As the global demand for carbon credits continues to grow, so does the debate surrounding their actual impact. Questions remain over whether carbon credits truly deliver the environmental and economic benefits they promise—and how risk is effectively factored into their pricing remains a grey area for many stakeholders.

Our opinion piece, published through The Business Times, draws attention to the quality risks financiers and governments take on when supporting carbon projects. It highlights a pressing need for more robust project selection processes, supported by standardized frameworks. This is especially critical for countries like Singapore that are scaling up their carbon credit purchases to meet their Nationally Determined Contribution (NDC) targets.

To help chart a path forward, SGFIN released a whitepaper last year, offering an approach for evaluating carbon credit quality. The report breaks down the core pillars of a high-integrity carbon crediting framework, detailing both the essential requirements, and supporting criteria that enable carbon credit frameworks to align with the best practices out there. As the industry moves toward greater accountability and transparency, approaches like these are key to unlocking trust and scaling climate finance in a meaningful way.

Links: Business Times Online | SGFIN Whitepaper