- Singapore to procure 2.175 million tonnes of Article 6-compliant carbon credits valued at S$76 million ($56 million).
- Four nature-based projects selected: REDD+ in Peru, grassland restoration in Paraguay, and reforestation in Ghana.
- Part of Singapore’s strategy to meet 2030 NDC and long-term net zero target by 2050 under Paris Agreement.
Singapore turns to global carbon markets
The Singapore government will purchase 2.175 million tonnes of nature-based carbon credits from projects in Ghana, Peru, and Paraguay, marking one of its largest commitments to international offsets to date. The credits, valued at about S$76 million ($56 million), were awarded through a request for proposal (RFP) process launched in September 2024.
The move reflects Singapore’s reliance on international carbon markets to complement domestic decarbonisation, as the city-state works toward reducing emissions to 60 million tonnes of CO₂-equivalent by 2030 and achieving net zero by 2050.
Article 6 as a complementary pathway
As one of the most densely populated nations with limited natural resources, Singapore faces unique constraints in cutting emissions at home. While it has introduced a carbon tax, scaled up solar deployment, and pursued renewable energy imports and carbon capture and storage, officials argue that offsets under Article 6 of the Paris Agreement are essential to close the gap.
The credits will be authorised by host governments and recognised under bilateral implementation agreements, ensuring that the reductions are not double-counted. To date, Singapore has signed nine such agreements with countries including Ghana, Peru, Paraguay, and Vietnam. Each agreement requires 5% of the proceeds from authorised credits to support local climate adaptation measures.
A second procurement round for Article 6-compliant credits is expected later this year, widening the pipeline of potential projects.
Four projects selected
The contracts awarded cover a range of ecosystems and restoration approaches:
- Peru: Two REDD+ initiatives — Kowen Antami and Together for Forests — designed to prevent deforestation and protect biodiversity.
- Paraguay: The Boomitra Grassland Restoration Project, which enhances soil carbon sequestration through sustainable grazing practices.
- Ghana: The Kwahu Landscape Restoration Project, focused on reforesting degraded pastureland and restoring local ecosystems.
Combined, these projects are expected to deliver verified emissions reductions equivalent to 2.175 million tonnes of CO₂ between 2026 and 2030. Beyond carbon accounting, they promise co-benefits such as improved water quality, biodiversity protection, and new income streams for rural communities.
A test for quality in carbon markets
Nature-based solutions are often cited as one of the most scalable and cost-effective tools for carbon removal, with global potential estimated at more than 10 gigatonnes annually. Yet questions over permanence, leakage, and additionality have dogged the voluntary carbon market in recent years.
Singapore’s selection process sought to mitigate these concerns, prioritising environmental integrity and the capacity of project developers to deliver on commitments. The government assessed proposals based on additionality, permanence, co-benefits, and price competitiveness, as well as the track record of the tenderers.
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Building a carbon hub in Asia
Beyond domestic climate targets, the move is also designed to cement Singapore’s position as a regional hub for carbon services. The city already hosts around 150 firms in trading, advisory, project development, and verification, with officials keen to expand opportunities for Singapore-based companies in the fast-growing carbon markets sector.
“Article 6 carbon credits can catalyse green growth opportunities,” the National Climate Change Secretariat said in a statement, adding that the country would continue to facilitate industry participation in global carbon markets.
Global relevance
For policymakers and investors, Singapore’s strategy highlights both the promise and challenges of integrating international offsets into national climate plans. As Article 6 frameworks begin to take shape, the country’s contracts could set precedents for governance standards, financial structuring, and adaptation funding flows.
With its limited land area, Singapore is unlikely ever to generate significant nature-based credits domestically. Instead, its approach illustrates how smaller economies may rely on structured cross-border partnerships to align national pledges with global climate goals.
The test ahead will be whether these projects — and the frameworks governing them — deliver real, verifiable climate benefits that extend beyond carbon metrics to the people and ecosystems on the ground.
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