Ready: Leading with sustainable impact regionally and into the future

The carbon tax, introduced in 2019, is a pivotal funding source for green infrastructure projects. To enhance its impact, the Government could increase transparency by detailing how tax proceeds are allocated. Public disclosures on investments in renewable grids, hydrogen terminals, and EV-charging networks would give businesses the clarity needed to align their sustainability strategies with national priorities.

This transparency would foster greater private-sector collaboration and instil investor confidence, strengthening Singapore’s position as a leader in green finance.

Green transport initiatives like the EV Early Adoption Incentive (EEAI) and Vehicle Emissions Scheme (VES) have accelerated the adoption of cleaner vehicles. To build on this momentum, the Government could expand support for green transport infrastructure, including clean-energy grids, hydrogen fuel networks, and renewable systems.

Such foundational investments would lower adoption costs for businesses and households, making green transport more accessible. Collaborating with manufacturers to develop affordable technologies would further ensure Singapore remains at the forefront of sustainable mobility.

SMEs face significant hurdles in adopting green technologies, including high upfront costs and limited expertise. Providing targeted grants and guidance programmes for renewable energy, carbon capture, and other low-carbon solutions would enable smaller businesses to innovate and participate in Singapore’s sustainability agenda.

This approach ensures inclusivity and supports the broader transition to a low-carbon economy while fostering cross-sector collaboration.

The S$5 billion Future Energy Fund is a cornerstone of Singapore’s efforts to develop low-carbon infrastructure. Expanding its scope to include smaller-scale and decentralised projects, such as localised renewable energy systems and pilot hydrogen solutions, would broaden its impact.

This would allow SMEs and smaller innovators to access funding, accelerating the development of scalable technologies and reinforcing Singapore’s reputation as a green innovation hub.

To support businesses in navigating ESG reporting complexities, Singapore could establish a centralised ESG reporting hub in collaboration with the Government, trade associations, and industry stakeholders. This hub would provide templates, best practices, and resources to simplify compliance with evolving regulations. It would also address challenges such as data quality, valuation methodologies, and greenwashing risks.

By offering clear guidance, the hub would empower businesses—particularly SMEs—to adopt robust ESG practices, ensuring competitiveness and alignment with global sustainability trends.

Cash grants for sustainable supply chain practices would incentivise companies to adopt greener operations. These grants could offset the upfront costs of Scope 3 emissions reporting, procurement frameworks, and eco-certifications.

Promoting the adoption of certified products and sustainable procurement decisions would reduce greenwashing risks and enhance Singapore’s reputation in global markets. Additionally, grants for life cycle analyses would help businesses quantify their carbon footprints, ensuring compliance with international green import regulations and attracting sustainability-focused investors.

A National Social Sustainability Framework would enable businesses to integrate social sustainability into their strategies effectively. This framework could offer guidelines for aligning charitable initiatives with corporate goals, incorporating social equity and environmental stewardship. Standardised metrics for measuring and reporting social impact would ensure consistency across industries.

By fostering partnerships with NGOs and aligning corporate strategies with national sustainability objectives, this framework would promote innovation, shared value creation, and stronger stakeholder trust.

To scale up blended finance, Singapore could offer grants and incentives for transactions that align with strategic green objectives, such as undersea cables for renewable energy or hydrogen infrastructure. First-loss guarantees and technical assistance could encourage private-sector investments in large-scale green projects.

This approach would accelerate sustainable financing and attract global investors, reinforcing Singapore’s position as a leader in green finance.

Adaptation financing is critical to enhancing resilience against climate risks. Singapore could establish dedicated funds to support projects such as seawalls, flood mitigation measures, and subsidies for energy-efficiency upgrades in low-income households.

By pre-emptively addressing these risks, adaptation financing would lower long-term economic and social costs, particularly for vulnerable communities. This initiative also aligns with Singapore’s inclusive and forward-thinking approach to sustainability.

Singapore could introduce tax deduction schemes and grants to encourage businesses to adopt sustainable practices and invest in green R&D. Expanding mentorship and skills development programmes in areas like sustainable agriculture and renewable energy would foster a vibrant ecosystem of start-ups and established businesses driving green innovation.

By supporting entrepreneurship, Singapore would not only accelerate the green transition but also equip young talent with the expertise needed to thrive in a sustainable economy.

“Hard-to-abate” industries, such as aviation, heavy industry, and maritime transport, require tailored support for decarbonisation. Singapore could create a decarbonisation assistance facility offering long-term financing, technical support, and pilot programme funding for clean energy solutions.

Refining carbon tax policies to reduce transaction costs for carbon credits and clarifying long-term carbon tax trajectories would further enable these industries to implement sustainable practices. National platforms connecting industries with financing and technology would promote collaboration and accelerate adoption.