Singapore Commits to Carbon Trading and Innovation in Green Tech

Singapore is making bold moves in its journey to net zero, preparing to purchase its first batch of compliant carbon credits. This step supports its commitment under the Paris Agreement to offset emissions while positioning itself as a leader in the growing global carbon market.

A close-up of a young green seedling with Singapore’s skyline in the background. AI generated picture.

Singapore’s Minister for Manpower and Second Minister for Trade and Industry, Tan See Leng, recently confirmed that the country has signed carbon credit transfer agreements with Bhutan, Papua New Guinea, and Ghana. These partnerships will allow Singapore to secure verified carbon credits that contribute to its emissions targets while maintaining compliance with international frameworks. The first transactions are expected as early as 2025, though a precise timeline for implementation has yet to be announced.

Operating under the Paris Agreement’s Article 6, these agreements ensure that emissions reductions are accurately accounted for and not double-counted. Singapore projects its domestic emissions will reach 62.21 million tonnes by 2025, but carbon credits could bring this down to 59.7 million tonnes. By 2035, offsets could reduce emissions to between 45 and 50 million tonnes.

Beyond its carbon trading strategy, Singapore is also investing in long-term clean energy solutions. The government is exploring advanced nuclear technology as part of a broader plan to decarbonise its power sector, given the nation’s heavy reliance on imported natural gas and limited renewable options.

Additionally, Singapore is committing $46 million (SGD 62.5 million) to fast-track the development of innovative low-carbon technologies. This investment will support the Agency for Science, Technology, and Research (A*Star) in launching the Low-Carbon Technology Translational Testbed, a dedicated facility to accelerate the commercialisation of carbon utilisation and hydrogen energy solutions. The testbed aims to transform emerging climate technologies into scalable, market-ready products.

By integrating carbon trading with technological innovation, Singapore is reinforcing its role in the global carbon economy while driving forward sustainable energy advancements.