evolving talent needs of this sector.

21. I am certain that these two new initiatives will support employers in Singapore with upskilling and talent development to drive their carbon market growth strategy. Beyond institutes of higher learning, we welcome collaboration with industry players to build capacity in different parts of the carbon markets ecosystem.

 Conclusion

22. In conclusion, Singapore will promote common standards, expand financing support and strengthen capacity-building in carbon markets. I’ve announced a list of measures and policies that we will be implementing throughout the year to support these initiatives.

23. Ladies and gentlemen, well-functioning and high-integrity carbon markets are essential to the global pathway to net-zero. Notwithstanding the extenuating circumstances that we are all facing today globally, I encourage everyone here present here to stay the course.  Every obstacle we overcome today becomes a stepping stone for a better world tomorrow.  I wish all of you a fruitful conference ahead. 

24. Thank you.