The Singapore government has announced an investment of S$62.5 million to accelerate the development of low-carbon technologies, as part of its national strategy to reach net zero emissions by 2050 and establish itself as a regional hub for high-quality carbon markets.
The funding will be channeled through the Agency for Science, Technology and Research (A*STAR) to support innovation in key areas such as carbon capture and utilisation (CCU) and clean hydrogen, both seen as critical enablers for decarbonisation in hard-to-abate sectors.
This initiative complements Singapore’s wider efforts to build a credible carbon trading ecosystem and aligns with its upcoming Request for Proposal (RFP) to purchase internationally transferred mitigation outcomes (ITMOs) commonly known as carbon credits under Article 6 of the Paris Agreement.
The country has already signed bilateral agreements with Bhutan, Papua New Guinea, Ghana, and most recently, Peru, to source verified carbon offsets that meet global standards.
According to the Singapore Economic Development Board (EDB), the S$62.5 million investment aims to bridge the gap between early-stage innovation and commercial deployment, enabling local enterprises and researchers to bring scalable, carbon-reducing solutions to market.
The move also provides a boost for carbon project developers, technology startups, and clean energy firms seeking to play a role in Singapore’s growing green economy.
With regulated emitters in Singapore allowed to offset up to 5% of their taxable emissions using international credits, the demand for high-integrity offsets and enabling technology is expected to grow significantly.
This strategic investment signals Singapore’s commitment to not just reducing its own emissions, but also catalysing innovation and regional collaboration in the emerging green tech and carbon services sectors.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
