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illuminem summarises for you the essential news of the day. Read the full piece on The Straits Times or enjoy below:
🗞️ Driving the news: Singapore has issued a second call for carbon credit proposals, seeking both nature-based and technology-based solutions to meet its climate targets for 2030
• This marks the first time the country has sourced technology-based carbon credits, such as those from direct air capture plants
• The credits will help Singapore reduce its projected emissions and meet its Paris Agreement commitment
• The latest call focuses on securing at least 25,000 tonnes of carbon credits annually from each project, aiming to offset up to 5% of the carbon tax bills for businesses
🔭 The context: Singapore, a city-state with limited natural resources, relies heavily on carbon credits to meet its emissions reduction goals
• The country has already committed to offsetting approximately 2.51 million tonnes of CO2 per year over this decade
• Last year, Singapore purchased 2 million tonnes of nature-based credits from projects in countries like Ghana, Peru, and Paraguay
• With this new request, the government aims to diversify its sources by adding technology-based solutions, which include innovative approaches like carbon capture and landfill gas capture
🌍 Why it matters for the planet: As part of global efforts to combat climate change, Singapore’s initiative underscores the increasing role of carbon markets and carbon credit trading in national strategies
• By supporting a range of emission reduction and removal technologies, Singapore is not only pushing its own climate agenda but also fostering a broader international market for carbon credits
• The diversification of project types also offers valuable co-benefits, such as biodiversity conservation, improved air quality, and energy security, all of which are essential for achieving net-zero emissions by 2050
⏭️ What's next: The pre-qualification process for these projects is set to close on January 16, 2026. Developers from 10 countries that Singapore has agreements with (including Chile, Vietnam, and Rwanda) will be eligible to participate
• The implementation agreements ensure the credibility of the credits, preventing issues like double-counting of emission reductions
• As demand for carbon credits grows, Singapore's carbon trading ecosystem stands to benefit from this increasing market activity
💬 One quote: "These credits will help Singapore meet its 2030 target to reduce harmful carbon emissions and bring down total emissions from 62.51 million tonnes to 60 million tonnes." — Ministry of Trade and Industry (MTI), Singapore
📈 One stat: Singapore plans to offset up to 5% of its carbon tax using carbon credits, equating to 2.51 million tonnes of emissions per year over the next decade
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