Due Diligence Conducted to Ensure Independence of Firms Appointed to Assess Carbon Credit Integrity
Ministry of Sustainability and the EnvironmentSpeakers
Summary
This question concerns the governance and oversight mechanisms ensuring the independence of appointed carbon rating firms, as raised by Mr Dennis Tan Lip Fong. Minister Grace Fu Hai Yien stated that the National Environment Agency (NEA) selected these providers via competitive tender based on their independence, transparency, and market expertise. NEA oversees these firms through disclosure requirements and monitors commercial relationships to prevent conflicts of interest, excluding providers from projects where they have financial interests. These ratings supplement the Government's assessments under the International Carbon Credits (ICC) Framework, with NEA managing work allocation to ensure no single provider develops undue influence. Ultimately, the Government retains approval authority, evaluating credits against Singapore's Eligibility Criteria to ensure high environmental integrity for all international carbon credits used for domestic compliance.
Transcript
91 Mr Dennis Tan Lip Fong asked the Minister for Sustainability and the Environment (a) what governance frameworks and due diligence ensured the independence of BeZero Carbon, Calyx Global and Sylvera during their appointment to assess carbon credit integrity; and (b) what oversight mechanisms mitigate potential conflicts of interest regarding these firms' commercial relationships with international credit developers when supporting Singapore's environmental integrity assessments of carbon credits.
Ms Grace Fu Hai Yien: The carbon rating service providers – BeZero Carbon, Calyx Global, and Sylvera – were appointed by The National Environment Agency (NEA) through a competitive tender process to provide independent assessment of carbon credit methodologies and projects, supplementing the Government's environmental integrity assessments under the International Carbon Credits (ICC) Framework. Providers were selected based on their independence, transparent publication of their ratings, methodologies and frameworks, capabilities, market expertise, team qualifications, track record and cost competitiveness.
NEA maintains oversight through disclosure and declaration requirements to identify potential or perceived conflicts of interest during the contract period and regularly monitors the providers' commercial relationships. NEA will manage work allocation to providers to ensure that no single provider develops undue influence on assessment outcomes, and that providers are excluded from assessing projects where they have existing commercial relationships or financial interests that could compromise independence.
These providers serve to supplement, rather than replace NEA's environmental integrity assessment of carbon credit projects. Approvals remain with the Government, evaluated against Singapore's Eligibility Criteria to ensure the high environmental integrity of ICCs.