Singapore forms government coalition with UK, Kenya to grow carbon markets
[SINGAPORE] Singapore, the United Kingdom and Kenya have formed a government-led coalition aimed at growing 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
3 hours ago
- Business Times
Eight-country coalition aims to tax luxury air travel
[SEVILLE, Spain] Countries including France, Kenya, Barbados and Spain on Monday launched a coalition to push for taxes on wealthy air passengers to help poorer nations respond to climate change, the French presidency said. The coalition, which also brings together Somalia, Benin, Sierra Leone and Antigua and Barbuda, said it would work to increase the number of countries taxing plane tickets, including business-class travel, and private jets. The air industry is a major source of the polluting emissions that contribute to global warming, which inflicts its worst impacts on vulnerable developing countries that are least responsible. Ahead of November's UN climate summit in Brazil, the French presidency said in a statement the group would work on making the aviation sector contribute more to funding climate adaptation. The aim would be to plough at least some of the tax proceeds into 'resilient investments and fair transitions' and help poorer countries raise more domestic revenue, a key factor for development, the statement added. France, Kenya and Barbados have previously lobbied for such 'solidarity levies' to raise money for climate action, suggesting taxes on shipping, fossil fuels, plastic and cryptocurrency. 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 group has suggested levies on flying could raise up to 187 billion euros (S$280 billion) if they were applied across the board. Greenpeace welcomed an 'important step' to raise more money from 'the most elite and polluting form of travel', which has remained 'undertaxed'. 'Bold, cooperative action that makes polluters pay is not just fair - it's essential,' Greenpeace's global political lead Rebecca Newsom said in a statement. The announcement came during a UN development conference in Spain that aims to deliver fresh impetus for a sector reeling from severe cuts to foreign aid, which have repercussions for poor countries' battle against climate change. Wealthy nations that have historically done the most to drive climate change are obliged to provide finance to help poorer countries adapt to its consequences under the 2015 Paris Agreement. REUTERS
Business Times
2 days ago
- Business Times
Renewable energy source important factor in location of IBM data centres
[SINGAPORE] South-east Asian markets that have a renewable energy source might have a leg up in attracting American tech giant IBM to set up data centres. While having renewable energy is not the only determining factor, it is an important criteria that the technology company considers when assessing where to locate its data centres, said its chief sustainability officer Christina Shim in an interview with The Business Times. When asked whether South-east Asian markets would be more attractive as a location for IBM to set up its data centres if it were to green its energy mix, Shim said: 'Could it help? Absolutely. I think we're all aligned, and making sure that this is an important factor as part of the decision. But it would have to be balanced out with all the other factors.' Shim noted that renewable energy is more accessible in some regions than in others. This is partly why the technology company had set a target of sourcing 90 per cent of the electricity it consumes worldwide from renewable sources by 2030, though it would like to push past 90 per cent if possible. It has an interim goal of 75 per cent by this year, which Shim said it is 'on track, if not a little early' in meeting. IBM has also set a target of achieving net zero greenhouse gas emissions by 2030, with an interim goal of reducing its emissions by 65 per cent by this year against its 2010 levels. 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 If the company does decide to set up a data centre in a location where there are no renewable energy sources, then it would have to balance that out with the rest of its portfolio of data centres, Shim added. The company currently operates more than 60 data centres across the globe, out of which about 10 are in Asia-Pacific. 'If the region here is able to diversify its energy mix more by that point, and we are trying to keep in touch with our global real estate, (as well as) what's happening with government and regulatory affairs regionally... we are keeping on top of any sort of planned investment in those areas to see how we can better shift and evolve with what's happening on the ground,' Shim added. Besides whether a location has renewable energy source, Shim said, data centre management efficiency is also important. 'Can you also improve the optimisation of the data centre itself, and using the right technology internally to be able to do that? That's also pretty powerful,' she added. Shim also said that IBM will continue to embed sustainability into its business, even though climate change has been deprioritised by the current United States administration under President Donald Trump. Integrating sustainability is not just about being a good corporate citizen, but is 'fundamentally good economics for the business and its foundation for growth', Shim added. 'It shows increased innovation. It's additional revenue generation. It's good for talent attraction... Regardless of all the changes, we are focused on maximising long-term value for our clients, for our partners, for us.' For example, with more businesses looking at incorporating artificial intelligence (AI) into their business operations, there is more work looking at how AI models can be trained more efficiently, so that it is more cost-efficient for companies to use such technologies. Shim sees opportunities for AI and sustainability in the area of improving ESG data in Asia. Besides helping to collate and make sense of hundreds of data points that large companies would have, it could also help support language challenges in the region. Besides sustainability reporting, AI can also be used to identify per- and polyfluoroalkyl substances – which are chemicals that are extremely persistent in the environment and human bodies – in a company's supply chain. 'How do you identify where they are in your supply chain, in your manufacturing, in your products, and then how do you make sure that you have the right sustainable replacements to make it safer for your consumers, for your customers – not just from a regulatory perspective, which is increasingly going to be enforced, but also from a consumer safety perspective,' she said. 'That is something that will also be very relevant in this region just because of how much manufacturing happens here that goes globally.'
Straits Times
3 days ago
- Straits Times
London climate week receives boost as Trump policies weigh on New York event
FILE PHOTO: Britain's Prince William, Prince of Wales walks with former Mayor of New York, Michael R. Bloomberg during the \"Leading with Impact\" event, as part of London Climate Action Week, at Bloomberg headquarters in London, Britain, June 24, 2025. REUTERS/Carlos Jasso/Pool/File Photo LONDON - London's climate week attracted record attendance, bolstered by the cloud hanging over its sister event in New York in September as the U.S. government turns its back on efforts to stop global warming and tightens entry requirements. The annual London Climate Action Week (LCAW), which ends on Sunday, more than doubled in size compared to the 2024 edition, hosting 700-plus events and more than 45,000 attendees. That was helped by the UK's more robust stance on climate action and support for visitors from developing countries, two dozen business, political and civil society sources told Reuters. "We have gone much bigger on LCAW this year - we are hosting several events and putting considerably more effort (in) than in the past. If we do send someone to New York, it will almost certainly just be an American citizen member of our team," said Alexis McGivern, Head of Stakeholder Engagement at Oxford Net Zero. Under President Donald Trump, the United States has left a global deal to lower climate-damaging carbon emissions, cut development aid, rowed back on environmental standards and moved to slash support for green technologies. By contrast, the British government was present across multiple events during LCAW, with energy secretary Ed Miliband saying he wanted Britain to be a "clean energy superpower" and to "get off the roller coaster of fossil fuel markets". 'YOU CAN TALK FRANKLY' Given the U.S. pushback, Hindou Oumarou Ibrahim, a U.N. Indigenous Peoples representative and climate change expert, said London offered more freedom to discuss climate change, diversity and human rights. "You can talk frankly with the government of the UK or any government here in London without being afraid of how you get treated, or targeted," she said. Philanthropists and private investors, too, are able to speak more openly without being targeted politically, or risking damaging business interests, she said. "This year the New York Climate Week is going to be very challenging," she said. "Not only to indigenous peoples, but even to governments. There are so many barriers that are making people say, let's act now in London." Among steps taken in London was a push by governments for indigenous peoples' land rights to be better protected and a plan to encourage companies to buy more carbon credits. Chief among the concerns about New York, particularly for civil society representatives, was whether they could even get in. TRAVEL BANS This month, the U.S. banned travellers from countries including Afghanistan, Congo Republic and Somalia - many exposed to rising extreme weather events and in need of the most help - and may yet add more. Ibrahim, whose home country Chad is also on the list, said she would travel using her diplomatic passport but was uncertain if she would be allowed in - a concern flagged by half a dozen other LCAW attendees. Helen Clarkson, CEO of Climate Group, which runs New York Climate Week, said she understood it would be harder for participants from certain countries to attend but that many businesses, governments and civil society were planning to come and were "super up for New York." " is shaping up similar to other years," she said. "This is a critical moment before COP." COP30 will take place in Brazil in November. REUTERS Find out more about climate change and how it could affect you on the ST microsite here.
