Due Diligence on Carbon Credits Issued by Gold Standard and Verra
- Mr Chua questioned whether due diligence was done on Gold Standard and Verra carbon credits before MOUs were signed, what the findings were, and whether the MOUs would continue given recent claims about Verra's "phantom" credits.
- Minister Grace Fu explained the MOUs are non-binding and aim to help Singapore companies use high-quality international carbon credits to offset up to 5% of taxable emissions from 2024, with Gold Standard and Verra selected due to their CORSIA acceptance.
- The government is aware of media reports questioning Verra's credits and will finalize environmental integrity criteria later this year, publishing a whitelist of acceptable carbon credit programs and host countries.
- In follow-up, Mr Chua asked how the Ministry will verify credit authenticity and ensure companies buy legitimate credits, to which the Minister responded that the government will set standards via the whitelist, but companies must ultimately assess methodologies themselves.
- The Minister emphasized that the carbon credit market is broad and companies should follow government guidance while exercising their own due diligence in selecting and using credits.