Financial institutionsEntities licensed by or exempted from licensing. based in or outside Singapore, which plan to establish or expand carbon market activities in Singapore.

The establishment or expansion of the activity must not have commenced at the time of application.

New headcounts predominantly undertaking: 

• Carbon credit project financing and origination
• Carbon credit funds development
• Carbon credit insurance underwriting and product structuring
• Carbon credit trading and brokerage
• Carbon market entry assessment and preparation

• Manpower costs associated with the qualifying activities
• Office rental expenses, only for FIs that do not yet have a presence in Singapore.
• External Auditor’s certification, i.e. fees incurred for the certification of qualifying expenses by an external auditor, for the purpose of claims submission to MAS

• Singapore-based financial institutionsEntities licensed by or exempted from licensing. involved in carbon markets activity - participating in offtake, trading or financing of carbon credits; or
• CompaniesIncludes international organisations, such as the International Finance Corporation or World Bank, but excludes sovereigns. purchasing carbon credit insurance from Singapore-based insurance brokers and insurers.

A qualifying transaction is a carbon credit-related activity and should not have commenced at the time of application. 

The carbon credits from the transaction must meet at least one of the following:

• Issued from a carbon-crediting programme assessed to be in adherence to the Core Carbon Principles Assessment Framework (CCP-eligible) by the Integrity Council for the Voluntary Carbon Market (ICVCM); 
• Issued from a carbon crediting programme endorsed under the International Carbon Reduction and Offset Alliance (ICROA); 
• Issued from a Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) eligible emissions unit programme that meet the Program Design Elements Criteria and the Carbon Offset Credit Integrity Assessment; 
• Issued under a national programme as part of a national compliance or voluntary scheme; and
• Part of an Article 6 transaction (an Article 6.2 transaction between two countries, through an implementation agreement or equivalent, or an Article 6.4 emissions reduction unit).

For Singapore-based Financial Institutions

• A qualifying transaction would include one or more of the following:
• Financing of carbon credit projects through debt or equity funding;
• Structuring of carbon credit linked instruments such as carbon credit linked loans or bonds;
• Structuring of carbon credit funds;
• Trading and/or brokering of carbon credits for clients; and
• Off-taking of carbon credits.

For all other Companies Purchasing Carbon Insurance

A qualifying transaction would include the use of carbon insurance products as part of carbon credit project development and offtaking, by a Singapore-based broker or insurer.

For Singapore-based Financial Institutions

Professional Services fees associated with the financing and trading of carbon credits, and external auditor’s certification:

• Technical and environmental due diligence, e.g. validation and verification of carbon credit issuance.
• Quality and integrity assessment, e.g. carbon credit rating assessment;
• Associated legal and consultancy fees, e.g. drafting of term sheet and contracts, consultancy studies/market intel subscription on market access, intelligence, policy updates;
• Associated risk management fees, e.g. carbon insurance premiums and associated risk advisory costs.
• External Auditor’s certification, i.e. fees incurred for the certification of qualifying expenses by an external auditor, for the purpose of claims submission to MAS.

For All Other Companies Purchasing Carbon Insurance

Professional Services fees associated with the use of carbon insurance products paid to Singapore-based insurance brokers and insurers and external auditor’s certification:

• Associated risk management fees, e.g. carbon insurance premiums and associated risk advisory costs. 
• External Auditor’s certification, i.e. fees incurred for the certification of qualifying expenses by an external auditor, for the purpose of claims submission to MAS. 

For Singapore-based Financial Institutions

• To submit a report on the completion of the carbon credit transaction including relevant documentation e.g. legal agreements, co-signed term sheets, certificate of insurance etc., detailing project attributes and emissions reductions from supported carbon credit project. 
• More than 50% of the gross revenueThis includes insurance premiums received, brokerage fees, fund management fees, loan interests. This figure is net of all internal recharges. from the carbon credit activity is attributable to a licensed financial institution in Singapore.
• More than 50% of the total costs incurred (i.e. all qualifying expenses, less External Auditor’s certification) must be attributable as gross revenue to Singapore-based service providers and/or insurers/broker.

For All Other Companies Purchasing Carbon Insurance

• To submit a report detailing project attributes and emissions reductions from supported carbon credit project, as well as document showing that the insurance policy is in force. 
• More than 50% of the total costs incurred (i.e. all qualifying expenses, less External Auditor’s certification) must be attributable as gross revenueThis includes insurance premiums received, brokerage fees. This figure is net of all internal recharges. to Singapore-based insurance brokers and insurers.

Application is on an ex-ante basis. 

Interested applicants should reach out to fsdf@mas.gov.sg . Qualifying applicants should submit their application before commencement of the qualifying transaction.  

For companies purchasing carbon credit insurance products, the application must be co-signed by the insurer/broker of the carbon credit insurance.