Singapore has launched a S$143 million industrial decarbonisation funding initiative, including R&D grants, technology scale-up funding and a Jurong Island testbed to accelerate low-carbon industrial solutions.
Singapore has launched a S$143 million Industrial Decarbonisation Funding Initiative to accelerate the development and commercialisation of low-carbon technologies, helping industrial companies reduce emissions while maintaining competitiveness. Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong announced the initiative at the Singapore Industry Decarbonisation Forum 2026.
Of the total funding, S$100 million will support a new programme called Decarbonisation Research for Industry, Ventures, and Enterprise (DRIVE). The initiative will fund company-led research and development projects, allowing businesses to collaborate with public research institutions to develop solutions for industrial emissions. Eligible projects can receive government support covering up to 75% of research and development costs, with applications opening on today.
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The funding forms part of Singapore’s broader S$800 million Decarbonisation Grand Challenge under its Research, Innovation and Enterprise 2030 plan. The programme aims to support promising technologies throughout the innovation process, from early-stage research and development to demonstration and commercial deployment.
A further S$65 million will be provided through the Low-Carbon Energy Research Programme’s scale-up grant initiative to support five projects that have already demonstrated progress. The funding is intended to help these technologies move into real industrial environments and advance towards commercial application.
Singapore is also investing S$62 million in a Low-Carbon Technology Translation Testbed on Jurong Island. The facility, being developed at the Agency for Science, Technology and Research’s Institute of Sustainability for Chemicals, Energy and Environment, will allow companies to test and demonstrate low-carbon technologies without having to build their own industrial testing infrastructure. Initial industrial users include IHI Corporation, Amogy and Metha8, which are collaborating on carbon utilisation and low-carbon hydrogen technologies.
The government is also advancing the use of biomethane, a renewable gas produced from organic waste, as another potential lower-carbon energy source. Three power generation companies have been appointed as aggregators to import biomethane and coordinate supply and demand, with imports expected to begin by the end of 2028.
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Industry accounts for approximately 65% of Singapore’s national emissions, making industrial decarbonisation a major component of its climate strategy. The country aims to achieve net-zero emissions by 2050 while preserving the competitiveness of its manufacturing and industrial sectors.
Through research funding, scale-up grants and shared testing infrastructure, Singapore is seeking to accelerate the adoption of practical low-carbon technologies and strengthen its position in industrial decarbonisation innovation.