At COP29, Singapore launched a new initiative to support leading companies in generating high-quality Article 6 carbon credits. This came after Singapore International Energy Week (SIEW), where updates were provided on the initiatives and measures that Singapore is taking to enable the energy transition.
1. COP29: EDB launches grant to support early-stage carbon projects
At COP29 in Azerbaijan, EDB introduced a new grant to support early-stage carbon projects, filling critical early-stage financing gaps and promoting regional projects like forestry conservation and blue carbon removal. Targeting established carbon project developers, the grant provides financial backing for feasibility activities such as carbon stock assessments, project scenario development, and local stakeholder engagement.
To qualify, projects must align with Singapore’s International Carbon Credit Framework and Article 6 of the Paris Agreement, ensuring credits are counted only by the purchasing country. EDB Managing Director Jacqueline Poh noted that this grant is a strategic step to boost Singapore's carbon services and trading sector, tapping into Southeast Asia (SEA)’s potential for generating high-quality carbon credits, which can help address the decarbonisation needs of hard-to-abate industries.
2. NTU Academy to help professionals navigate the world of carbon trading
The Carbon Markets Academy of Singapore (CMAS), supported by Enterprise Singapore and EDB, will train 300 sustainability professionals by 2027, teaching them to navigate carbon markets, develop carbon projects and measure and report carbon emissions, among other skills. Launched in November 2024, CMAS will offer postgraduate courses, including a nine-day Executive Certificate in Carbon Markets, to equip business leaders with a foundation in carbon markets. It is open for enrolment now.
3. Singapore pledges up to S$669 million to finance climate action in Asia
At COP29, Singapore also pledged up to US$500 million (S$669 million) in concessional funding for Asia’s green transition, matching capital from governments, banks, and philanthropic institutions to reduce investor risks in green projects. This funding is central to Financing Asia’s Transition Partnership (FAST-P), the national blended finance initiative, launched by the Monetary Authority of Singapore at COP28. FAST-P aims to attract up to US$5 billion (S$6.6 billion) for projects like coal phase-out, grid upgrades, and industrial decarbonisation, which lack private capital due to high upfront costs. Key partners include Clifford Capital, Pentagreen Capital, and BlackRock, and the first investments are expected by the next COP.
Separately, a report by the International Energy Agency (IEA) found that Southeast Asia must increase clean energy investments five-fold to US$190 billion (S$250 billion) 2035 to meet climate goals. Currently, clean energy can only meet a third of the region’s growing electricity demand, while emissions are expected to grow by 35 per cent by mid-century. The region accounts for six per cent of global GDP and nine per cent of the world's population, but receives only two per cent of global clean energy investment. Expanding and modernising its power grids to further support renewable energy will require annual investment to double to nearly US$30 billion (S$9 billion) by 2035.
4. Updates from the annual Singapore International Energy Week (SIEW)
- Singapore launches grant call to study carbon capture and storage methods
The Energy Market Authority (EMA) announced a grant call to study two carbon capture and storage (CCS) technologies: one capturing carbon dioxide (CO2) from exhaust gases on-site, and another from hydrogen production. This is part of Singapore's effort to reduce emissions from natural gas power plants, which will still supply over 50 per cent of its energy by 2035. Generation companies hoping to participate must have done a pre-feasibility study for either post- or pre-combustion carbon capture at their power plants. The deadline for proposals is 31 January 2025. Singapore is simultaneously developing a CCS project to collate CO2 emissions on Jurong Island for overseas storage, with the first phase aiming to begin at around 2030. It hopes to collaborate with Indonesia for CO2 storage. - Singapore seeks proposals on regulatory sandbox for virtual power plants
EMA has also proposed a regulatory sandbox to test the feasibility of virtual power plants supplying electricity to the grid. It is also developing a 15-megawatt virtual power plant with SP Group to participate in the sandbox. The virtual power plant is a digital platform that aggregates disparate small-scale energy systems such as solar panels, battery-energy storage systems, or electric vehicle chargers, to operate as a single power generator. Interested businesses should submit their proposals by the end of 2024. - Perks for more Singapore businesses to reduce electricity use during peak periods
EMA announced an expansion of its Demand Response programme, giving more businesses rewards and savings for reducing electricity use during peak periods. Adjusting electricity demand in response to peaks helps to ease grid stress, which is important as Singapore shifts towards greener energy sources such as solar and electricity imports, which can be intermittent. Between 2023 to mid-2024, the programme has saved electricity buyers over S$700 million. Eligible businesses include commercial and industrial firms that buy their electricity from a retailer or wholesale electricity market, which pledge to reduce their electricity consumption by at least 0.1 MW and respond to peak demand prompts within three minutes. They will save up to S$4,500 per MWh of consumption, but face penalties if they deliver below 80 per cent of energy savings committed
5. Zambia carbon credit deal
Singapore and Zambia signed a Memorandum of Understanding at COP29 to foster carbon trading and developing sustainable projects in Zambia, and work towards an implementation agreement, which is a legally binding carbon credit transfer agreement aligned with Article 6.2 of the Paris Agreement. The MOU will facilitate the exchange of best practices and knowledge on carbon credit mechanisms, and joint identification and development of potential Article 6-compliant carbon mitigation projects. Singapore currently has signed implementation agreements with Papua New Guinea and Ghana.
6. Electricity import updates
- Singapore to import low-carbon electricity from Australia’s mega solar project
EMA has granted Australian project developer SunCable conditional approval for its mega solar project in Australia’s Northern Territory to supply 1.75 gigawatts (GW) of low-carbon electricity to Singapore via a 4,200 km subsea cable. The project is expected to reduce 6 million tonnes of CO2 equivalent annually and to provide nine per cent of Singapore’s electricity needs by 2035. At this scale, the project is able to provide a constant supply of electricity. SunCable hopes to begin construction of the solar farm, battery energy storage systems, and subsea cables sometime in 2027. - Malaysia begins first green electricity transmission with a capacity of 50 megawatts to Singapore
Malaysia announced that it would begin transmitting 50 megawatts of green electricity to Singapore on 13 December, as part of a power agreement between Tenaga Nasional Berhad (TNB) and Sembcorp Power. Under the agreement, TNB will supply a total of 300 megawatts of green power to Singapore in phases through the existing interconnector. This initiative is part of Malaysia's plan to promote its energy vision by fostering regional electricity supply integration through the ASEAN Power Grid, through which it intends to sell renewable energy across borders. This agreement is Singapore's first official import of clean energy with Renewable Energy Certificates, and is separate from the Laos-Thailand-Malaysia-Singapore Power Integration Project, under which Singapore is also currently importing 100 MW of renewable hydropower from Laos.
7. Singapore’s greenhouse gas emission projections
In its first biennial transparency report submitted at COP29, Singapore projected that its greenhouse gas emissions would peak at 64.43 million tonnes (Mt) in 2028 before dipping to about 60 Mt in 2030. This is the first time Singapore has detailed an emissions timeline, aligning with its Paris Agreement commitment to lower emissions to about 60 Mt by 2030. These projections are based on the use of both carbon credits to offset emissions and efforts taken to reduce emissions in different sectors. However, there remains some uncertainty on international carbon credit policies, which Singapore would need to safeguard against.
8. Check out our original content pieces:
Boosting climate action
This infographic highlights three key climate policies Singapore implemented in 2024 to accelerate our climate action.
