$800m decarbonisation push, SAF levy delayed, nuclear studies advance
SINGAPORE — The Singapore Economic Development Board (EDB) has released its Q1 2026 sustainability update, detailing a broad suite of measures aimed at strengthening the Republic’s green industry transition. The initiatives span decarbonisation funding, carbon market development, sustainable aviation fuel, energy-cost relief, and nuclear energy feasibility studies.
A centrepiece is the new S$800 million Decarbonisation Research, Innovation and Enterprise (RIE) Grand Challenge. Announced during the Ministry of Trade and Industry’s Committee of Supply debate, the fund will support low-carbon technology development across the power and industry sectors over five years, as confirmed in the EDB round‑up.
Benedict Chia, Director‑General (Climate Change) at the National Climate Change Secretariat, said, “Singapore is committed to advancing high-integrity carbon markets as a key pillar of both global climate action and sustainable development.” The statement accompanied the launch of the Singapore Carbon Markets Programme with the World Bank Group, which aims to strengthen carbon market infrastructure, including interoperable registries and digital monitoring.
On aviation, the Civil Aviation Authority of Singapore (CAAS) delayed the sustainable aviation fuel (SAF) levy rollout. Director‑General Han Kok Juan stated Singapore remains “firmly committed to aviation decarbonization” but is taking a “pragmatic pause,” with the levy now applying to tickets sold from October 1, 2026, for flights departing January 1, 2027. The target remains for all departing flights to use at least 1% SAF from 2026, as outlined in the Singapore Sustainable Air Hub Blueprint.
To cushion businesses from energy price volatility, the government expanded the Energy Efficiency Grant to all sectors, raised the corporate income tax rebate to 50% for Year of Assessment 2026, and rolled out a S$1 billion support package, according to the Business Times.
Meanwhile, Singapore is advancing its nuclear energy assessment. The National Environment Agency (NEA) will commission three studies on nuclear safety frameworks and environmental impacts. The Ministry of Sustainability and the Environment announced that an International Atomic Energy Agency (IAEA) Integrated Nuclear Infrastructure Review Phase 1 Mission will commence in 2027. “Singapore has not made a decision on the adoption or deployment of nuclear energy,” the ministry stated, but will continue building capabilities “as part of efforts to study all potential pathways for decarbonisation.”
References
EDB Q1 2026 Sustainability Round‑Up, 9 Apr 2026. https://www.edb.gov.sg/en/business-insights/insights/latest-in-singapores-sustainability-scene-that-businesses-should-know-a-round-up-from-january-to-march-2026.html
Budget 2026: New S$800 million decarbonisation challenge, EDB, 2 Mar 2026. https://www.edb.gov.sg/en/business-insights/insights/budget-2026-new-s800-million-decarbonisation-challenge-to-support-research-and-innovation-in-low-carbon-technologies.html
Singapore Partners with the World Bank Group to Launch Singapore Carbon Markets Programme, NCCS, 20 May 2026. https://www.nccs.gov.sg/singapore-partners-with-the-world-bank-group-to-launch-singapore-carbon-markets-programme/
Singapore delays SAF levy rollout to 2027, AeroTime, 28 Mar 2026. https://www.aerotime.aero/articles/singapore-delays-saf-levy-middle-east-conflict
Singapore to raise corporate tax rebates from 40% to 50%, widen energy grant to ease Iran war impact, Business Times, 7 Apr 2026. https://www.businesstimes.com.sg/singapore/economy-policy/singapore-raise-corporate-tax-rebates-40-50-widen-energy-grant-ease-iran-war-impact
NEA To Commission Studies On Nuclear Safety Frameworks, NEA, 26 Mar 2026. https://www.nea.gov.sg/media/news/news/index/nea-to-commission-studies-on-nuclear-safety-frameworks-and-international-best-practices
Media Release on Integrated Nuclear Infrastructure Review (INIR) Phase 1 Mission, MSE, 19 May 2026. https://www.mse.gov.sg/latest-news/media-release-on-integrated-nuclear-infrastructure-review–inir–phase-1-mission/
