Singapore Targets $700 Billion Nature Gap

Why this is here: City Developments Limited secured a S$400 million (US$312 million) sustainability-linked loan tied to nature key performance indicators from its TNFD report, earning a discount after hitting initial targets.

Singapore’s Ambassador for Climate Action, Ravi Menon, on Monday outlined a plan to address the US$700 billion annual shortfall in nature-based solutions funding. The country aims to build a regional carbon market focused on integrity, demand, and supply. Southeast Asia holds roughly 30% of the world’s potential for these solutions, with Indonesia, Cambodia, Malaysia, and the Philippines as key areas.

MSCI estimates the nature-based carbon credit market could reach US$200 billion by 2050, but Menon identified three barriers: the lack of pricing for nature’s value, difficulty measuring outcomes, and challenges structuring viable projects. Singapore is investing S$15 million (US$11.7 million) in improved carbon-stock estimates for regional mangroves, forests, and peatlands.

The country has also committed S$76 million to nature-based carbon credits from projects in Ghana, Peru, and Paraguay. While progress is being made, the article notes the most significant obstacle remains creating investment-ready projects, not a lack of investor interest. Work continues to refine standards and unlock capital.