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Supporting a global net zero future from Singapore
The global race to decarbonise is more urgent than ever. Asia, particularly Southeast Asia (SEA), is emerging as a critical player in the world’s efforts to achieve net zero targets.
As a key regional node for professional services, trading, and financial services, Singapore is leveraging its strengths in these areas to support corporates and governments in Asia to transit to a low-carbon future.
Singapore will also play a global role in unlocking high integrity global carbon markets through research and shaping international initiatives, such as the Climate Action Data Trust.
As the region grows to be one of the world’s largest economies by 2050, it demands more innovation and sustainable practices to reduce carbon emissions effectively.
8 of 10
SEA countries have committed to climate targets(i)
4x
number of SEA companies committing to science-based targets between 2021 and 2022(ii)
7 of 10
SEA countries are considering or implementing carbon pricing(iii)
US$15 billion
in cumulative private sector investments in SEA’s green economy since 2020(iv)
US$1 trillion
potential annual economic opportunity by 2030(v)
20%
of the world’s biodiversity lies in SEA, rich in carbon sinks like peatlands and mangroves(vi)
>90%
of the world’s necessary reductions in energy-related carbon emissions can be achieved through renewables and energy efficiency(vii)
Sources: (i, iii, vi) Bain & Company, Temasek, GenZero, and Amazon Web Services, Southeast Asia’s Green Economy 2022 Report; (ii, iv, v) Bain & Company and Temasek, Southeast Asia’s Green Economy 2023 Report; (vii) IRENA, “How to Transform Energy Systems and Reduce Carbon Emissions”. Accessed 16 August 2023
Download 'Serving demand opportunities in Asia for carbon services & trading firms' Report
Optimal business conditions
Attractive demand conditions
A growing partnership ecosystem
A fast-growing pipeline of green talent
Stable and supportive business-friendly environment
Singapore continues to be a top partner for companies from global MNCs to fast-growing startups. More than 100 carbon services and trading firms are already here, leveraging our pro-business policies to set up and scale quickly and efficiently.
Companies can rely on our future-ready business infrastructure, as well as our trusted legal system and political stability. Being in Singapore gives you access to clear regulatory processes, a transparent tax regime, and a variety of business support schemes to help your company grow.
Connectivity to Southeast Asia
Singapore’s strategic location – within a six-hour radius of any SEA country – can help your business quickly access the region’s growing demand and business opportunities, as well as rich nature-based solutions. Already, we host nearly 50 per cent of Asia’s regional headquarters, with many interested in decarbonising.
As a multicultural and diverse region, SEA may present cultural and language barriers. With our longstanding network of partnerships and cross-border collaborations, Singapore is the ideal partner for companies looking to navigate regional markets and connect with stakeholders.
Regional demand opportunities
With most SEA countries committed to targets to decarbonise, this presents many opportunities for carbon services and trading firms. More R&D, technology, and expertise is needed in the region as half of SEA countries reports facing significant limitations to decarbonisation.
SEA is also uniquely rich in carbon sinks, endowed with almost a quarter of the world’s nature-based solution supply and the highest stock of blue carbon. This makes the region high in potential for carbon abatement project opportunities such as project development, financing and measurement, as well as reporting and verification.
Why you should join Singapore’s vibrant carbon services and trading ecosystem
Local demand opportunities
Singapore has introduced a suite of climate measures to support the nation’s journey towards a low-carbon economy.
As the first country in SEA to price carbon, Singapore introduced a carbon tax rate of S$5 per tonne of carbon dioxide equivalent (tCO2e) in 2019. This will gradually gradually increase to S$50 to S$80 per tCO2e by 2030.
Source: National Climate Change Secretariat Singapore
To ease this transition, Singapore will allow companies to purchase high-quality international carbon credits to offset up to five per cent of their taxable carbon emissions from 2024.
With carbon pricing and offsets to nudge companies into reducing their carbon footprint, it creates a demand in expertise for carbon accounting, setting low-carbon strategies, and services to finance and trade carbon credits.
Sustainability reporting is now also required under the Singapore Exchange’s regulations, as recommended by the Task Force on Climate-related Financial Disclosures. Companies will need to turn to experts who can help them measure, assess, and report the environmental impact of their business.
These measures will contribute to opportunities to help companies meet compliance obligations, which in turn drives investment opportunities in decarbonisation solutions.
Learn why Singapore is a key regional player in carbon services through this report
Connect with carbon services firms
Over 100 carbon services and trading firms across the value chain are in our fast-growing ecosystem to date. As a global commercial hub, Singapore brings together the best companies in the carbon services industry and makes it easy for businesses to meet, connect, and share ideas.
Create with innovation partners
Innovation is necessary to catalyse solutions to solve the world’s climate crisis. Singapore’s ecosystem of innovation platforms and partners across climate funds, accelerator programmes, and startups has been growing rapidly.
Some notable initiatives launched in 2023 include:
Collaborate with research institutes
To unlock the sequestration and biodiversity potential of natural ecosystem, Singapore is focusing on improving the science and technology for nature-based solutions. We are home to research institutions and international organisations that carbon services firms can work with to catalyse nature-based solutions through improved methodologies and new technologies.
For example, the National University of Singapore’s (NUS) Centre for Nature-based Climate Solutions collaborates frequently with industry experts to unlock the sequestration potential of natural ecosystems in SEA.
Strong commitment to growing the local sustainability pool
Universities in Singapore, such as the National University of Singapore and Nanyang Technological University, have introduced new sustainability courses and education pathways to cater to growing demand for talent in the industry.
Government-backed upskilling initiatives also help jobseekers and professionals from other industries to develop skills and transition into carbon services. This includes the Career Conversion Programme for Sustainability Professionals or Capability Transfer Programme by Workforce Singapore.
An attractive destination for a global workforce
Singapore’s reputation as a great place to live has made us highly attractive to global talent and companies. To expand our world-class talent pool, applicants who complement in-demand roles will get bonus points to qualify for an Employment Pass – bringing in more people as carbon traders, carbon analysts, and specialists.
Read more on how Singapore is drawing in talent for our carbon services sector
Learn how companies from all over the world have tapped on regional opportunities from Singapore.
