Singapore in talks with Australia to join voluntary carbon market coalition

Singapore is in discussions with Australia to join the Coalition to Grow Carbon Markets initiative, which aims to strengthen voluntary demand for high-integrity carbon credits, according to an official from Singapore's National Climate Change Secretariat (NCCS).

Launched in June by the United Kingdom, Singapore, and Kenya, the Coalition seeks to promote a level playing field and uphold integrity in voluntary carbon market usage.

"Australia is well-positioned to partner with Singapore in promoting robust global carbon markets," Singapore's Ambassador for Climate Action Ravi Menon said during a panel discussion at Carbon Market Institute's two-day Singapore Carbon Market & Investor Forum in Singapore starting Oct. 16.

"In particular, Singapore looks forward to Australia joining the Coalition to Grow Carbon Markets," Menon added.

Platts, part of S&P Global Commodity Insights, assessed the Generic ACCU at A$38.15/mtCO2e, unchanged day over day, while Human-Induced Regeneration ACCUs rose by 40 Australian cents to A$38.40/mtCO2e Oct. 16.

Australia Carbon Credit Units (ACCUs) are a type of compliance carbon credit used in Australia's emissions trading scheme, or the Safeguard Mechanism.

No Article 6 pathway for ACCUs under Singapore market yet

On the sidelines of the forum, Menon clarified that there have been no formal discussions with the Australian government regarding the integration of ACCUs under Article 6 in Singapore's carbon markets due to Australia's current domestic approach and the compliance nature of these instruments, Menon said.

At the current juncture, Australia has no plans to engage in international carbon market collaboration through Article 6 of the Paris Agreement to meet its emissions reduction targets due to its abundant natural resources, according to Paris Agreement Article 6 Implementation Partnership.

"Developers in Australia and New Zealand are not really keen or have scope to enter VCM market because of high prices in their respective compliance emission trading scheme," an Australia-based trader told Platts.

In September, Australia set a target to cut its emissions by 62-70% below 2005 levels by 2035 under its revised Nationally Determined Contributions.

On Oct. 16, the Integrity Council for the Voluntary Carbon Market (ICVCM) established its Asia Pacific Hub in Singapore, aimed to deepen engagement in the region's evolving carbon markets, Platts reported earlier.

The ICVCM was set up as the global governance body for the voluntary carbon market to develop and oversee the Core Carbon Principle (CCP) label for credits—a quality benchmark that ensures the environmental integrity of voluntary carbon credits.

However, Menon told Platts exclusively that there are no ongoing discussions with the ICVCM about recognizing a single credit label under Singapore's Article 6 market framework. He stated that the use of labels like CCP and CORSIA in official documents is intended to offer transparency without suggesting formal market recognition.

Singapore currently holds bilateral carbon market implementation agreements with 10 countries, including Bhutan, Chile, Ghana, Papua New Guinea, Peru, Paraguay, Rwanda, Thailand, Mongolia, and Vietnam.