The Singapore government’s inaugural tender for carbon credits has attracted substantial interest, drawing more than S$1.3 billion in bids across 17 submissions, according to documents published on the government’s procurement portal, GeBiz.
The top bid, amounting to nearly S$300 million, came from the carbon trading division of commodities powerhouse Trafigura. While the total number of credits offered and the per-unit cost were not disclosed, the scale of the bid underscores the growing demand for emissions offset mechanisms.
Launched in September last year, the request for proposal marked Singapore’s first large-scale effort to procure carbon credits as part of its strategy to meet national climate goals. To achieve its 2030 target of limiting emissions to 60 million tonnes, the government anticipates the need to offset approximately 2.51 million tonnes of carbon dioxide equivalent annually from 2021 to 2030.
Mercuria Asia Resources submitted the second-highest bid, over S$206 million for more than five million carbon credits, pricing each at approximately S$38.50. DNZ ClimateTech followed with a S$200,000 bid for five million credits at S$40 per unit, while GenZero, a decarbonisation platform backed by Temasek, offered the highest unit price, S$55 for 500,000 credits, totalling S$27.5 million.
Other notable participants included Shell, which bid S$34 million, and PetroChina, the state-owned Chinese oil and gas firm, which offered S$21.8 million.
Following the close of the tender in February, Second Minister for Trade and Industry Tan See Leng confirmed during the Committee of Supply debate in March that a second tender would be launched later this year.
In the current round, the government is seeking to purchase at least 500,000 nature-based carbon credits, each equivalent to one tonne of carbon dioxide removed or reduced. Eligible credits must be generated between 1 January 2021 and 31 December 2030, and must comply with both Singapore’s environmental integrity standards and the Article 6 provisions of the Paris Agreement.
Nature-based credits typically originate from initiatives such as reforestation, forest conservation, afforestation, and the restoration of wetlands and coastal ecosystems. In line with Article 6, credits used by Singapore must be subject to “corresponding adjustments” — ensuring that the host country cannot simultaneously count the emissions reductions toward its own climate targets.
At present, Singapore may only purchase adjusted credits from countries with which it has formalised carbon trading agreements. To date, such agreements have been signed with Papua New Guinea, Ghana, and Bhutan. However, the tender also allows for the sourcing of credits from other countries, provided written confirmation is obtained from the host nation’s government expressing willingness to negotiate a bilateral agreement.
