Singapore is set to begin purchasing carbon credits to help offset its greenhouse gas emissions, with the Ministry of Trade and Industry (MTI) preparing to launch a request for proposal (RFP) later in 2025. This initiative is part of Singapore’s broader strategy to achieve its climate targets and progress toward net zero emissions by 2050. The RFP will seek eligible carbon credits that comply with Article 6 of the Paris Agreement, ensuring that credits are high-quality, verifiable, and not double-counted between countries.
The country has already signed carbon credit transfer agreements with Bhutan, Papua New Guinea, and Ghana, enabling Singapore to buy internationally transferred mitigation outcomes (ITMOs) from projects such as rainforest restoration and conservation. These credits will be used to help Singapore meet its Nationally Determined Contributions (NDCs) and reduce its projected 2025 emissions, supporting its commitment to international climate action.
In addition to purchasing carbon offsets, Singapore will invest SGD 62.5 million (about USD 46 million) to develop a test-bedding facility for less mature low-carbon solutions, such as carbon utilization and hydrogen. This facility will help companies scale up promising technologies closer to commercial deployment, further supporting the nation’s decarbonization efforts.
Overall, the RFP for carbon offsets represents a significant step in Singapore’s climate policy, diversifying its decarbonization pathways and reinforcing its role in the global carbon market.
(Source: EDB Singapore)
