Singapore’s First Article 6 Carbon Credit Tender Draws $223 Million Top Bid

Global commodities trader Trafigura has emerged as the highest bidder in Singapore’s first public tender for Article 6-aligned nature-based carbon credits, offering S$299.19 million ($223 million) for an undisclosed volume, as the city-state seeks to complement domestic climate action with international offsets.

The government’s request for proposals closed on Feb. 14 and attracted 17 bidders, including major commodities traders and energy firms. “Trafigura has offered to supply high-integrity carbon credits from our global portfolio of nature-based removals,” a spokesperson from the commodities firm said on Wednesday, in response to queries on proposal details.

Other major bids to supply correspondingly adjusted nature-based credits through 2031 include Mercuria Asia Resources’ S$206.65 million for 5.36 million metric tons at S$38.52/mt, with an alternate offer of S$35.41/mt, with detailed pricing depending on the delivery year and project. Singapore-based DNZ ClimateTech proposed S$200 million for 5 million mt, averaging S$40/mt.

Singapore aims to cut emissions to 60 million mtCO2e by 2030, using international credits to help meet its climate targets. The country expects to use 2.51 million mt of internationally transferred mitigation outcomes annually from 2021 to 2030, which must comply with Article 6 rules to prevent double counting in emissions reductions. Price signals from early Article 6-aligned deals suggest a clear premium compared to credits traded in the voluntary markets. Switzerland’s Klik Foundation, which manages the country’s decarbonization efforts, paid an average price of CHF 27/mt ($30/mt) for its Article 6-aligned credits in 2023, as reported by OPIS.

Carbon Credit Prices Across Voluntary and Compliance Markets
Source: Average bid price data available*, OPIS APAC Carbon Report,
Global Carbon Offsets Report (Feb. 20, 2025)

Disclosed average per-unit bid prices, excluding outliers, ranged from S$25 to S$55/mt, higher than offsets eligible under the CORSIA aviation offsetting scheme, which OPIS last assessed at $18.25/mt. This range also surpasses prices in regional compliance markets such as Australia, New Zealand and South Korea ($6.70 to $35.90/mt). In the voluntary market, OPIS priced 2025 REDD+ credits at $12.13/mt and blue carbon credits at $28.24/mt.

Each bid could include a portfolio of projects with pricing quoted in Singapore dollars per mtCO2e for each annual delivery tranche, according to tender documents seen. Singapore has signed legally binding agreements with Ghana and Papua New Guinea for such transfers and has substantially concluded talks with Bhutan, Paraguay and Vietnam.

Carbon Solutions Services submitted the highest disclosed per-unit price at S$55/mt for 500,000 mt, offering credits from Ghana and Paraguay backed by Temasek’s GenZero platform. Malaysia’s Carbon Trace submitted the lowest disclosed price of S$25/mt for 1 million mt.

Other bids include U.S. firm Native, a public benefit corporation, which bid S$190.99 million for 5.4 million mt, with tiered pricing from S$26.41 to S$44.07 per mt over five years. Energy major Shell Eastern Trading submitted a S$34.04 million bid pending management approval, while PetroChina International (Singapore) offered S$21.84 million for 500,000 mt, with prices escalating from S$38.88 to S$49.88/mt for 2027-2029 delivery.

Some bidders structured pricing around Singapore’s carbon tax, which allows liable companies to offset up to 5% of emissions with international credits from 2024. Climate Asset Facility offered S$73.15 million for 1.75 million mt, proposing a 50% discount to the projected tax rate, starting at S$22.50/mt in 2027 and rising to S$40/mt by 2031, plus a S$13.50/mt fee for corresponding adjustments.

The tender called for credits from approved methodologies, including forest management, grassland sustainability and wetland restoration under Verra, ART-TREES and Gold Standard. The National Climate Change Secretariat said the total procurement volume will be decided after proposal assessments. Partial offers are expected to be considered unless bidders specify otherwise.

Singapore is positioning itself as a carbon trading hub, with the sector projected to create up to $5.6 billion in economic value. Successful bidders must provide a 5% security deposit and could face penalties of up to S$80/mt if they fail to deliver credits. Bids remain valid for 180 days.

Reporting by Melissa Goh, mgoh@opisnet.com
Editing by Mei-Hwen Wong, mwong@opisnet.com 

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