Singapore and World Bank launch programme to strengthen global carbon markets infrastructure

Government of Singapore has partnered with the World Bank Group to launch the Singapore Carbon Markets Programme, a new initiative aimed at improving the integrity, scalability and accessibility of global carbon markets.

Announced at the Innovate4Climate conference in Singapore, the programme forms part of an expanded strategic partnership between Singapore and the World Bank Group and is designed to address structural barriers that currently limit the growth of high-integrity carbon trading systems.

The initiative focuses on three core areas: strengthening carbon market infrastructure and digital systems, improving mechanisms for monetising carbon credits, and supporting developing countries in building the institutional capacity required to participate effectively in carbon markets. Together, these measures are intended to reduce transaction costs, increase transparency and build confidence among market participants.

A key component of the programme is the development of interoperable digital carbon registries aligned with international standards. These systems are expected to improve monitoring, reporting and verification processes, including for emerging credit types such as regenerative agriculture, while also enhancing the accuracy and traceability of emissions reductions.

The programme will also pilot new approaches to aggregating demand and supply for carbon credits at both buyer and national levels, aiming to reduce friction in transactions and make it easier for projects in developing markets to secure investment. In parallel, it will support governments in designing carbon market strategies, policies and regulatory frameworks through technical assistance and cross-country collaboration.

The World Bank Group said the initiative builds on its long-standing experience in climate finance and development support, with a focus on enabling countries to access funding for climate mitigation projects while ensuring environmental integrity and social benefits for local communities.

Singapore’s role in the programme reflects its broader positioning as a regional hub for carbon trading and climate finance. The country introduced a national carbon tax in 2019 and has since signed carbon credit purchase agreements with several partner countries. It also co-leads international efforts such as the Coalition to Grow Carbon Markets alongside the United Kingdom and Kenya, and is a founding partner of the Climate Action Data Trust, which aims to improve transparency and prevent double counting in global carbon markets.

Officials from both Singapore and the World Bank Group said the programme is intended to strengthen trust in carbon markets and enable wider participation from developing countries, while helping scale climate finance flows needed to support global decarbonisation efforts.