Singapore Leverages Carbon Capture to Mitigate Emissions; Faces Economic and Technical Challenges

Singapore aims to transform Jurong Island into a sustainable industrial hub through carbon capture and storage (CCS) technologies, targeting a reduction of at least two million tonnes of CO2 annually by 2030. This initiative aligns with global strategies to combat climate change, as highlighted by the Intergovernmental Panel on Climate Change (IPCC), which underscores the necessity of CCS technologies to achieve net-zero emissions by 2050 and limit global warming to 1.5 degrees Celsius.

Globally, there are around 40 operational CCS projects, with 25 under construction and over 300 in planning stages, capturing about 45 million tonnes of CO2 annually—just 0.1% of global emissions. However, Singapore’s planned contribution would represent less than 5% of its annual emissions, totaling 57.7 million tonnes in 2021.

Despite its potential, scaling up CCS technologies faces significant hurdles. High costs due to complex design and customization needs at each site make CCS a less economically attractive option compared to rapidly declining costs for wind and solar energy. A study by the National Climate Change Secretariat and the Economic Development Board highlighted that capturing carbon from industrial sources in Singapore costs about US$85 per tonne of CO2. Additionally, transporting and storing CO2 involves varying costs, and extensive monitoring is required to prevent leaks.

The carbon tax in Singapore, currently at $25 per tonne, is set to increase to between $50 and $80 by 2030, which may still not fully offset the costs associated with CCS. This economic landscape, coupled with technical challenges and the need for long-term responsibility for stored carbon, paints a complex picture for the future of CCS in Singapore and globally.

As Southeast Asia grapples with distinguishing between using CCS for fossil fuel expansion versus genuine climate solutions, regulatory frameworks and industry assurances will play critical roles in ensuring the integrity and effectiveness of CCS technologies. The regional dynamics, including the export of CO2 and potential resistance from environmental groups, echo challenges similar to those faced in the plastic waste trade, requiring robust international cooperation and responsible management to harness the full potential of CCS in mitigating climate change.