The Coalition is co-chaired (from left) by Ali Mohamed, Kenya Special Climate Envoy; Rachel Kyte, UK Special Representative for Climate; Ravi Menon, Singapore Ambassador for Climate Action. (Photo: Singapore Government)
To encourage greater corporate participation in voluntary carbon markets, the governments of Singapore, the United Kingdom, and Kenya have launched the Coalition to Grow Carbon Markets, the first government-led initiative of its kind.
The coalition aims to establish unified high-integrity standards for carbon credits across its members, boosting market confidence and incentivizing companies to invest in decarbonization.
Building trust to accelerate decarbonization in emerging markets
The coalition emphasizes that a well-functioning carbon market can unlock vital funding for sustainable decarbonization in emerging and developing economies, playing a key role in achieving global climate goals. Future financing efforts will focus on four areas: accelerating global emissions reductions, restoring nature, reducing pollution, and generating lasting co-benefits for local ecosystems and communities.
The Voluntary Carbon Markets Integrity Initiative (VCMI) will serve as the coalition's secretariat. In addition to the three founding countries, France and Panama have joined as inaugural members, while Peru has expressed support. The coalition is calling for more governments to join in strengthening carbon credit quality and reducing greenwashing risks.
Singapore’s climate ambassador and coalition co-chair Ravi Menon acknowledged the ongoing trust deficit in carbon markets but argued against abandoning the system altogether. “It is not the tool that is at fault, but the way it has been used. There are demand, supply and market infrastructure issues that we need to address,” he stated.
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A well-functioning carbon market can unlock funding for decarbonization in emerging economies and support global climate goals. (Image: Stock)
Coalition’s new carbon guidelines set for COP30 launch
The coalition plans to unveil a unified set of high-quality carbon credit standards at the UN Climate Change Conference (COP30) this November. These standards also aim to streamline cross-border carbon transactions by reducing regulatory fragmentation and enabling businesses to trade with greater confidence. The initiative also seeks to catalyze climate investments and address the $1.3 trillion climate finance gap.
According to the coalition’s statement, stronger demand for high-integrity credits could scale the voluntary carbon market to an estimated $250 billion by 2050.
Despite reform efforts, trust in the voluntary carbon market remains fragile. A study found that none of the 43 major global offset programs met their emissions reduction targets in 2024, raising concerns over the accountability of both registries and verification bodies. These findings underscore the urgency of reform. Countries including Singapore and Japan have already introduced new regulations aimed at restoring credibility to the carbon credit system.
Souce: VCMI, The Straits Times, Carbon Credits, Climate Home News
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