NATIONAL STRATEGY
Singapore’s national strategy on renewable energy focuses on diversifying and increasing the use of clean energy sources while ensuring the country’s energy security and economic growth. Given Singapore's limited land area, its strategy places a strong emphasis on technological innovation and regional collaboration to overcome space constraints.
In 2022, Singapore raised its climate ambition to achieve net zero emissions by 2050. To enable this transition to a low-carbon future, Singapore will raise the carbon tax levels progressively from 2024. Carbon tax will be raised to $25/tCO2e in 2024 and 2025, and $45/tCO2e in 2026 and 2027, with a view to reaching $50-80/tCO2e by 2030. Currently, nearly 95% of the country’s electricity needs come from natural gas, aiming to increase the role that true renewable energy sources play. Another primary focus is reducing the emissions that local industries generate to combat climate change by tracking energy efficiency and applying a carbon tax.
MARKET INCENTIVES
In Singapore, several government bodies, including the Energy Market Authority (EMA), the Building and Construction Authority (BCA), and the Economic Development Board (EDB), actively promote the adoption of renewable energy through various schemes and incentives. The Green-e Renewable Energy Standard is one such initiative, offering Green-e Energy certification to enhance renewable energy markets and provide consumers a clear way to support clean electricity. Rather than relying on subsidies, Singapore focuses on regulatory improvements and funding for R&D to develop commercially viable renewable technologies. Singapore Power Group (SP) plays a key role in this ecosystem, being the first in the Asia Pacific region to issue International Renewable Energy Certificates (I-RECs), which track renewable energy production and help companies meet sustainability targets.
Expanding on these national efforts, Singapore’s MPA 2050 Net-Zero Blueprint sets out strategies to decarbonize its maritime sector, including transitioning port terminals to cleaner energy, shifting harbour craft to net-zero fuels by 2050, and developing multi-fuel bunkering for international shipping. The plan also aims for 50% of the Singapore Registry of Ships to be green by 2050 while advocating for global climate action. Investments in R&D, green financing, and carbon capture and storage (CCS) support these goals, with S$300 million committed to accelerating sustainable maritime practices.
Beyond maritime applications, Enterprise Singapore’s TC114 working committee is also driving the adoption of clean marine energy for emerging industries such as aquaculture and tidal energy-powered data centres, reinforcing Singapore’s broader commitment to renewable energy innovation across multiple sectors.
PUBLIC FUNDING PROGRAMS
Ocean renewable energy has been recognized as a key alternative energy source by ERI@N, especially for remote coastal and island regions, as part of its focused research initiatives. The government also encourages clean technology companies to utilize Singapore as a ‘Living Lab,’ allowing them to test and showcase innovative solutions before scaling them globally.
The Singapore Government has allocated over S$800 million in public funds to support research in energy, water, green buildings, and solutions for land scarcity. Additionally, $55 million has been granted to fund 12 projects focused on low-carbon energy technologies. The government is also ready to invest more than the estimated S$1 billion in carbon tax revenues generated during the first five years to help businesses adopt energy- and carbon-efficient technologies. Furthermore, the Maritime and Port Authority of Singapore (MPA) has teamed up with several major industry players, creating a $90 million decarbonization fund to enhance efforts in reducing emissions in the maritime sector.
