2026 outlook: What’s next for the environment – and the top stories of 2025
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The beverage container return scheme is slated to launch on April 1, 2026. Consumers will pay an extra 10 cents for bottled and canned drinks ranging from 150ml to 3 litres, but will receive a full refund of the deposit when they return the empty containers at designated return points.
PHOTO: LIANHE ZAOBAO
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SINGAPORE – The year 2025 was a challenging year for the environment.
Geopolitics eroded many national commitments to tackle climate change, even as climate disasters pummelled many countries around the world, including in South-east Asia.
But despite the gloom plaguing the environment sector, some bright sparks have emerged.
The Straits Times highlights some areas to look out for in 2026, and several key developments in 2025.
Developments in clean energy
Singapore has not wavered on its earlier commitment to have its power sector reach net-zero emissions by 2050
Following a number of key moves on the energy front in Singapore in 2025, it is likely that there will be more developments in the sector in the year ahead.
The energy sector accounts for about 40 per cent of Singapore’s total emissions.
Singapore has not yet made a decision on nuclear energy, but is monitoring developments on this front – especially for small modular reactors (SMRs). In 2025, the Republic made some progress in this area.
For instance, in July, a nuclear research and safety institute was launched at the National University of Singapore
In October, the Republic signed agreements with various institutes in the US with nuclear expertise to facilitate information exchange.
Dedicated nuclear teams have also been created
Progress could also be made in importing clean energy from the region.
Singapore is looking to import 6 gigawatts (GW) of electricity
Dr Tan See Leng, Minister-in-charge of Energy and Science & Technology, had said that renewable energy imports hold the most promise
Singapore in April appointed Singapore Energy Interconnections (SGEI)
With SGEI’s role to invest in, develop, own and operate interconnectors, it could help to increase investor confidence and attract new funding to help accelerate the transition.
This is because there is currently low appetite among financial institutions to fund such infrastructure, largely due to the perceived high risks and large upfront costs.
But even as the country looks for cleaner energy sources, it is likely to continue to rely on natural gas, a fossil fuel that now makes up about 95 per cent of Singapore’s fuel mix.
Carbon capture solutions, which refer to technology that can take planet-warming carbon dioxide out of the atmosphere for storage, could help to cut emissions from power plants.
By 2026, Singapore will be launching a pilot to test the viability of carbon capture technologies at its waste-to-energy plants.
Smart electricity meters for all households by 2026
The nationwide deployment of smart electricity meters – which tell users how much power they consume and when – is expected to be completed by the end of 2026.
Such meters allow consumers to track their energy consumption patterns and find ways to reduce their electricity usage. They could also reap cost savings by subscribing to time-of-use plans, instead of buying electricity from utility operator group SP Group at the regulated tariff.
Such plans offer different rates
As at Dec 10, SP Group said it has installed more than 1.3 million smart electricity meters for residential premises – which is at least 80 per cent of the households in Singapore.
Launch of beverage container return scheme
Amid falling domestic recycling rates
Consumers will pay an extra 10 cents for bottled and canned drinks ranging from 150ml to 3 litres, but will receive a full refund of the deposit when they return the empty containers at designated return points.
The scheme will run for seven years until March 31, 2033.
More than 1,000 return points will be located in supermarkets and other communal areas.
The launch of the scheme will come after several delays. NEA had said in 2020 that the return scheme for drink containers would be implemented by 2022. But, that year, NEA said the scheme’s proposed start date would be by mid-2024.
In July 2024, it was reported that the scheme was delayed again
Carbon tax hike
The Republic’s carbon tax is set to rise from the current rate of $25 per tonne of greenhouse gases emitted, to $45 per tonne in 2026. By 2030, the tax rate could be $50 to $80 per tonne.
A carbon tax puts a price on the release of planet-warming carbon dioxide, which is emitted through the burning of fossil fuels and industrial processes.
By making fossil fuel use costlier, a carbon tax incentivises large emitters to switch to cleaner energy, improve efficiency or adopt low-carbon technologies.
Singapore’s carbon tax first went up from $5 per tonne of emissions between 2019 and 2023, to $25 per tonne in 2024 and 2025.
There are roughly 50 carbon tax-paying facilities in Singapore, mainly from the manufacturing, power, waste and water sectors. These emitters are responsible for about 70 per cent of total national emissions.
However, ST reported in June that tax allowances, which act like a carbon tax “discount”, given to some emitters here could undermine the effectiveness
In September, several environment groups in Singapore wrote an open letter
Coastal protection Bill to be introduced
A new coastal protection Bill is expected to be introduced in 2026 to spell out the responsibilities of stakeholders involved in coastal protection.
National water agency PUB is studying how coastlines at different parts of the country can be best protected from higher water levels.
ST PHOTO: LIM YAOHUI
This comes amid other efforts to protect Singapore’s coastlines from rising sea levels. National water agency PUB is studying how coastlines at different parts of the country can be best protected from higher water levels.
For example, site-specific studies on Sentosa island and the nation’s south-west coast are also expected to begin by 2026
The first study commenced in the city-east coast stretch of Singapore’s coastline in 2021, and proposed solutions,
However, apart from governmental efforts, there are seaside businesses and private properties that will need to become the second line of defence. The new Bill will pave the way for their involvement in coastal protection.
Singapore’s sea level is projected to rise
Reinforcements to protect the shore at East Coast Park. A new coastal protection Bill is expected to be introduced in 2026 to spell out the responsibilities of stakeholders involved in coastal protection.
PHOTO: LIM YAOHUI
By mid-2026, PUB will also launch a code of practice
Building owners and developers will be able to draw ideas from a separate guidebook on how to improve the flood resilience of their premises.
A look back at 2025
Original farming goal scrapped
Singapore in November dropped its “30 by 30” local production goal and replaced it with new targets
The announcement came after a year-long review of the goal for Singapore to, by 2030, locally produce 30 per cent of the country’s nutritional needs, which include fish, eggs and vegetables.
The original goal was announced in 2019 prior to the Covid-19 pandemic, which later impacted the sector with associated supply chain breakdowns, despite previously high investor confidence in innovative farming techniques.
Since then, local farms have been plagued with a series of setbacks, from production declines to farm closures – especially for high-tech greens and aquaculture farms.
With worsening climate impacts and geopolitical circumstances threatening food supply, local farms are important for Singapore – which imports more than 90 per cent of its food – to safeguard its food security.
Vegetables at Cropciti, a pesticide-free farm in Neo Tiew. To better support farms, the Singapore Food Agency is rolling out various initiatives, including a feasibility study on a multi-tenant facility where multiple types of farms can operate under one roof and share resources.
PHOTO: AZMIN ATHNI
To better support farms, the Singapore Food Agency is rolling out various initiatives, including a feasibility study on a multi-tenant facility where multiple types of farms can operate under one roof and share resources.
Domestic recycling rate hits all-time low
Singapore’s household recycling rate in 2024 dipped to a record low
The dip was mainly due to less paper and cardboard waste being recycled, according to NEA.
This decline in paper recycling was due to several factors, including the growing amounts of such waste generated, as well as weakened business incentives to recycle them due to high collection costs.
The Government is working with the paper recycling industry to better support it, given the weakening economics of the trade.
One solution being studied is the use of metal cages to collect used cardboard boxes. If implemented, these cages would mark another type of infrastructure to segregate Singapore’s recyclables, which have typically been commingled in blue recycling bins.
More partnerships on carbon credits
Singapore in 2025 secured its first tranche of carbon credits
In September, Singapore established contracts for carbon credits generated from nature restoration and protection projects in Ghana, Paraguay and Peru. This also marks the first time the island nation is sourcing for carbon credits from nature-based solutions.
One carbon credit represents one tonne of carbon dioxide that is either removed from the atmosphere, such as through restoration efforts, or prevented from being released, such as when a forest is saved from the axe.
Singapore has estimated that it would use high-quality carbon credits to offset about 2.5 million tonnes of emissions a year from 2021 to 2030.
The Republic has also inked 10 deals on sourcing for carbon credits from all over the world, with the latest agreement with Mongolia
As at early December, Singapore has signed such deals – dubbed implementation agreements – with Ghana, Papua New Guinea, Chile, Bhutan, Peru, Rwanda, Paraguay, Thailand, Vietnam and Mongolia.
While buying carbon credits can help offset some firms’ planet-warming emissions to meet climate commitments, experts have said that carbon trading could also help companies save money and boost investments in climate-friendly projects in developing countries.
Singapore moves on climate action
Singapore in February submitted to the UN new targets for its climate commitments under the Paris Agreement.
It has pledged to reduce
This new climate target for 2035 puts Singapore on track to reach net-zero emissions
Progress has also been made on raising funds to invest in sustainable development, through blended finance initiatives. This involves using capital from public or philanthropic sources as a catalyst to spur the private sector to put in funds for climate projects.
A blended finance initiative was launched by Singapore’s central bank in 2023 to bring together public, private and philanthropic capital to help finance Asia’s green transition, with the aim of eventually raising up to US$5 billion (S$6.5 billion) from these sources.
In September, one of the three funds secured US$510 million
On adaption – which refers to actions that help reduce people’s vulnerability to climate impacts – Singapore announced in August that it will implement coastal protection measures
Such structures to help preserve Singapore’s south-eastern coastline – one of its lowest-lying areas – will be built from the 2030s to protect people and infrastructure there from rising seas.
Correction note: The story has been edited for clarity.
