Singapore Releases Draft Guidelines on Voluntary Use of Carbon Credits

On June 20, 2025, Singapore’s National Climate Change Secretariat (NCCS), Ministry of Trade and Industry (MTI), and Enterprise Singapore (EnterpriseSG), in collaboration with the Singapore Sustainable Finance Association (SSFA) and other industry partners, published a draft guidance for companies on the voluntary use of carbon credits. Companies purchase carbon credits—certificates representing the reduction or removal of greenhouse gas (GHG) emissions—for two primary reasons: (1) to meet obligations under regulatory frameworks or targets set by the United Nations Framework Convention on Climate Change (UNFCCC) when direct GHG reduction is challenging, and (2) to fulfill voluntary climate commitments.