In more detail

According to the NCCS, Singapore's decarbonization journey comprises three transitions:

• A carbon transition to reduce emissions across all sectors
• An energy transition to achieve a resilient net-zero electricity grid
• An economic transition to remain competitive in a low-carbon future and to capture new green growth opportunities

The NCCS is seeking input from the public on the following topics:

• Singapore's Economic Transition – This includes whether the public views that the Singapore government has provided attractive incentives to help companies decarbonize so that they can remain competitive, and whether Singapore should put in place policies that provide companies with stronger disincentives to emit carbon (for example, higher carbon taxes as well as regulations on emissions) to encourage them to decarbonize at a faster rate.
• Singapore's Decarbonization Measures – This includes whether the public is aware of how these measures (described below) contribute to decarbonization, and whether the public is supportive of these measures being a part of Singapore's transition to net zero:
  • Singapore's carbon tax, which provides a broad-based price signal so that businesses and individuals will be able to internalize the costs of carbon – The Singapore government in 2024 raised carbon tax from SGD 5 / tCO2e to SGD 25 / tCO2e (approximately USD 3.80 / tCO2e to USD 19.00 / tCO2e), and ultimately aims to progressively increase carbon tax to reach SGD 50 to SGD 80 / tCO2e by 2030 (approximately USD 38 to USD 61 / tCO2e).
  • Singapore's import of low-carbon electricity from neighboring countries – As Singapore has limited renewable energy resources, the Energy Market Authority has granted conditional licenses to allow the import of low-carbon electricity from Indonesia, Cambodia and Vietnam. Singapore intends to import 6 GW of low-carbon electricity by 2035, an increase from the previous 4 GW.
  • Singapore's solar deployment – According to the NCCS, solar energy is the most promising renewable energy source for Singapore, and Singapore aims to achieve at least a 2-GW peak by 2030.
  • Carbon Capture and Storage (CCS), which is the process of capturing, transporting and storing carbon dioxide in geological sites, thereby avoiding the release of emissions in the atmosphere – Singapore does not have suitable geological sites for carbon dioxide storage at scale and so is working with international parties to pursue cross-border CCS projects.
  • Industry Energy Efficiency Measures – Industry is the largest energy-consuming sector in Singapore. In recognition of this, Singapore has multiple support schemes, including the Energy Efficiency Grant, the Resource Efficiency Grant for Emissions, and the Investment Allowance for Emissions Reduction, to help businesses improve their energy efficiency and reduce emissions.
  • Minimum Energy Performance Standards – To reduce households' energy consumption, Singapore has progressively tightened minimum energy performance standards of household appliances. In addition, the Building and Construction Authority has also introduced such standards for new buildings as well as for existing buildings undergoing major retrofitting works under the Building Control Act (see our alert on this topic here).
  • Adoption of Cleaner Energy Vehicles – Singapore aims for all vehicles to run on cleaner energy by 2040. To achieve this, new registrations of diesel cars and taxis will be banned from 2025, and all new registrations of cars and taxis will be of cleaner energy models from 2030. Singapore has also implemented policies and measures to support electric vehicle adoption, including tax incentives, regulations and standards, and an expanded charging network.
  • Carbon credits – According to the NCCS, Singapore can access global mitigation opportunities through international carbon credits and thereby reduce overall costs of mitigation, as emissions reductions or avoidances abroad can be cheaper than domestic carbonization options, given Singapore's limited resources and alternative energy options. In November 2022, Singapore introduced an International Carbon Credit (ICC) Framework that allows carbon tax-liable companies to use ICCs that demonstrate high environmental integrity to offset up to 5% of their taxable emissions from 2024.
• Singapore's Climate Commitments – This includes the public's support of Singapore's goals, interest in climate change issues, and willingness to make behavioral changes to help achieve these targets.

The UN Paris Agreement

Under the UN Paris Agreement, countries are required to submit their climate targets every five years. These are known as nationally determined contributions (NDC) and are intended to be  reflective of countries' "highest possible ambition." The next targets, which will be set for 2035, are due for submission by February 2025.

The NDC system aims to help the world reach net-zero emissions by 2050 and cap global warming at 1.5°C.

Key takeaways

The NCCS is hopeful that the consultation will help them gain a sense of public support for the overall pace of Singapore's carbon transition, as well as of how the Singapore public views the opportunities and challenges presented by climate change.

As mentioned, the NCCS will take the public's feedback into consideration when developing the next round of climate targets, measures and policies. The NCCS is simultaneously considering the package of mitigation measures for its 2035 NDC. This may include enhancing measures currently being pursues to meet its 2030 target of reducing emissions to around 60 million tonnes.

According to the NCCS, the next NDC target will need to be determined more carefully, taking into consideration the rate of Singapore's increase in emissions from now until 2028, and whether Singapore can decarbonize from 65 million tonnes to 60 million tonnes in 2030, or if Singapore intends to use international carbon credits to meet this goal.

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