Singapore’s green transformation is unlocking new investment opportunities in clean energy, sustainability, and green finance. Here’s how you can ride the green wave.

Singapore has emerged as one of Asia’s most advanced and credible sustainability leaders. Recognised by the World Economic Forum’s 2023 Energy Transition Index as one of the few economies balancing energy sustainability, security, and equity, Singapore is proving that economic growth and environmental responsibility can go hand in hand.

Backed by robust policy frameworks, a forward-looking financial ecosystem, and strong private-sector participation, Singapore is fast becoming a hub for clean energy innovation and ESG investment. For investors, the nation’s push toward net-zero emissions by 2050 presents opportunities across renewable energy, green infrastructure, and sustainable finance—all of which are poised for long-term growth.

The Road to Net-Zero: Solar Power and Energy Imports

With more than 90% of its electricity generated from natural gas, Singapore’s energy mix has traditionally been carbon-intensive. The power sector contributes about 40% of the country’s total emissions, according to the Energy Market Authority (EMA). Recognising this, Singapore has committed to a net-zero target by 2050, guided by its Green Plan 2030 and the Four Switches Strategy that diversifies its energy sources across:

1. Solar energy: The nation’s most viable renewable resource, targeted to reach 2 gigawatt-peak (GWp) of installed capacity by 2030, enough to power 350,000 households.
2. Regional power grids: Plans to import up to 4 GW of low-carbon electricity by 2035, or roughly 30% of projected national demand, from countries like Vietnam, Indonesia, and Cambodia.
3. Low-carbon alternatives: Including hydrogen and carbon capture technologies.
4. Natural gas: A transitional fuel to ensure energy reliability while greener technologies scale up.

Growing Contribution of Solar PV Systems to Total Electricity Generation (by Technology) 

Source: Energy Market Authority, September 2025

Solar PV capacity has expanded rapidly—from just 2.2% of total electricity generation in 2019 to 8.4% in 2024—driven by projects like SolarNova, a joint initiative by the Housing & Development Board (HDB) and the Economic Development Board (EDB). The programme aims to generate 650 GWh of clean energy annually, supporting Singapore’s transition to a sustainable energy ecosystem.

The Green Plan 2030: Blueprint for a Low-Carbon Economy

Launched in 2021, the Singapore Green Plan 2030 serves as the nation’s comprehensive strategy for sustainable growth. It covers five pillars—City in Nature, Energy Reset, Sustainable Living, Green Economy, and Resilient Future—and is already reshaping sectors from energy and infrastructure to transport and finance.

Key targets include:

• Greening 80% of buildings by gross floor area by 2030.
• Phasing out diesel cars and ensuring all new vehicle registrations are cleaner-energy models by 2030.
• Installing 60,000 EV charging points nationwide.
• Expanding renewable electricity imports and increasing solar capacity.

These initiatives are transforming Singapore to become more sustainable, and for businesses and investors to participate in the green transition.

A Thriving Green Finance Ecosystem

Singapore’s financial sector is the cornerstone of its sustainability strategy. The country has positioned itself as Asia’s green finance hub, enabling the flow of capital into sustainable projects through instruments such as green bonds, sustainability-linked loans, and blended finance initiatives.

The introduction of the Green Bond Framework (GBF) in 2022 allows the public sector to issue bonds specifically for financing environmentally friendly projects in energy, water, and waste management. The government plans to issue up to S$35 billion in green bonds by 2030, with the inaugural S$2.4 billion sovereign green bond marking a regional milestone.

Green Bonds Issuance 

Source: Asian Bonds Online, September 2025. (FCY – Foreign currency denominated green bonds, LCY – Local currency denominated green bonds)

Singapore also leads ASEAN in green financing, accounting for about 60% of the region’s cumulative issuance of green and sustainability-linked bonds and loans, according to DZ Bank.

These efforts are reinforced by initiatives such as the Finance for Net Zero Action Plan and Financing Asia’s Transition Partnerships (FAST-P), which aim to mobilise billions of dollars toward decarbonisation and climate resilience in the region.

Technology and Innovation: The Engine of ESG Growth

Singapore’s ESG ecosystem thrives on innovation. Ranked among the top five nations globally most prepared to adopt green technologies by UNCTAD, the country is actively leveraging AI, IoT, and data analytics to improve environmental efficiency.

• Floating solar farms like the one at Tengeh Reservoir demonstrate how Singapore is overcoming land constraints to scale renewables.
• AI-powered energy management systems and IoT-enabled smart grids enhance efficiency across industrial and commercial buildings.
• GreenTech startups benefit from supportive programmes such as Startup SG and the Enterprise Development Grant, fostering breakthroughs in energy storage, waste recycling, and carbon accounting.

This technology-driven approach is helping transform Singapore into a regional climate tech hub, attracting venture capital and corporate R&D investment alike.

Sectors Poised to Benefit from Singapore’s Green Transition

Singapore’s clean energy shift is catalysing growth across multiple industries:

• Renewable Energy: Companies involved in solar, hydrogen, and waste-to-energy projects—such as Sembcorp Industries and Keppel Corp—are expanding their clean energy portfolios across Asia.
• Waste Management: Firms like Enviro-Hub Holdings and Reclaims Global are driving innovation in recycling and waste-to-energy technologies, helping Singapore reach its 70% recycling target by 2030.
• Green Transportation: EV adoption is accelerating, supported by incentives and infrastructure rollouts under the EV Early Adoption Incentive (EEAI) and Electric Vehicles Charging Act.
• Green Cities and Construction: Developers are capitalising on green financing to build sustainable buildings, guided by the Green Building Masterplan.
• Carbon Services: Startups such as WealthGreen are pioneering digital carbon credit trading, cementing Singapore’s position as a regional carbon trading hub.

EV Registrations on a Rise

Source: Land Transport Authority, September 2025

Policy and ESG Regulation: Raising the Bar for Accountability

Singapore’s regulatory environment is strengthening the foundation for ESG adoption. The Singapore Exchange (SGX) has made climate reporting mandatory for all listed companies from 2024, aligning disclosure requirements with global sustainability standards.

These frameworks promote corporate transparency across the three ESG pillars:

• Environmental: Emission tracking and resource consumption disclosures.
• Social: Labour practices, diversity, and community engagement.
• Governance: Board diversity, executive compensation, and shareholder rights.

This strong ESG governance enhances investor confidence and positions Singapore-listed companies as credible long-term investment candidates for sustainability-focused portfolios.

How Investors Can Participate: ESG and Clean Energy Opportunities

Singapore’s sustainability revolution is creating investable opportunities in both public and private markets. From renewable infrastructure and green bonds to listed companies driving the transition, the opportunity set is expanding rapidly.

For retail investors, accessing this global megatrend can be done through diversified thematic portfolios that capture companies across clean energy, sustainable materials, and environmental technology.

Invest in the Future with Syfe’s ESG & Clean Energy Portfolio

If you’re looking to invest in the transition to a low-carbon future, Syfe’s ESG & Clean Energy portfolio offers an efficient and diversified way to gain exposure to the world’s leading clean energy and sustainability innovators.

This managed portfolio invests in clean energy ETFs and ESG-focused index funds, spanning sectors such as renewables, green infrastructure, and environmental technology, aligning with the global shift toward sustainability. It currently offers a 5-year average annual return of 5.69% and year-to-date return of 17.3% (as of October 2025).

Build a portfolio that aligns your values with long-term growth potential.
Start investing in a sustainable future with Syfe ESG & Clean Energy.

Read More: 

ESG Investing: Investing For Change
Syfe Themes: How We Built 4 Thematic Portfolios That Help You Invest In The Future

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future returns. Investors should conduct their own due diligence or consult a financial adviser before making investment decisions. Syfe Pte Ltd. is a digital investment platform licensed by the Monetary Authority of Singapore (“MAS”). Full disclaimers and terms & conditions are available at www.syfe.com. This advertisement has not been reviewed by the MAS.