Regional corporates, financial institutions and climate organisations have kicked off a new Singapore-based coalition with aims to channel financing into high-quality carbon projects and restore confidence in voluntary carbon markets.
Launched at the GenZero Climate Summit 2026 on Tuesdsay, the Action for a Resilient Climate (ARC) Coalition brings together companies including Tencent, Mitsubishi Corporation, CATL, Osaka Gas, Vale and Rubicon Carbon, alongside organisations such as conservation group WWF Singapore and Singapore government body Enterprise Singapore.
The coalition’s main goal is to aggregate corporate demand for “high-integrity” carbon credits — credits tied to projects with stronger environmental and social safeguards — and use that demand to unlock financing for climate mitigation projects, with a focus on Asia, the members said.
The initiative comes at a difficult time for voluntary carbon markets, which have faced ongoing scrutiny over the credibility of nature-based offset projects, inconsistent standards and falling buyer confidence. Global carbon credit retirements have declined in recent years as companies became more cautious about offsetting claims amid concerns over greenwashing.
ARC Coalition members explained the market needs coordinated action to rebuild trust and create clearer demand signals for project developers and financiers.
“Carbon markets can direct capital to underlying activities that would not already be commercially viable,” said Frederick Teo, chief executive officer of Temasek-backed climate investment firm GenZero, during the launch event.
“A lack of demand commitment for carbon credits generated from high-quality decarbonisation projects is holding back investments into these carbon projects,” he said.
The coalition aims to procure at least 10 million tonnes of carbon credits by 2030. Members said this pooled demand could help scale projects that struggle to secure early-stage financing, including those focused on emissions reductions, removals and nature restoration.
ARC also intends to establish a financing facility to support early-stage projects through blended finance mechanisms. The facility is being developed with financing partners including Rubicon Carbon.
The coalition said it will develop transparent standards for carbon credit procurement aligned with international frameworks such as those developed by the Integrity Council for the Voluntary Carbon Market (ICVCM) and the Coalition to Grow Carbon Markets.
ARC signalled it wants flexibility to support promising projects that may not yet meet all mainstream market benchmarks but demonstrate strong long-term climate potential.
The coalition will also provide shared due diligence and project assessment processes intended to simplify carbon credit procurement for corporates entering the market.
Asia is likely to become an increasingly important source of demand for voluntary carbon credits as governments and companies across the region strengthen decarbonisation targets while confronting hard-to-abate emissions in sectors such as aviation, shipping, heavy industry and energy, industry watchers say.
Singapore has positioned itself as a regional carbon services hub in recent years, launching initiatives such as carbon credits marketplace Climate Impact X and introducing frameworks for international carbon trading under Article 6 of the Paris Agreement.
The ARC Coalition also announced a partnership with the Symbiosis Coalition, a buyers’ coalition focused on high-quality nature-based carbon removals, to exchange best practices on due diligence, contracting and carbon credit quality standards.
