This Update is relevant to businesses in Singapore that purchase renewable energy certificates (“RECs“) to support renewable electricity or market-based Scope 2 emissions claims. Under the updated Singapore Standard 673: Code of Practice for Renewable Energy Certificates (“SS 673“), such claims should be supported by RECs linked to renewable electricity physically supplied to the Singapore power grid, namely domestic RECs and qualifying cross-border electricity trade RECs (“CBET RECs“).
On 27 October 2026, the Ministry of Energy, Trade and Industry (“METI“), the Energy Market Authority, and Enterprise Singapore announced that Singapore has updated SS 673 to provide greater clarity on how different types of RECs can be used to support claims of renewable energy usage.
The updated SS 673 distinguishes between:
- Domestic RECs: These are RECs from renewable electricity, such as solar energy, which is: (i) produced in Singapore; and (ii) supplied to the Singapore power grid;
- CBET RECs: These are RECs which: (i) come from approved low-carbon electricity import projects associated with overseas renewable energy installations; and (ii) contractually supply electricity to Singapore via a physical interconnection to the Singapore power grid; and
- Other overseas RECs: These are RECs from renewable electricity from other overseas sources which: (i) is produced overseas; and (ii) does not result in physical electricity flows into Singapore.
Importantly, the updated SS 673 clarifies which of the above RECs may be used to support market-based Scope 2 claims, which are claims that: (i) an organisation uses renewable electricity; and (ii) are supported by contractual instruments such as RECs. In this regard:
- Market-based Scope 2 claims should be supported by RECs that are linked to renewable electricity that is supplied to the Singapore power grid, i.e. domestic RECs and CBET RECs only; and
- RECs from other overseas renewable energy projects that do not supply electricity into Singapore should not be used to make market-based Scope 2 claims or to support claims of renewable electricity use in Singapore. However, RECs generated from within the UN geoscheme for Southeast Asia may still be purchased and used to support renewable energy development and regional decarbonisation efforts.
For context, SS 673 was first launched in 2021. Among other things, it: (i) supports the credible and consistent use of RECs by setting out good practices for energy users in their claims on renewable energy use and their environmental attributes; and (ii) establishes a framework for improving the integrity of the measurement, reporting, and verification requirements for the issuance and management of RECs.
Businesses that purchase or use RECs should consider:
- Reviewing existing REC arrangements to assess whether RECs currently used to support market-based Scope 2 claims in Singapore meet the updated SS 673 requirements;
- Reviewing sustainability reporting and environmental claims to ensure that statements regarding renewable electricity use accurately reflect the type and origin of the RECs being relied upon; and
- Reviewing energy procurement arrangements to ensure that REC purchase agreements, power purchase agreements, and electricity supply arrangements appropriately address the source, ownership, transfer, and retirement of RECs, particularly where renewable electricity is supplied through cross-border electricity imports.
Click on the following link for more information:
- METI Press Release titled “Updated Singapore Standard sets clearer guidelines for companies using Renewable Energy Certificates” (available on the METI website at www.meti.gov.sg)
If you have any queries on the above, please reach out to our team set out on this page.
For regional Sustainability, Energy and Resources matters, please see Rajah & Tann Asia’s Sustainability Practice and Energy & Resources Practice for more information.
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