The Singapore Carbon Credit Market, valued at USD 21.3 Million in 2025, is projected to exhibit a CAGR of 21.2%, reaching USD 81.8 Million by 2032.
Market growth is being driven by Singapore’s commitment to achieving net-zero emissions by 2050, supported by government-led initiatives such as the Carbon Pricing Act and the establishment of a regulated carbon exchange platform. Increasing corporate participation in voluntary carbon markets, coupled with rising demand for high-quality credits to offset emissions, is further accelerating adoption.
The market is also benefiting from Singapore’s role as a regional hub for sustainable finance and green investments, attracting international players seeking to trade and retire credits in a transparent ecosystem. Growing interest in nature-based solutions, renewable energy projects, and technology-driven carbon capture initiatives is expected to diversify supply options. Furthermore, cross-border collaborations within Southeast Asia are expanding opportunities for credit generation, positioning Singapore as a key player in facilitating both compliance and voluntary carbon trading across the region.
Market Takeaways
• By project type, renewable energy is expected to dominate with a 34.2% share in 2025, supported by Singapore’s strong push toward solar, wind, and clean energy initiatives to reduce dependence on fossil fuels.
• By trading type, over the counter transactions are anticipated to remain the most widely used, given their flexibility, tailored contracts, and strong participation from corporations seeking customized offset solutions.
• By end user, corporations are projected to lead the market, driven by net-zero commitments, sustainability reporting requirements, and the need to offset hard-to-abate emissions across various industries.
Singapore Carbon Credit Market Report Coverage
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Report Coverage |
Details |
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Market Revenue in 2025 |
USD 21.3 Million |
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Estimated Value by 2032 |
USD 81.8 Million |
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Growth Rate |
Poised to exhibit a CAGR of 21.2% |
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Historical Data |
2020-2024 |
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Forecast Period |
2025–2032 |
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Forecast Units |
Value (USD Million) |
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Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
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Segments Covered |
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Growth Drivers |
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Trends |
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Opportunities |
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Restraints & Challenges |
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Market Dynamics
The Singapore carbon credit market is experiencing rapid growth, fueled by the country’s ambitious net-zero by 2050 commitment and strong regulatory support under the Carbon Pricing Act. The establishment of Singapore as a regional hub for carbon trading and sustainable finance is attracting both domestic and international participants. Growing corporate demand for high-quality carbon credits to meet sustainability goals and ESG reporting requirements is a key driver of market expansion.
A major growth catalyst is the increasing focus on renewable energy, energy efficiency, and nature-based projects, which are generating a diversified supply of credits. Government-backed initiatives, such as the development of a regulated carbon exchange platform and partnerships across Southeast Asia, are enhancing the transparency and scalability of the market. Rising interest from multinational corporations in Singapore, combined with regional cross-border collaborations, is expected to accelerate adoption further.
In 2023 and 2024, Singapore advanced its position as a carbon trading hub through initiatives such as the launch of Climate Impact X (CIX), a marketplace for high-quality voluntary carbon credits, and expanded bilateral cooperation agreements with neighboring countries to source credits from renewable and forestry projects. These developments highlight growing institutional support and a robust pipeline of credit generation opportunities.
However, the market faces challenges, including the limited availability of standardized, high-quality credits, evolving verification protocols, and concerns about the credibility of some offset projects. Price volatility and varying global compliance frameworks also pose hurdles to widespread adoption.
Despite these challenges, the outlook remains highly positive. With continuous regulatory support, rising corporate climate pledges, and growing demand for voluntary and compliance-based offsets, Singapore is well-positioned to become a leading carbon trading hub in Asia Pacific, offering significant opportunities for project developers, exchanges, and investors through 2032.
Market Trends
- Rise of Technology-Enabled Verification and Blockchain Solutions
Advanced digital platforms, including blockchain and AI-driven monitoring tools, are being increasingly adopted to ensure transparency, traceability, and integrity of carbon credits. This trend is helping build trust among corporate buyers and international investors.
In July 2024, Arkreen, in collaboration with GreenBTC.Club and other partners began a project to tokenize Singapore building carbon credits for “on-chain offset” capabilities. This involves blockchain-based trading/offsetting via tokenization.
- Shift Toward High-Integrity Nature-Based Solutions
Demand for credits generated from reforestation, mangrove restoration, and biodiversity-focused projects is accelerating, as buyers seek co-benefits such as ecosystem preservation and community development alongside carbon reduction.
In April 2025, Sumitomo entered into joint ventures to reforest mangrove ecosystems in Madagascar and Mozambique via partners such as Value Network Ventures and Removall. These blue carbon projects aim to generate tens of millions of tons of carbon credits over long-term crediting periods (21-40 years), with co-benefits including coastal protection, ecosystem restoration, and community engagement.
Market Opportunities
- Cross-Border Credit Sourcing in Southeast Asia
Singapore’s bilateral cooperation agreements with countries such as Indonesia, Vietnam, and Cambodia are creating opportunities for project developers to supply high-quality credits from forestry, renewable energy, and mangrove restoration projects into Singapore’s carbon exchange ecosystem.
In September 2025, Singapore signed a carbon credit transfer agreement with Vietnam on September 16, marking its second such agreement with a Southeast Asian country following Thailand. The agreement establishes a framework for the generation and international transfer of carbon credits from Vietnamese carbon mitigation projects to Singapore, according to the Ministry of Trade and Industry (MTI).
- Integration of Carbon Credits into Financial Products
Banks and asset managers in Singapore are beginning to embed carbon credits into green bonds, exchange-traded funds (ETFs), and derivatives. This opens new avenues for institutional investors while deepening liquidity and positioning Singapore as a hub for carbon finance innovation.
In April 2022, Lion Global Investors, in collaboration with OCBC Securities, launched the Lion-OCBC Securities Singapore Low Carbon ETF, the first of its kind in Singapore. This exchange-traded fund (ETF) tracks the iEdge-OCBC Singapore Low Carbon Select 40 Capped Index, which focuses on companies with low carbon intensity. As of March 2025, the ETF had a total asset value of SGD 71.6 million and achieved a 27.8% return in 2024. The fund's performance surpassed other Singapore equity ETFs, highlighting the growing investor interest in low-carbon investments.
Analyst View
- The Singapore Carbon Credit Market is well-positioned for robust expansion through 2032, driven by the country’s net-zero by 2050 target, strong regulatory support under the Carbon Pricing Act, and the development of a regulated carbon exchange platform. Growing corporate commitments to sustainability and ESG reporting, coupled with rising demand for high-quality carbon credits, are key growth drivers.
- By project type, renewable energy projects are expected to remain the largest segment, supported by Singapore’s focus on solar, wind, and clean energy initiatives. Nature-based projects, including reforestation, mangrove restoration, and biodiversity-focused credits, are emerging as a high-growth segment due to the co-benefits of ecosystem preservation and community development.
- On the trading front, over the counter transactions are anticipated to remain the dominant channel owing to their flexibility and tailored contracts. Exchange-traded and derivatives-linked products are gaining traction, offering institutional investors greater liquidity and portfolio diversification. Tokenization and blockchain-enabled platforms, as demonstrated by Arkreen’s 2024 project, are providing new avenues for transparent, on-chain credit trading.
- By end user, corporations are expected to account for the largest share of demand, driven by mandatory sustainability disclosures and net-zero commitments. Governments, project developers, and financial institutions are increasingly participating in voluntary and compliance-based carbon markets, while individuals and NGOs are gradually entering through smaller-scale projects.
- Regionally, Singapore is establishing itself as a hub for carbon finance innovation in Southeast Asia, leveraging bilateral agreements with Vietnam, Thailand, and other ASEAN nations to source high-quality credits. Cross-border credit sourcing and partnerships with project developers across the region provide Singapore-based buyers access to diversified, high-integrity credits.
- From an investment and product strategy perspective, the strongest opportunities lie in: (a) high-quality nature-based and renewable energy credit projects, (b) integration of credits into financial products such as green bonds, ETFs, and derivatives, (c) technology-enabled verification platforms using blockchain and AI for transparency and traceability, and (d) cross-border sourcing and partnerships that expand credit availability.
- Key challenges include limited standardization and verification protocols, price volatility, regulatory complexity, and the need to ensure credibility and environmental integrity of offset projects. Addressing these challenges through robust verification, transparent reporting, and adherence to high-integrity methodologies will be essential for market confidence and sustained growth.
Recent Key Developments
- In November 2022, Climate Impact X (CIX), a Singapore-based global marketplace and exchange for quality environmental credits, and Respira International, an impact-driven carbon finance business, completed a landmark auction for high-quality nature-based blue carbon credits. The auction successfully sold 250,000 tonnes of vintage 2021 credits from the Delta Blue Carbon Project in Pakistan, the world’s largest mangrove restoration project, at USD 27.80 per tonne. This is USD 10.00 per tonne, or close to 40 per cent premium to current spot prices for major REDD+ nature-based solutions of the same credit vintage.
Competitive Landscape
- Climate Impact X
- Carbon Credit Capital
- Carbonbay
- Southpole
- Triple Oxygen
- Carbon Neutral
- Credible Carbon
- GreenTec Capital
- Carbon Future
- Carbon Capital
- Carbon Equity
- Carbon Neutral Investments
- Green Business Certification Singapore
- Carbon Neutral Pte Ltd
- Sindicatum Renewable Energy
- Climate Impact X
Singapore Carbon Credit Market Segmentation
- By Project Type
- Renewable energy
- Energy efficiency
- Waste management
- Forestry and land use
- Household devices
- Fuel switching
- Others
- By Trading Type
- Over the counter
- Exchange Traded
- Merchandise
- Project Based
- Others (futures, options etc)
- By End User
- Corporations
- Governments
- Broker & Exchange
- Project Developers
- Individuals
- Others (NGOs, public sector agencies, etc.)
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