Singapore leads Southeast Asia in green finance and energy goals: report

Technology and clean energy investment are other areas where Singapore is gaining ground, the report said.

Singapore is emerging as a critical force in Southeast Asia’s green transformation, taking the lead in green finance, carbon markets, and clean energy innovation, according to the newly released 2025 Southeast Asia’s Green Economy Report.

The report, published by Bain & Company, GenZero, Google, Standard Chartered, and Temasek, highlighted how Singapore is enabling system-level changes that support regional decarbonization efforts.

At the heart of Singapore’s strategy is its commitment to climate and transition finance. Through the Green Investments Partnership (GIP), a programme under the Monetary Authority of Singapore’s FAST-P initiative, the city-state aims to mobilize up to US$5b to fund green and transition infrastructure projects across Asia.

One example of this is an $80m deal by Pentagreen Capital — a Singapore-based platform — to support utility-scale solar and battery storage projects in the Philippines and Indonesia.

Singapore is also establishing itself as a hub for credible carbon markets. Climate Impact X, headquartered in Singapore, and the Transition Credits Coalition (TRACTION) are helping scale transition credits to support the early retirement of coal-fired power plants in the region.

These efforts are part of a broader push to develop a US$35b carbon market across Southeast Asia by 2030.

Technology and clean energy investment are other areas where Singapore is gaining ground. Google’s sustainability strategy includes 275 megawatts of new clean energy generation capacity, with projects in Singapore supporting grid optimization and carbon-free electricity.

AI tools are being used to enhance grid management and energy efficiency, enabling smarter, more resilient infrastructure.

Despite having one of the highest per capita emissions in the region at 11.9 tons CO₂e in 2023, Singapore is on track to meet its 2030 climate targets. The country plans to lower its national emissions to 0.06 GtCO₂e by the end of the decade, balancing economic growth with emissions reduction.

Singapore’s institutional role in sustainable finance continues to grow. It is home to the Singapore Green Finance Centre, the Singapore Sustainable Finance Association, and digital infrastructure like SGTraDex.

These platforms are supporting capital deployment, emissions tracking, and market development for climate-related investments.

The report positions Singapore as a model for integrating climate goals with economic strategy. With less than five years to achieve regional emissions targets, Singapore’s blend of policy, finance, and innovation could be key to driving Southeast Asia’s green economy forward.