Regulation
March 10, 2025
Singapore official Tan See Leng recently stated that Singapore has signed carbon credit agreements with Papua New Guinea, Ghana, and Bhutan for Internationally Transferred Mitigation Outcomes (ITMOs) under the Paris Agreement. (Photo: Tan See Leng’s Facebook)
Singapore, highly dependent on imported natural gas, lacks alternative energy sources and has to actively sign carbon credit transfer agreements with other countries. It is expected that these agreements will be implemented this year, with Singapore purchasing its first batch of compliant carbon credits.
Additionally, the Singaporean government will invest SGD 62.5 million (about USD 46 million) to establish a commercialization platform for low-carbon technologies.
Singapore signs carbon agreements with 3 countries
In a recent budget review session, Singapore’s Minister for Manpower and Second Minister for Trade and Industry, Tan See Leng, announced that Singapore has signed carbon credit transfer agreements with three countries to fulfill its Nationally Determined Contributions (NDCs) under the Paris Agreement. Bhutan is the latest country to complete the agreement, following Papua New Guinea and Ghana.
Under Article 6 of the Paris Agreement, countries can establish bilateral or multilateral agreements to transfer carbon reduction results to meet their NDCs, ensuring that the carbon credits acquired through such transfers comply with regulations and that their environmental benefits are not counted a second time.
Although the Singaporean government has actively signed carbon agreements, no transactions have been carried out yet. Tan See Leng mentioned that the agreements are expected to be implemented as early as 2025, with the proposal to purchase the first batch of carbon credits compliant with the Paris Agreement. However, no specific timeline for the offsetting has been provided.
Singapore’s government estimates that its carbon emissions will reach 62.21 million tons by 2025. If carbon credits are used to offset emissions, this could be reduced to 59.7 million tons. According to the most recent NDC submission in February, Singapore expects that after using carbon credits, emissions in 2035 could be reduced to between 45 and 50 million tons.
Singapore will partially offset its carbon emissions through carbon credits to achieve its net-zero target by 2050. (Photo: iStock)
Singapore evaluates nuclear technology, establishes low-carbon testbed
In addition to purchasing carbon credits, Singapore is exploring other methods of carbon reduction, particularly in the decarbonization of electricity. Tan See Leng emphasized that the current solar capacity and low-carbon energy imports are insufficient for Singapore to achieve net-zero emissions. Therefore, the government is evaluating the feasibility of advanced nuclear technology through academic research and international collaboration.
Furthermore, he mentioned that the government will invest SGD 62.5 million to support the Agency for Science, Technology, and Research (A*Star) in establishing a “Low-Carbon Technology Translational Testbed.” This platform will provide a testing facility for immature low-carbon solutions, helping them evolve into commercially viable products that can be accepted in the market.
According to A*Star’s statement, the new facility will focus on emerging low-carbon technologies such as carbon utilization and hydrogen energy. It will offer the resources needed for technology enhancement and validation, aiming to shorten development timelines and processes, with the goal of scaling up for commercial application.
Source: The Straits Times, Business Times, MTI
