More Funding, Talent Schemes for Singapore Carbon Services Industry

EDB grant gets $20m to help local firms developing carbon projects and credits

- Shabana Begum

Despite the economic uncertainties caused by US tariffs and other geopolitical developments, Singapore's burgeoning carbon services sector is pushing ahead for growth by capturing more funds and building talent.

At the GenZero Climate Summit Insights on May 5, Manpower Minister and Second Minister for Trade and Industry Tan See Leng announced a slew of efforts to boost this sector, so that carbon trading remains a key tool to help Singapore grow its economy and reduce its greenhouse gas emissions.

For one thing, a recently formed grant by the Economic Development Board (EDB) has received an injection of $20 million.

The Carbon Project Development Grant supports local companies in their early stages of developing high-quality carbon projects and credits.

The grant—which has an undisclosed total amount—will help recipient companies address critical funding gaps that early-stage carbon projects face, such as in carrying out feasibility studies and securing long-term buyers of their credits.

The $20 million came from a new fund that seeks to attract financing from family offices and philanthropic foundations towards carbon projects. This new donor-advised fund was launched on May 5 by the EDB and Temasek Trust's philanthropy advisory arm.

There are two main types of carbon credits—nature-based and technological, such as replacing firewood stoves with cleaner cookstoves. Nature-based credits could come from projects such as forest restoration and conservation.

Under the Paris Agreement, countries can buy carbon credits generated in other nations to meet domestic climate targets. Singapore had earlier estimated that it would use high-quality carbon credits to offset about 2.5 million tonnes of emissions a year from 2021 to 2030.

Credits used to offset national emissions can be purchased only from carbon projects in countries that have bilateral pacts with Singapore. The Republic has not yet purchased such offsets.