Singapore Commits US$15 Million to Strengthen Global Article 6 Carbon Markets

Under the contribution, US$5 million will be allocated to an Article 6 Readiness Facility aimed at helping GGGI member and partner countries strengthen their technical and institutional capabilities to participate effectively in international carbon markets.

The remaining US$10 million will establish the Singapore Article 6 Carbon Facility, which will finance the development of high-integrity Article 6 carbon credit projects. The carbon credits generated through these projects will support Singapore’s climate commitments and sustainability goals.

Mr Augustin Lee, Permanent Secretary (Energy & Trade), Ministry of Trade and Industry said Singapore remains committed to advancing credible and high-integrity international carbon markets that can accelerate global climate action.

He added that the partnership would help generate high-quality carbon credits that Singapore can use to offset its carbon emissions while promoting sustainable development.

Mr Sang-Hyup Kim, Executive Director, Global Green Growth Institute (GGGI) welcomed Singapore’s partnership with GGGI and described it as an important step in expanding high-integrity, country-driven cooperation under Article 6.

Mr Kim said Singapore has played a leading role in advancing global carbon markets and noted that the partnership would strengthen collaboration with ASEAN countries. He added that the Carbon Transaction Facility works closely with governments to establish systems, policies, and partnerships that move countries from climate readiness to measurable climate action results.

The announcement also reflects Singapore’s broader climate and energy transition strategy led by Dr Tan See Leng, Minister-in-charge of Energy and Science & Technology, who has consistently highlighted the importance of international cooperation, innovation, and high-quality carbon markets in supporting global decarbonisation efforts.

GGGI is a treaty-based international organisation focused on promoting sustainable and inclusive economic growth in developing countries and emerging economies.

Source: MTI