The Singapore Carbon Credit market size was valued at US$ 14.5 million in 2023 and is expected to reach US$ 55.14 million by 2030, grow at a compound annual growth rate (CAGR) of 21% from 2023 to 2030.

Singapore Carbon Credit Market Analysis

Carbon credits are tradable permits that allow organizations to emit a certain amount of carbon emissions. They are used by corporations and governments to offset their carbon footprints and meet sustainability goals. The growth in Singapore's carbon market is driven by increasing climate change awareness, government regulations, and corporate sustainability commitments

The Singapore Carbon Credit Market is segmented by project type, trading type, and end user. By project type, the renewable energy segment accounted for the largest share in 2022. Renewable energy projects like solar, wind, and hydropower are major sources of carbon credits globally. With Singapore's focus on expanding renewable capacity to meet its climate targets, renewable energy projects are expected to drive credit demand.

• Government Regulations to Reduce Emissions: The Singapore government has implemented various regulations and policies to reduce the country's greenhouse gas (GHG) emissions and meet its climate targets. Key regulations include the carbon tax implemented in 2020 on large emitters to incentivize reductions. Singapore also has a mandatory energy efficiency program and emissions reporting requirements. Such policies are expected to be a major driver for carbon credit demand as companies seek offsets to meet compliance obligations. The government aims to halve emissions from its 2030 peak by 2050 and achieve net zero emissions as soon as viable in the second half of the century.
• Corporate Sustainability and Decarbonization Goals: An increasing number of corporations and organizations in Singapore have set carbon neutral or net zero emissions targets. Major companies across sectors like banking, technology, manufacturing and transport have made public commitments to drastically reduce their carbon footprints. For instance, DBS Bank aims to be net zero by 2050, Microsoft by 2030 and Sembcorp Industries by 2050. To meet these goals, companies would need to buy high quality carbon credits to offset hard-to-abate emissions. Renewable energy purchase and energy efficiency measures may not be enough. Voluntary offsetting through credits will thus drive market growth.

• Mainstreaming of Carbon Credits and Trading: Carbon credits and emissions trading are moving into the mainstream business conversation globally, evidenced by announcements from tech giants like Microsoft and Meta establishing net zero targets. Singapore's carbon exchange, government backing and high trading environment make it well placed to drive mainstream adoption in Asia. Climate Impact X's marketplace model connects buyers and sellers in one place, providing an accessible platform for small businesses new to carbon markets. In 2020, it launched the Singapore Green Plan 2030, which aims to reduce the country's emissions intensity by 36% from 2005 levels by 2030, and to achieve net-zero emissions as soon as viable in the second half of the century. These instances indicate a growing trend towards the mainstreaming of carbon credits and trading in Singapore
• Live Streaming Taking Off: Live streaming is gaining substantial traction both for entertainment and conversations. Gaming live streams attract huge young audiences. Instagram lives enable direct creator-fan interactions. Conversational live audio apps like Clubhouse are ideal for knowledge sharing. Live shopping featuring product demos is also an emerging format. The raw, unfiltered nature of live content and the ability to directly interact with audiences adds to its appeal. Big tech platforms as well as startups are prioritizing live broadcasts. For instance, the Carbon Pricing Leadership Coalition (CPLC) often hosts webinars on carbon pricing and trading.

Figure 1. Singapore Carbon Credit Market Share (%)

Singapore carbon credit market is a relatively new and evolving market, with a number of players vying for a share of the growing pie.

Numerous factors influence the carbon credit market in Singapore. One metric ton of carbon dioxide is represented by one carbon credit, which can be exchanged, retired, or sold. An organization is probably allotted a certain number of credits to apply toward its cap if it is subject to a cap-and-trade system (such as the California Cap and Trade Program). The organization can trade, sell, or store the remaining carbon credits if it emits fewer tons of carbon dioxide than is allotted. The buyer buys the seller's allotment of emissions when a credit is sold. A very real reduction in emissions—which comes from an action you might not be aware of—makes a credit tradeable.

• In September 2022, Carbonbay announced the launch of its carbon trading and offsetting platform tailored for Asia Pacific markets. The platform enables organizations to buy carbon credits and helps develop regional offset projects.
• In November 2020, Carbon Credit Capital launched the world's first regulated tokenized carbon credits called Carbon Tokens. Each token represents one carbon credit and can be traded on digital exchanges.
• In March 2021, Carbon Capital acquired a minority stake in project developer ClimateCare to joint develop carbon reduction projects globally

• By Project Type
  • Renewable energy
  • Energy efficiency
  • Waste management
  • Forestry and land use
  • Household devices
  • Fuel switching
  • Others
• By Trading Type
  • Over the counter
  • Exchange Traded
  • Merchandise
  • Project Based
  • Others (futures, options etc)
• By End User
  • Corporations
  • Governments
  • Broker & Exchange
  • Project Developers
  • Individuals
  • Others (NGOs, public sector agencies etc.)