Inaugural S R Nathan Fellowship Young Leaders Seminar
At the inaugural S R Nathan Fellowship Young Leaders Seminar held on 24 February 2025, Ms Melissa Low, Research Fellow at the NUS Centre for Nature-based Climate Solutions, delivered a keynote speech titled “Shaping Singapore’s Climate Future: Achieving NDCs with the Use of Carbon Markets”. The address provided a comprehensive overview of Singapore’s evolving climate policy framework and detailed how the nation leverages international carbon markets to meet its Nationally Determined Contributions (NDCs).
Policy Evolution and International Engagement
Ms Low outlined Singapore’s journey from its accession to the Kyoto Protocol in 2006, through its active participation in international climate summits such as COP15, to the establishment of the National Climate Change Secretariat in 2010. She described how these milestones contributed to the progressive refinement of Singapore’s climate targets — from an initial emissions intensity reduction to a concrete emissions cap, culminating in the latest NDC that features a downward emissions trajectory.
Legislative Framework and Carbon Markets
Her keynote focused on the legislative measures underpinning Singapore’s climate strategy. Ms Low explained the role of the Carbon Pricing Act — first introduced in 2018 and later amended to support the nation’s ambition for net-zero emissions by 2050 — in establishing a fixed-price credit-based system. This framework facilitates the use of international carbon credits, known as Internationally Transferred Mitigation Outcomes (ITMOs), to assist in meeting national climate targets. Emphasis was placed on the necessity of robust transparency mechanisms, such as Biennial Transparency Reports, which are vital for ensuring consistency and accountability in carbon trading.
Challenges and Strategic Considerations
On addressing key challenges inherent in the current system, Ms Low explained how the time lag in transparency reporting affects effective assessment of carbon goals and the need for coordinated reporting between Singapore and its partner countries. She highlighted that Singapore’s eligibility criteria for international carbon credits exceed standard international requirements, thereby setting a higher benchmark for environmental integrity and reinforcing its leadership in global climate action.
Looking Ahead
Concluding her keynote, Ms Low urged enhanced international collaboration and capacity-building efforts for carbon trading countries to support effective implementation and compliance with Article 6 of the Paris Agreement. Her speech underscored the importance of continuous innovation, stringent reporting standards, and proactive engagement with counterparties to ensure that carbon market mechanisms truly contribute to global climate ambition.
By delineating the historical context, legislative framework and strategic imperatives of Singapore’s climate policy, Ms Low’s keynote established the country’s clear agenda for future dialogue on achieving sustainable and resilient climate targets.
Panel Discussion
Following the keynote, Mr Rueban Manokara and Mr Ho Xiang Tian joined Ms Low for a panel discussion moderated by Ms Kong Man Jing (Biogirl MJ).
Mr Manokara, Global Lead of the Carbon Finance and Markets Task Force at World Wide Fund for Nature – International, shared on his experience in working with national climate policies. As Singapore’s former lead negotiator for Article 6, he emphasised that the evolving clarity in international rules is enabling countries to better utilise carbon markets. He also pointed out that many nations are now signalling their intention to engage in carbon trading, a development that underscores the importance of carbon markets as a tool for offsetting residual emissions. In his view, carbon markets are not intended as the primary method for decarbonisation; rather, they serve as a complementary mechanism to domestic measures such as Singapore’s carbon tax, which covers a significant portion of the economy and ensures that carbon credits are used only to address emissions that cannot be eliminated through direct decarbonisation efforts.
Mr Ho, co-founder of environmental group LepakinSG and a climate researcher at the Singapore Management University, provided a detailed overview of Singapore’s emissions profile, explaining that the top contributors to emissions are the energy, industrial and transport sectors. Noting that around 40 per cent of emissions stem from energy and industrial respectively, and approximately 16 per cent from transport, Mr Ho described how these sectors are being targeted for decarbonisation. He noted that Singapore is phasing out internal combustion engine vehicles by 2040 and is also planning to import up to 6 gigawatts of renewable energy — a move expected to contribute roughly 8 megatonnes of carbon abatement. His analysis pointed to the fact that while domestic measures are crucial, any shortfall in emission reductions might necessitate the cautious and high-integrity use of carbon credits as a supplementary measure.
During the Q&A segment, a range of issues were raised by both the live audience and online participants. A participant questioned whether Singapore’s efforts have been more about verbal commitments than actionable policies. Another question reflected on the broader challenge of bridging the gap between policy formulation and practical climate action, and asked for insights on how young leaders might move from advocacy to effective implementation.
Mr Manokara responded by highlighting the distinct roles of different actors in the climate landscape. He stressed that while the government is responsible for creating the policy framework, the responsibility for translating these policies into action lies with the wider ecosystem, including academia, financing institutions and civil society. This collaborative approach, he argued, is essential for bridging the gap between policy and practice, thereby supporting more ambitious climate targets.
Further questions were raised regarding the impact of international developments on Singapore’s climate strategy. There were concerns about potential challenges arising from host countries’ varying capacities, such as delays in submitting Biennial Transparency Reports, and the risk of Singapore being perceived as engaging in “carbon colonialism” if it over-relies on purchasing credits from developing nations. Ms Low responded by noting that while the prospect of the United States withdrawing from the Paris Agreement has been discussed, such moves are unlikely to derail global efforts, as subnational actors and other countries remain committed to the Agreement’s framework. She reiterated that the Paris Agreement is legally binding in terms of accountability, even if it does not mandate outcomes, and emphasised the need for Singapore to pursue robust international partnerships and capacity-building initiatives.
Click here to watch the video of the seminar.