Here is a round-up of key developments and what they mean for businesses.
1. Singapore advances carbon market innovation and financing through the Blue Catalyst challenge and new Carbon Project Development Grant awards
EDB awarded the Carbon Project Development Grant to two new recipients, Value Network Ventures (VNV) and Anew Climate. With the grant, VNV plans to expand its Singapore team and explore projects in agroforestry and blue carbon, with feasibility trials to be conducted in countries with carbon trading pacts with Singapore, including the Philippines, Vietnam and Rwanda. This brings the total number of grant recipients to five. The grant supports Singapore-based carbon project developers undertaking early-stage feasibility studies for high-quality Article 6 carbon credit projects.
EDB also supported the Blue Catalyst open innovation challenge, organised by the World Wide Fund for Nature (WWF) Singapore and Hatch Blue, to showcase technologies aimed at scaling high-integrity blue carbon projects across Asia and beyond. Out of the 130 applications from 37 countries, 10 finalist companies were selected to participate in a two-week accelerator programme hosted in Singapore. Their solutions will then be assessed by WWF to be further developed under the Blue Carbon Support Programme, and CANOPY, which unlock finance for nature restoration projects.
At the Blue Catalyst Demo Day, six companies were further selected from the 10 finalists based on their solutions’ technological potential, business traction and feasibility to scale. These companies presented their solutions to blue carbon investors, project developers and other partners, providing them opportunities to secure potential capital, partnerships and market access needed to scale their solutions.
2. Singapore and the Philippines sign an Implementation Agreement on carbon credits collaboration
Singapore has signed a carbon credit implementation agreement with the Philippines, making it Singapore’s third Southeast Asian partner in carbon trading (after Thailand and Vietnam) and its 11th such agreement globally. The legally binding pact, signed on 30 April during ASEAN Climate Week in Manila, allows the Singapore Government and carbon tax-liable companies in Singapore to purchase eligible carbon credits from projects in the Philippines.
3. Singapore's blended finance climate initiative secures over S$1 billion for green projects in Asia
Singapore’s national blended finance initiative, the Financing Asia’s Transition Partnership (FAST-P), has secured its second funding close, growing its coffers to S$1.02 billion (US$800 million). Announced at Ecosperity, the capital will be directed at renewable energy, battery storage, green buildings, electric vehicles, and water and waste management projects across Asia.
FAST-P brings together public, private and philanthropic capital, helping to unlock sustainable infrastructure investments while attracting commercial participation. One of the funds under the FAST-P, the Energy Transition Acceleration Finance (ETAF) partnership, has secured S$440 million (US$345 million), including concessional capital from Temasek, to support bankable energy transition infrastructure in the region.
4. New industry-led coalition launched to mobilise demand and financing for high-integrity voluntary carbon credits
The Action for a Resilient Climate (ARC) Coalition brings together corporates and institutional players and technical experts to improve market integrity, strengthen practices, and give companies greater confidence in purchasing high-integrity carbon credits. The coalition will aggregate demand for high-integrity voluntary carbon credits from Asia and channel financing towards projects that generate them. It will also develop a financing facility for early-stage, high-quality carbon projects and develop world-class standards for carbon credit assessment. The overall intent is to improve access to carbon credits and strengthen the credibility of carbon markets.
5. Singapore pledges S$19.2m to global facility to spur carbon trading
Singapore will contribute S$19.2 million (US$15 million) to the Global Green Growth Institute’s Carbon Transaction Facility – the first Asian country to support the intergovernmental organisation’s facility, which funds UN-standard carbon projects. Announced at the GenZero Climate Summit, S$12.82 million (US$10 million) will finance carbon credit projects for Singapore’s climate goals, while the remainder will support other countries in capacity building to participate in carbon markets. Minister of State for Trade and Industry Alvin Tan described carbon markets as playing an “indispensable role” in reducing greenhouse gas emissions and channelling finance to high-impact projects, especially given Singapore’s limited clean energy options.
6. World’s largest nuclear fusion firm partners with A*STAR to develop commercial power plant tech
Singapore is building capabilities in fusion energy through a five-year partnership between A*STAR and Commonwealth Fusion Systems (CFS), the world’s largest commercial fusion energy firm. Signed at Temasek’s Ecosperity conference, tThe collaboration aims to develop technologies for commercial fusion power plants, positioning Singapore as an early entrant in the global fusion energy supply chain. A*STAR will participate in the commercialisation process behind the company’s ARC (affordable, robust, compact) fusion reactor, which is expected to supply electricity at a commercial scale by the early 2030s, contributing its expertise in advanced materials, precision manufacturing and materials testing. The partnership builds on earlier work between A*STAR, CFS and ST Engineering on the SPARC demonstration device.
7. Grid reforms vital to powering ASEAN’s green growth: Bain & Company and Standard Chartered
Southeast Asia’s green growth is increasingly constrained by outdated and underfunded power grids, even as investor interest rises in data centres, renewable energy, green industrial parks and electric vehicle infrastructure.
This year’s Southeast Asia Green Economy report by Bain & Company and Standard Chartered estimates that the region should be investing US$29 billion a year in grid infrastructure, but is currently spending only US$11 billion, leaving an US$18 billion annual gap. Another significant gap remains between investments announced and what is likely to be built.
The report argues that addressing the systemic issues could unlock US$70 billion in additional clean energy investments. Priority actions include faster grid interconnections, expanded solar and battery storage, private participation in transmission and distribution, and stronger regional power markets under the ASEAN Power Grid.
8. AI use in climate, sustainability could unlock US$600 billion in annual value: Temasek, BCG
Artificial intelligence is opening new opportunities to improve sustainability outcomes across industries. A report by Temasek and Boston Consulting Group estimates that deploying today's AI capabilities across climate and sustainability applications could unlock approximately S$770 billion in annual global value through improved efficiency, lower operating costs and new commercial opportunities.
The report identified opportunities across industrial systems, electricity grids, climate risk modelling and materials discovery, highlighting how AI can help businesses improve operational performance while supporting innovation in areas such as battery technologies, carbon capture and energy management.
9. Recommended reads:
From Constraints to Cooperation: Singapore and Southeast Asia’s Energy Transition
Southeast Asia has strong renewable energy potential but is held back by fragmented grids, limited cross-border interconnections and high costs, as well as a gap in renewables investment. Singapore is closing this gap through various national and regional initiatives. Find out the details from this article, written in partnership with the UNDP Global Centre for Technology, Innovation, and Sustainable Development.
Southeast Asia is emerging as a material source of nature-based carbon credits, supported by rich natural ecosystems, growing regulatory clarity and an expanding project pipeline. As demand signals rise and project types diversify, the region offers a wide range of opportunities in reforestation, restoration, project development, MRV and advisory services for buyers with varying portfolio needs. Read carbon consultancy Hamerkop’s full article on why Singapore is a natural base for companies looking to capture these opportunities.
Southeast Asia’s carbon certification landscape is becoming more operational, creating new demand for advisory and technical services across the carbon value chain. Hamerkop analysed 13 international nature-based solutions standards across Indonesia, Malaysia, Thailand, Cambodia and the Philippines to reveal the key trends across the landscape. Click on the link above for the full analysis and learn how Singapore is well-positioned as a hub for these services.
Watch: Alvin Lim, CEO of Climate Bridge International, a recipient of EDB’s Carbon Project Development Grant, on decarbonisation opportunities and how Singapore is the ideal location for its international operations in methane reduction, refrigerant destruction and e-mobility carbon projects.
