Singapore Launches 12 Million Carbon Credit Tender Under Article 6

Why it matters: The 12-million-tonne target is more than five times the volume of Singapore’s first government purchase and signals that Article 6 is shifting from bilateral framework agreements to actual procurement at scale. Because these are future credits (projects still need approval, monitoring and verification, a process Singapore says can take up to four years), the tender tests whether the Article 6 pipeline can deliver real supply on the timeline buyers need.

What is still undecided and what needs to happen

The 12 million tonnes are a procurement target, not issued credits. Several steps remain before any tonne counts toward Singapore’s climate goals. Projects proposed in the second stage must be approved under the relevant bilateral Implementation Agreement, monitored over time and independently verified. Host countries must formally authorise each mitigation outcome and apply a corresponding adjustment to their own emissions inventory, ensuring no double counting. Singapore also cancels 2% of authorised credits at issuance and requires 5% of proceeds to go to adaptation in host countries or the UNFCCC Adaptation Fund, reducing the net volume available.

Final eligibility rules have not been fully published for this tender. Singapore has indicated that both nature-based and technology-based projects (renewable energy, methane reduction, industrial abatement and carbon removal) may qualify, but specific requirements for each category, especially the additional hurdles for renewable energy projects that may already be financially viable, will shape which proposals advance. The briefing for pre-qualified bidders is scheduled for September 23, 2026, which should clarify remaining criteria.

Who gains and who loses

Project developers with assets in Singapore’s partner countries stand to gain the most. Singapore has signed Implementation Agreements with Ghana, Bhutan, Chile, Mongolia, Papua New Guinea, Peru, Rwanda, Paraguay, Thailand, Vietnam, the Philippines and, as of September 2026, Laos. Developers operating in those jurisdictions now have a visible, large-scale buyer willing to commit to long-term offtake. That visibility can help secure project financing that would otherwise be difficult to obtain for early-stage carbon projects.

Host countries also benefit: carbon finance can channel investment into forests, clean energy and waste management, while the 5% adaptation levy and Singapore’s US$15 million commitment to the Global Green Growth Institute’s Carbon Transaction Facility add direct financial support for capacity building.

On the other side, developers offering credits that do not meet Singapore’s strict quality rules (additionality, permanence, accurate measurement, no double counting) face exclusion. The extra requirements for certain renewable energy projects explicitly target credits from projects that would have been built anyway, filtering out lower-integrity supply. Voluntary carbon market credits that lack corresponding adjustments also lose relevance in this context, since Singapore’s system requires the host country to adjust its own inventory, a safeguard most voluntary market transactions do not carry.

Scale comparison and market context

Singapore has estimated it could need around 2.51 million ITMOs per year during its 2021-2030 NDC period. The 12-million-tonne tender, if fully delivered, would cover roughly five years of that estimated annual need, though delivery timelines will depend on project development speed. For context, the carbon tax covers facilities emitting at least 25,000 tonnes of CO2 equivalent per year, representing about 70% of national emissions. As the tax rate climbs toward S$50-S$80 per tonne by 2030, demand pressure on eligible international credits is set to increase, making early procurement a hedge against future scarcity and price rises.

via CarbonCredits.com