Singapore Advances Climate Strategy with Nature-Based Carbon Credit Procurement

Singapore is taking significant strides toward its 2030 climate objectives by initiating the procurement of high-quality, nature-based carbon credits. This move aligns with the nation’s commitment to reduce emissions to approximately 60 million metric tons of CO₂ equivalent by 2030.

In September 2024, the Prime Minister’s Office issued a Request for Proposal (RFP) seeking at least 500,000 metric tons of nature-based carbon credits. The tender attracted 17 suppliers, with price offers ranging from $19 to $41 per metric ton of CO₂ equivalent. Notable participants included Trafigura, Mercuria, Shell, and PetroChina. The evaluation criteria emphasized not only price competitiveness but also project quality, supplier experience, and implementation capabilities.

This initiative positions Singapore as an early adopter of government-led Article 6 transactions under the Paris Agreement, potentially setting a benchmark for the emerging global carbon market. The nation’s proactive approach underscores its ambition to become a hub for carbon markets and to establish standards for nature-based solutions.

Complementing these efforts, global environmental non-profit The Nature Conservancy (TNC) has established a presence in Singapore. TNC aims to enhance the supply of high-quality carbon credits in Southeast Asia and unlock more conservation projects in the region. This development bolsters Singapore’s aspirations of becoming a green finance hub.

Furthermore, Singapore’s President Tharman Shanmugaratnam highlighted the importance of integrating biodiversity and water outcomes into carbon credit markets at the World Economic Forum in Davos. This approach addresses the interconnected challenges of global warming, biodiversity loss, and water scarcity, reflecting Singapore’s holistic strategy toward environmental sustainability.

Singapore is also enhancing its domestic carbon market infrastructure. Under the leadership of Michelle Tan, Vice President of Environmental Sustainability at the Singapore Economic Development Board (EDB), the country launched the Carbon Market Alliance in July 2024. This initiative aims to connect carbon credit suppliers with local companies committed to achieving their climate goals. Furthermore, in October 2024, Singapore introduced the Singapore Emission Factors Registry, a database designed to help businesses accurately track their greenhouse gas emissions.

By actively engaging in the carbon credit market and fostering international collaborations, Singapore demonstrates a comprehensive commitment to achieving its climate targets and promoting sustainable development.

This article is based on information from The Straits Times and other reputable sources.