Singapore Raises Emissions Targets in 2035 to Achieve Net-Zero Emission by 2050

On 10 February 2025, the National Climate Change Secretariat  (“NCCS“) unveiled its 2035 emissions targets in Singapore’s Second Nationally Determined Contribution and Accompanying Information (“2035 NDC“) submitted to the United Nations Framework Convention on Climate Change. Singapore commits to reduce emissions to between 45 to 50 million tonnes of carbon dioxide equivalent (“MtCO₂e“) in 2035.

Under the Paris Agreement, countries are required to submit their climate targets every five years from 2020 onwards. Singapore’s 2035 NDC was prepared as informed by the outcomes of the first global stocktake that concluded in 2023, Singapore’s long-term low emissions development strategy, as well as related technical studies and technology roadmaps, while also considering stakeholders’ feedback (including feedback from the public). Please refer to our Client Update here for details on NCCS’ public consultation on Singapore’s decarbonisation journey that was held between 8 October 2024 and 5 November 2024.

The 2035 NDC follows up on Singapore’s ambition to reduce emissions to 60 MtCO₂e in 2030 as announced in Singapore’s Second Update of its First Nationally Determined Contribution and Accompanying Information (“2030 NDC“). With these progressively ambitious targets, Singapore sends a strong signal of its dedication towards the long-term goal of achieving net-zero emissions by 2050.

This Update provides a summary of Singapore’s 2035 NDC, highlighting mitigation policies and plans already in place as well as future strategies.

Timeframe for Implementation

The implementation period for Singapore’s 2035 NDC will be from 1 January 2031 to 31 December 2035.

Scope and Coverage

The scope covered by Singapore’s 2035 NDC is unchanged from that of the 2030 NDC, involving an economy-wide absolute greenhouse gas (“GHG“) emissions reduction target. It covers:

• • Key sectors: Energy, Industrial Processes and Product Use, Agriculture, Land Use, Land-Use Change and Forestry (LULUCF) and Waste; and
  • GHGs: Carbon dioxide, methane, nitrous oxide, hydrofluorocarbons (“HFCs“), perfluorocarbons (PFCs), sulphur hexafluoride and nitrogen trifluoride.

Ongoing and Forward-looking Mitigation Strategies

Singapore’s pace of decarbonisation and consequential fulfilment of its 2035 NDC is intricately dependent upon advancements in emerging mitigation technologies and robust international collaborations. Singapore remains steadfast in its investment in and promotion of international cooperation for the development and deployment of potential key decarbonisation pathways, including low-carbon hydrogen and carbon capture utilisation and storage (“CCUS“). Additionally, Singapore regularly reviews its domestic policy and regulatory frameworks, such as carbon taxation and energy efficiency standards, to ensure alignment with its long-term ambition.

Transition to Natural Gas, Hydrogen-Ready Requirements: Singapore has been a pioneer in transitioning its energy system from fuel oil to natural gas, the cleanest form of fossil fuel for power generation – natural gas in Singapore’s fuel generation mix was gradually switched up, from around 18% in 2000 to around 95% in 2023. Subsequently in 2024, the Energy Market Authority (“EMA“) set an emissions mandate for new fossil fuel generation units to be at least 30% hydrogen-ready by volume, with the capability to be retrofitted to become 100% hydrogen-ready in the future. This forward-thinking approach will enable further reductions in power sector emissions as hydrogen becomes more commercially viable.

Carbon Pricing: Since 2019, Singapore has put in place a carbon pricing scheme, a first among Southeast Asian countries. This is implemented through a progressive carbon tax regime to incentivise economy-wide transition to a low-carbon economy. The carbon tax, which initially started at S$5 per tCO₂e, was raised to S$25 per tCO₂e in 2024 and is set to further increase to S$45 per tCO₂e in 2026, with a target of reaching S$50 to S$80 per tCO₂e by 2030. In addition, Singapore does not subsidise fossil fuels and instead imposes taxes on their use (e.g., through petrol duties) to price in the environmental cost of their use. At present, Singapore’s scheme is one of the most comprehensive globally with around 80% of total emissions covered by the carbon tax and fuel excise duties on transport fuels, and 70% of emissions specifically covered by the carbon tax.

Maximizing Domestic Solar Deployment: Singapore has more than tripled its solar power deployment from 0.43 gigawatt-peak (GWp) in 2020 to approximately 1.35 GWp, in spite of its dense urban environment and small land area. Singapore is on a clear path to achieving at least 2 GWp by 2030, which will meet around 3% of its total projected electricity needs.

Improving Energy Efficiency: In 2022, Singapore’s energy intensity was nearly half the global average, placing it in the top quartile worldwide. Singapore continues to enhance higher energy efficiency for businesses and households through incentives and regulations, such as the Resource Efficiency Grant for Emissions and Energy Conservation Act.

Cross-Border Low-Carbon Electricity Trading: Singapore is embarking on cross-border electricity trading with neighbouring countries to import low-carbon electricity. The target for clean electricity imports has been raised from 4 GW to around 6 GW by 2035, which is expected to meet one-third of Singapore’s electricity needs. Underscoring Singapore’s commitment to regional connectivity and increasing energy storage capacity, Singapore has at COP29, signed the Green Energy Zones and Corridors Pledge and the Global Energy Storage and Grids Pledge. To date, Singapore has granted Conditional Approvals to five projects from Australia, Cambodia, Indonesia, and Vietnam, and advanced another five projects from Indonesia to Conditional Licences. If realised, these projects will be the foundation of an interconnected ASEAN Power Grid.

Accelerating the Phase-Out of Unabated Coal: As a member of the Powering Past Coal Alliance, Singapore is committed to phasing out unabated coal in its electricity mix by 2040, which currently stands at 1%. MAS convened the Transition Credits Coalition in 2023 to explore the use of high integrity credits to finance the early retirement of coal-fired power plants.  

Exploring Emerging Low-Carbon Solutions and Technologies for the Hard-to-Abate Sectors and Power Generation: Singapore is investing in research and development to improve the technoeconomic viability of hydrogen and CCUS technologies in industry and power generation, as well as studying and piloting, where feasible, ammonia and advanced geothermal systems as energy sources. Singapore has set a target of achieving approximately 2 million tonnes per annum (mtpa) of CO₂ abatement for the industry sector through Carbon Capture and Storage (“CCS“) by 2030. In 2022, Singapore launched the National Hydrogen Strategy to chart a pathway towards the potential adoption of low-carbon hydrogen as an energy source and feedstock by 2050.

Building Capabilities in Nuclear Science and Technology: While Singapore has not made a decision on whether to deploy nuclear energy, it is building capabilities in nuclear science and technology to understand the implications and benefits of advanced nuclear energy technologies. In July 2024, Singapore signed the 123-Agreement with the United States to deepen civil nuclear cooperation. To facilitate capability building in nuclear technology and safety, EMA also signed memoranda of understanding (MOUs) with the Emirates Nuclear Energy Corporation from the United Arab Emirates, and the Ministry of Climate and Enterprise of Sweden, in October 2024 and November 2024 respectively.

Future Energy Fund (“FEF”) to Support Clean Energy Investments was established in 2024 to mitigate various risks that could delay such investments, such as the risks of high upfront costs and significant commercial, technological, and geopolitical risks. The FEF focuses on supporting capital expenditure and will not be used to subsidise fuel costs and recurrent expenditures. For instance, if Singapore decides to build its first-ever hydrogen terminal, the FEF may be used to mitigate the associated commercial risks.  

Land Transport Plans to Accelerate the Reduction of Emission from Road Transport: These  include investment in the development of active mobility and public transport infrastructure to elevate “Walk-Cycle-Ride” to become the preferred mode of travel. Singapore is committed to phasing out pure internal combustion engine vehicles by 2040 and facilitating the adoption of zero and low-emission vehicles such as electric vehicles. 

Accelerating the Reduction of Non-CO₂ Emissions (HFC and Methane Emissions): Singapore ratified the Kigali Amendment in 2022 and will be regulating HFC imports. To regulate HFC use, Singapore has implemented a ban on appliances using refrigerants with high Global Warming Potential in order to curb HFC emissions from the refrigeration and air-conditioning (“RAC“) sector. Singapore also requires the training and certification of technicians to ensure emissions are minimised during RAC servicing works. Singapore has signed the Global Methane Pledge at COP26 and has taken steps to reduce methane emissions from landfills by incinerating waste and wastewater sludge.

Internationally Transferred Mitigation Outcomes (“ITMOs”) to Make Up Residual Emissions: Singapore plans to use ITMOs under Article 6 of the Paris Agreement to address residual emissions reductions required to meet the target, after accounting for the abatement from all other policies and plans implemented successfully within the timeframe.

Our Comments on Singapore’s 2035 NDC

Singapore’s 2035 NDC, taken together with its 2030 NDC, represents a forward-thinking commitment to addressing climate change and exemplifies remarkable stewardship on sustainable development in the interest of current and future generation to continue to thrive, amidst global geopolitical uncertainties that abound. Singapore’s persistence to respect the goal of the Paris Agreement demonstrates ambition despite unique national circumstances – a small island state with high population density, physical constraints that limit domestic deployment of low-carbon energy, as well as high reliance on international trade.

The targets and initiatives outlined therein show a proactive approach towards innovation, international collaboration, and policy adaptation, ensuring that Singapore remains resilient and competitive.  While the transition to a low-carbon economy presents challenges, it also offers significant business opportunities for innovation and collaboration in green and emerging sectors, and for co-creation through public-private collaborations.

Businesses up to the challenge need to be planning ahead now and start considering how and what steps need to be taken, even as some degree of re-engineering in strategy and business approach will need to be taken. This could include equipment purchases and potential infrastructure replacements, which are necessary as part of a cycle of renewing and revamping.

If you have any queries, please feel free to reach out to our team members.