Singapore Seeks Public Input on its Decarbonization Strategy

The Singaporean National Climate Change Secretariat (NCCS) is encouraging the public to share their perspectives on the country's decarbonization journey, including its climate goals, transition to a low-carbon economy, and planned decarbonization measures. Public feedback will play a key role in shaping Singapore's upcoming climate targets, measures, and policies.

The consultation period, which began on 8 October, will run until 5 November 2024. Public feedback can be submitted through this link.

Under the UN’s Paris Agreement, countries must submit their climate targets, demonstrating their 'highest possible ambition' every five years. The next target, set for 2035, is scheduled for submission by February 2025.

Singapore has been an early and dedicated participant in global climate efforts from the start. In 2020, the country submitted its enhanced 2030 Nationally Determined Contribution (NDC) and Long-Term Low Emissions Development Strategy (LEDS). A public consultation was held in 2022. Singapore has increased its commitment to reducing its yearly emissions to approximately 60 MtCO₂e by 2030, to reach net zero by 2050. Its next NDC submission is planned for early 2025.

Singapore’s decarbonization journey comprises three transitions:

1. A carbon transition to reduce emissions across all sectors
2. An energy transition to achieve a resilient net-zero electricity grid
3. An economic transition to remain competitive in a low-carbon future and to capture new green growth opportunities

In 2019, Singapore became the first Southeast Asian nation to implement a carbon pricing scheme. The Singapore carbon tax serves as a broad-based price signal, encouraging businesses and individuals to account for the cost of carbon in their decisions. In 2024, Singapore increased the carbon tax from SGD 5 per tCO₂e to SGD 25 per tCO₂e, with plans to raise it further to SGD 45 per tCO₂e in either 2026 or 2027. The Singaporean government aims to reach between SGD 50 and 80 per tCO₂e by 2030 to be net zero by 2050. This progressive increase will create a strong incentive for businesses and individuals to reduce their carbon footprint in line with our national climate objectives. Businesses can also purchase and retire international carbon credits to offset up to 5% of their taxable emissions.

Given its national circumstances, Singapore relies significantly on effective international cooperation to meet its decarbonization goals. While domestic emission reduction remains a priority, the country will seek bilateral, regional, plurilateral, and multilateral partnerships to tap into regional and global mitigation opportunities.

To promote the generation and exchange of carbon credits in support of Singapore's and other partner countries' climate goals, Singapore has signed a Memoranda of Understanding (MOUs) with multiple nations. These collaborations are aligned with Article 6 of the Paris Agreement. According to the United Nations Environment Programme (UNEP), Singapore has agreements with the following countries:

Out of these countries, only Ghana and Papua New Guinea have signed bilateral agreements (BAs) with Singapore.

Under these agreements, Singapore and its partner countries aim to develop a legally binding Implementation Agreement establishing a bilateral framework for the international transfer of correspondingly adjusted mitigation outcomes. This agreement will also identify potential Article 6-compliant mitigation activities to help both countries meet their respective NDCs.

In August 2024, Singapore's Economic Development Board and International Emissions Trading Association (IETA) launched the Singapore Carbon Market Alliance (SCMA) to help local companies access Article 6 carbon credits. Despite the currently limited domestic demand for carbon offsetting, the establishment of the SCMA is a crucial step toward developing an Article 6 market in Singapore. The SCMA is an exclusive, invitation-only alliance aimed at linking international carbon project developers, carbon credit suppliers, and Singapore-based companies that are committed to climate goals and interested in purchasing Article 6 carbon credits, as stated in the announcement.

Singapore stands as a key player in the Asian voluntary carbon market (VCM) landscape, hosting platforms such as Climate Impact X (CIX) and positioning the nation as a prominent carbon trading hub. CIX is a joint venture between large financial institutions, including the  Development Bank of Singapore, Singapore Exchange, Standard Chartered Bank and Temasek Holdings. It will comprise an Exchange for trading contracts backed by eligible credits and a Project Marketplace, a platform for nature-based projects generating carbon credits.

According to Climate Action Tracker, Singapore’s climate targets and policies are rated as “Highly insufficient,” as their current target of 60 MtCO₂e by 2030 is modelled to align with a temperature increase of over 3°C. It could be possible that in the forthcoming NDC update, Singapore could set more ambitious targets, which are more aligned with the 1.5°C limit. Among the possible strategies, Singapore could end up being more active in the Article 6 credit market if its NDC target becomes aligned with the Paris Agreement. This could lead to increased agreements with other countries and the emergence of additional projects in anticipation of Singapore’s future demand.

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