Singapore may be small, but it can still punch above its weight on the climate change front by helping other countries cut their emissions, said Mr Henry Kwek (Kebun Baru) in Parliament yesterday.

Singapore can offer trusted carbon offset solutions that are based throughout the world, he said during a debate over the motion calling for bolder climate action in the country.

"If Singapore or our government-linked companies can come in in a big way...we can shape this nascent industry which currently operates without robust standards," Mr Kwek added.

Speaking after a robust debate in the House over how Singapore's forests and natural habitats should be better protected amid urban development needs, Mr Kwek acknowledged that Singapore is probably "one of the least efficient countries to be a carbon sink".

Ecosystems like forests are considered carbon sinks, as they absorb planet-warming carbon dioxide from the atmosphere.

"But I strongly feel we can do more to live up to our moral responsibility and go beyond halving our emissions," he said, pointing to how Singapore could be a hub for the trade in carbon offsets.

Singapore had earlier set a 2050 target to halve the amount of emissions it produces from its 2030 peak.

Examples of carbon offset projects include reforestation efforts or the replacement of coal plants with renewable energy sources. Their main goal is to either capture carbon dioxide or prevent the emission of the heat-trapping gas into the atmosphere.

Companies are usually set up to undertake these projects.

But the emission reductions from such projects have to be validated - necessitating another form of carbon service - as they establish the basis for the calculation of carbon credits, which are used in carbon trading, a third type of carbon service.

Carbon trading essentially treats carbon as a commodity that can be bought and sold between less and more pollutive firms.

These efforts will also create good, green jobs for Singaporeans, Mr Kwek said.

"We can complement this carbon offset industry by developing Singapore into a leading and trusted professional services hub for emissions and carbon accounting," he said.

By encouraging the leading standards bodies to set up centres of excellence to shape and promote standards, in partnership with our accounting and professional services firms as well as tertiary institutes, "green-collar jobs" can be created .

The motion to accelerate and deepen efforts against climate change was tabled by six MPs.

In response, Minister for Sustainability and the Environment Grace Fu said Singapore will promote green growth by pursuing new opportunities in existing sectors and new sectors.

"Global investors are increasingly sensitised to environmental, social and governance issues, and the right allocation of capital will support sustainability projects and unlock green growth opportunities and good jobs for Singaporeans," said Ms Fu.