Singapore is embarking on its sustainability journey while meeting its demands for carbon management services and helping achieve its decarbonization aspirations. This creates new green growth potential for the country and region, while allowing it to meet its own carbon reduction targets and house several global corporations.
A recent study shows that Singapore’s advantages, such as its existing carbon services ecosystem, its position as a hub for green finance and commodity trading, and its proximity to Asia, will enhance its usefulness in showcasing carbon management services to businesses around the world. Specifically, one aspect was that Singapore’s strong fundamentals and renowned reputation made it ideally positioned to serve markets outside the country.
The findings of this study reaffirm that Singapore can play a complementary role to Southeast Asia in enabling global sustainability. Singapore is home to the headquarters of the world’s leading companies.
– Damian Chan, Executive Vice President, Singapore Economic Development Board
Chan added that as large corporations embark on their sustainability journeys, the EDB is looking for solutions to meet their needs for carbon management services and stands ready to support their decarbonization goals. “This opens up new green growth opportunities for Singapore and the region while meeting our own carbon commitments,” she said.
Commissioned by the Singapore Economic Development Board (EDB) and Enterprise Singapore (ESG), the research titled “Study of Singapore as a Carbon Services Hub” aimed to assess the country’s role in providing services for a low-carbon future. and to provide considerations for developing Singapore as a preferred location for carbon services. The projected gross value added accessible to the Singaporean economy by 2050 could range from $1.8 billion to $5.6 billion (S$2.4 to 7.6 billion), depending on the development of the global market.
The results confirmed Singapore’s continued efforts to develop its carbon services ecosystem as outlined in the Singapore Green Plan 2030 and that it can leverage various pre-existing advantages to provide carbon management services.
The country is recognized as a regional financial and commercial center. This opens up the possibility of combining commodity and carbon trading desks, as well as supporting decarbonization financing. The country also has an attractive carbon credit trading venue for international industry programs such as the International Aviation Carbon Offsetting and Reduction Program, as it is an international hub for carbon. aviation and maritime transport (CORSIA).
In addition, Singapore’s climate policy framework and decarbonization targets demonstrate the country’s commitment to reducing carbon emissions. It features a small but growing carbon services ecosystem, with around 70 companies active in carbon services having their headquarters or regional offices there.
Its proximity and connection to Southeast Asia (SEA), rich in nature-based solutions to tackle climate change, are two other advantages in terms of providing services to generate, finance and trade carbon credits. of the region, as well as to develop projects. within SEA-based supply chains. Additionally, Singapore is well placed to provide a diverse range of carbon-related services – a business base that can generate new business and employment opportunities. As a well-known hub in Southeast Asia, it can help the region grow by providing a variety of services that complement the region’s sustainable development efforts.
These services include the provision of financial, financial intermediation and legal services related to assisting businesses in their efforts to reduce carbon emissions, such as those needed to support compliance programs, industry programs and voluntary markets. . It can support SEA capacity building in areas such as carbon accounting, monitoring, reporting and verification (MRV), as well as carbon credit governance, to help the region develop compliance. and voluntary markets. The country would be able to provide decarbonization advisory services to global companies with regional operations as well as facilitate the purchase of carbon credits for the aviation and maritime sectors, given their significant decarbonization programs .
Meanwhile, careers could be created primarily in Singapore’s existing services, such as finance and commodity trading, insurance, and legal services. This implies that more experts in existing sectors will have to use their existing capacities to help customers meet their decarbonization demands, which will lead to the development of jobs in new and existing fields.
As the need for carbon services grows, expertise in managing carbon footprints, such as climate risk assessments, decarbonization strategy formulation and carbon trading, will be in high demand to help clients achieve their carbon reduction targets. It is expected that new positions in governance services, such as assurance and verification, would emerge. These positions can help keep decarbonization efforts on track.