Singapore leads in accelerating decarbonization efforts in Southeast Asia: report

The state could expand the list of qualifying projects under its carbon tax regime.

Singapore was among the Southeast Asian countries that made great strides in reducing carbon emissions last year, but more has to be done to expedite efforts toward its green goals.

In a joint study by Bain & Company, GenZero, Standard Chartered and Temasek, the Lion City was found to be on track to reach its climate goals regarding financial prerequisites and infrastructure and technology, but unlikely to deliver target in terms of regulatory framework.

Singapore made significant progress toward its Nationally Determined Contribution (NDC) target to cut GHG emissions to 60 MtC02e by 2030, helping it keep its lead in the 2024 Green Index with a score of 55 out of 100.

Some of the advancements include transition credits, carbon pricing, as well as regional collaboration for low-carbon electricity imports. 

The report, however, highlighted how Singapore has to implement its green projects based on innovative finance mechanisms. This includes keeping records of transition credit projects to determine the successful uses of carbon credits for coal phase-out. 

Its Financing Asia's Transition Partnership initiative could also focus on executing blended finance schemes in the region by teaming up with both public and private stakeholders.

Further advancing carbon tax by expanding the list of qualifying projects and aligning carbon tax rate with global carbon prices.

Supporting grid development in its Southeast Asian neighbours through funding and technical assistance would also be critical for resource-scarce Singapore to raise available energy in the future.

“Amidst global competition for climate investments, countries which take the lead in charting out their decarbonization roadmap through clear policy frameworks, supportive regulations and concrete financing plans will be better positioned to attract private investment and accelerate their transition,” said Kimberly Tan, Head of Investments at GenZero.