S'pore Looking to Buy Its First Set of Nature-Based Carbon Offsets

Request for proposal draws 17 submissions, which the Government is now evaluating

- Shabana Begum

The Republic is looking to buy its first set of nature-based carbon offsets to meet its 2030 climate change target, a move that observers say could help further efforts to conserve the planet's remaining natural ecosystems amid global biodiversity decline.

This request for proposal—the first for credits here—drew 17 submissions before it closed in mid-February, and the Government is currently evaluating the proposals.

The Government had in September 2024 called on carbon project developers and credit suppliers to propose nature-based projects that can deliver at least 500,000 credits each.

One carbon credit represents one tonne of carbon dioxide that is either removed from the atmosphere, such as through a restoration effort, or prevented from being released, such as when a forest is saved from the axe.

This amount is equivalent to offsetting about 0.85 per cent of Singapore's greenhouse gas emissions in 2022.

Singapore had earlier estimated that it would use high-quality carbon credits to offset about 2.51 million tonnes of emissions per year over this decade.

For example, in 2030, the country's total greenhouse gas emissions are expected to be 62.51 million tonnes, and will be brought down to 60 million tonnes with the use of carbon credits.

Carbon credits can come from technological solutions, such as carbon capture, or from nature-based projects.

The Ministry of Trade and Industry (MTI) is expected to launch another call for proposals to find other high-quality credits later in 2025.

Nature-based credits could come from projects such as forest restoration and conservation, as well as sustainable agriculture.

Carbon markets can help to channel funds to often underfunded forest conservation and other nature preservation projects, as they provide a monetary incentive to replant a degraded area or keep an existing forest standing.