On 15 March 2026, Singapore’s Ministry of Trade and Industry (“MTI“) and Japan’s Ministry of Economy, Trade and Industry (“METI“) signed the Energy, Sustainability, and Climate Change Cooperation Framework (“Framework“). The Framework seeks to assist Singapore and Japan work towards their respective net-zero goals and reduce emissions in the power sector and the hard-to-abate industries.
Under the Framework, MTI and METI will enhance collaboration in low-carbon and energy transition areas, such as cross-border electricity imports, low-carbon hydrogen/ammonia, carbon capture, utilisation and storage (CCUS), civil nuclear energy, liquefied natural gas (LNG), advanced grid system enablers, and offshore wind, all of which have potential to help Singapore and Japan meet their respective net-zero goals.
The Framework envisages collaboration in the form of policy exchanges, business facilitation, facilitation of financial cooperation, and the harmonisation and mutual recognition of standards, regulations and certification.
Singapore and Japan will work together to encourage industry players and financial institutions to collaborate and invest in low-carbon energy projects and support the technological and supply chain development of low-carbon energy pathways. The MTI press release also provides examples of Singaporean companies involved in energy projects in Japan with Japanese companies, namely Seatrium and Sembcorp Industries (Sembcorp).
As Singapore and Japan deepen cooperation on energy transition and sustainability, the Framework is expected to encourage the development and structuring of low-carbon and energy transition projects. Companies considering or undertaking projects in this area are welcome to reach out to our contacts listed on this page to discuss how these developments may impact their transactions and investments.
Singapore-based enterprises looking at decarbonisation and energy transition infrastructure can tap on our environmental, social, and governmental (ESG) legal fee subsidy for environmental related legal advisory under the Sustainability Legal Catalyst Programme with Enterprise Singapore. Terms and conditions apply. You can reach out to us at [email protected].
Click on the following link for more information:
- MTI Press Release titled “Energy, Sustainability and Climate Change Cooperation Framework” (available on the MTI website at mti.gov.sg)
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