Singapore-backed coalition to launch 1 million carbon credit tender at COP31

A coalition dedicated to increasing corporate demand for high-quality carbon credits has announced plans to launch its inaugural tender in 2027. Unveiled on the sidelines of the COP31 climate summit, the initiative aims to purchase one million tonnes of credits to support major global and Asian corporations in meeting their sustainability commitments. The Action for a Resilient Climate (ARC) coalition, which is supported by the Singapore government agency Enterprise Singapore (EnterpriseSG), intends to scale this effort to secure at least 10 million tonnes of credits by 2030.

The ARC coalition will launch its first tender for one million carbon credits in 2027.

COP31 climate summit goals and corporate action

The upcoming request for proposal (RFP) will prioritize nature-based carbon projects, specifically those involving afforestation, reforestation, revegetation, mangrove restoration, and improved forest management. Law Heng Dean, executive director of ARC, stated that the tender serves as a vital step in translating the group's ambitions into collective action. By aggregating demand, the coalition seeks to provide project developers with stronger signals and unlock necessary capital for high-quality climate solutions. The tender will focus on forward-offtake agreements, meaning buyers will procure credits to be generated and delivered at a future date, with the first credits expected by the end of 2028.

While the RFP will consider projects globally, it will favor those located in Asia that utilize internationally recognized methodologies. The coalition, formed in May 2026, includes prominent organizations such as GenZero, Bain & Company, Climate Impact X, Mitsubishi Corp, Tencent, and the World Wide Fund for Nature Singapore.

In related developments, five carbon market associations from South-east Asia have renewed their cooperation for two years to further the Asean Common Carbon Framework. This framework, established at COP29, aims to unify carbon credit trading systems across the region. The collaboration has expanded to include the Aboitiz Foundation as an observer, reflecting growing regional interest in connecting national markets. Additionally, the Economic Development Board has awarded grants to developers like Conservation International to initiate early-stage carbon projects, including forest conservation efforts in the Philippines, Bhutan, Cambodia, and Indonesia. These projects are designed to align with Article 6 of the Paris Agreement.

Why it matters

This initiative addresses critical financing gaps for nature-based climate projects, helping to scale biodiversity and community-supporting solutions. By creating a standardized and reliable demand for carbon credits, the coalition provides a pathway for Asian corporates to credibly advance their decarbonization efforts, potentially influencing regional sustainability standards and market connectivity.