Singapore is set to take a significant step in its carbon reduction strategy by purchasing its first batch of compliant carbon credits. The move aligns with its broader plan to meet Nationally Determined Contributions (NDCs) under the Paris Agreement and offset emissions on its path to net zero by 2050.
A close-up of a green sapling against Singapore’s skyline at sunrise. AI generated picture.
Singapore’s Minister for Manpower and Second Minister for Trade and Industry, Tan See Leng, confirmed that the country has signed carbon credit transfer agreements with Bhutan, Papua New Guinea, and Ghana. These agreements will allow Singapore to acquire verified carbon credits that contribute to its emissions reduction targets while ensuring compliance with international regulations. The first transactions under these agreements are expected to be implemented as early as 2025, though specific timelines for the offset process remain undisclosed.
Under the Paris Agreement’s Article 6 framework, Singapore’s carbon trading partnerships ensure that the environmental benefits of these credits are not counted twice. With domestic emissions projected to reach 62.21 million tonnes by 2025, carbon credits could help reduce this figure to 59.7 million tonnes. By 2035, Singapore anticipates emissions to range between 45 and 50 million tonnes after accounting for purchased offsets.
Beyond carbon credit trading, Singapore is intensifying efforts to decarbonise its energy sector. Given its reliance on imported natural gas and limited renewable energy options, the government is evaluating advanced nuclear technology through academic studies and international collaborations.
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Additionally, Singapore is investing $46 million (SGD 62.5 million) to accelerate the commercialisation of emerging low-carbon technologies. This funding will support the Agency for Science, Technology, and Research (A*Star) in launching the ‘Low-Carbon Technology Translational Testbed.’ The facility will provide a platform for testing and refining innovations in areas such as carbon utilisation and hydrogen energy, helping to bridge the gap between research and market-ready solutions.
As Singapore navigates the challenges of decarbonisation, its dual approach—leveraging carbon markets and investing in next-generation clean technologies—underscores its commitment to sustainable economic growth and long-term climate goals.
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Singapore’s commitment to carbon trading and clean technology signals a growing global shift toward credible, high-impact environmental solutions. At DGB Group, we’re driving this transition with large-scale, nature-based projects that generate high-quality carbon units while restoring ecosystems and supporting local communities. As businesses navigate new carbon regulations and investment opportunities, partnering with trusted carbon project developers is key to making a real impact. Explore how DGB’s solutions can strengthen your sustainability strategy today.
