Singapore invests in sustainability innovations and capabilities
Singapore is strengthening its bioeconomy sector with the launch of the S$118 million Bioeconomy Funding Initiative, the largest funding initiative dedicated to developing the sector in Singapore to date. Launched under the Research, Innovation and Enterprise (RIE) 2030 Plan, the initiative contributes to a cumulative commitment of approximately S$200 million to support bioeconomy-related initiatives over the next five years.
The initiative will support industry-aligned research into bio-based alternatives to petroleum-derived raw materials, including converting agricultural by-products into valuable resources, engineering microbes and enzymes, and improving production efficiency. Led by the Agency for Science, Technology and Research (A*STAR)'s newly established Bioeconomy Innovation Office, with the Singapore Economic Development Board (EDB) driving industry engagement, the initiative aims to translate research into commercially viable solutions, creating new growth opportunities in specialty chemicals and advanced materials.
Separately, German testing and certification group TÜV SÜD has launched a S$30 million Global Decarbonisation Centre of Excellence in Singapore, supported by EDB. The centre will provide expertise in carbon markets, climate assurance, energy transition, and industrial decarbonisation, including support for the implementation of Article 6 of the Paris Agreement. The investment strengthens Singapore's capabilities in carbon emissions reporting and verification, supporting businesses as they navigate the low-carbon transition.
Strengthening Singapore's energy infrastructure
Tuas Power has been awarded a tender by the Energy Market Authority (EMA) to build, own and operate a 670-megawatt (MW) hydrogen-ready Combined Cycle Gas Turbine (CCGT) plant, expected to commence commercial operations by December 2031. The new plant will expand Singapore's power generation capacity to meet growing electricity demand from industrial growth in sectors like semiconductors, data centres and transport electrification. It will also strengthen energy security while providing flexibility for Singapore’s longer-term transition to low-carbon energy.
Advancing cross-border carbon markets
Singapore and Laos signed an Implementation Agreement on carbon credits under Article 6 of the Paris Agreement in September 2026, marking Singapore's 12th such agreement and fourth with an ASEAN member state. The agreement establishes a framework for developing and transferring high-quality carbon credits between both countries, creating new opportunities for carbon project developers and businesses. It also aims to channel financing towards emissions reduction projects in Laos, while supporting both countries' climate goals and local sustainable development.
Business step up investments and adoption of sustainability practices
Nearly all (94%) of the 513 professionals surveyed from Singapore Exchange-listed companies expect their organisations to increase energy and sustainability investments over the next 12 months, according to Schneider Electric's Powering the Future: Singapore Energy Resilience Report. Of those surveyed, 38% anticipate investment increases of more than 20%, reflecting growing business focus on energy resilience and decarbonisation.
Alongside this growing investment momentum, efforts are underway to help small and medium-sized enterprises (SMEs) translate sustainability goals into practical business action. Through the DBS ESG Ready Programme, DBS and Enterprise Singapore are supporting businesses with training, carbon assessments, strategy development and access to sustainable financing. Among the graduates, home-grown cleaning products manufacturer Freshening Industries adopted solar panels, fleet electrification and automation enhancements to reduce energy use and emissions, while hospitality and property group Amara Holdings is advancing initiatives expected to cut nearly 20,000 tonnes of carbon emissions over 15 years. Since the programme's launch in April 2024, more than 160 businesses have joined the programme, with 73 completing it to date.
Complementing these efforts, the Accounting and Corporate Regulatory Authority (ACRA) has proposed the Singapore Sustainability Disclosure Standards (SSDS) to provide businesses with clearer guidance on sustainability reporting requirements. Based on the International Sustainability Standards Board (ISSB) framework, the proposed standards adopt a climate-first approach, making climate-related disclosures under S2 mandatory for companies subject to the reporting requirements, while broader sustainability disclosures under S1 remain voluntary. To support implementation, ACRA is also developing a sustainability assurance guidebook to strengthen industry capabilities and support the development of relevant training programmes.
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