Cross-Border Electricity Trade moves from concept to bankable path: what the Singapore/Australia CBET Framework means

Australia and Singapore have signed the Cross-Border Electricity Trade Framework (CBET Framework), turning years of policy intent into a practical pathway. This sets a framework for investing in, permitting, building and operating long-distance subsea power cables between the countries, and associated clean generation.

The CBET Framework was announced with the Australia-Singapore Comprehensive Strategic Partnership 2.0 for 2025-35 (CSP 2.0), which strengthens the first CSP set a decade ago. The CSP 2.0 places energy transition at the centre of the bilateral agenda.

Together, they signal a step-change in regional energy connectivity, aligned with the ambitions of an ASEAN Power Grid and Singapore’s strategy to import 6GW of low‑carbon electricity by 2035.

Key takeaways

• The CBET Framework sets out key regulatory approvals and clear undertakings by the governments with respect to customs and vessel movements, subsea cable protection, governance and dispute resolution.
• Critically, the CBET Framework provides a pathway for the recognition of credible renewable energy certificates (RECs) and embedded emissions accounting, to underpin offtake and green claims.
• For energy market participants across Australia, Singapore and the wider ASEAN region, the message is significant: a roadmap for implementing more bankable cross-border offtake, diversified portfolios, new merchant and contracted products linked to certified renewable electricity, and a clearer line of sight on approvals sequencing.
• The CBET Framework also sets the bar on execution discipline: engagement with First Nations stakeholders and maritime users, subsea route risk, cyber and critical infrastructure obligations, and harmonised REC and carbon accounting will be decisive for bankability.

The journey to the CBET Framework - and why it matters

The CBET Framework was unveiled at the 10^th Annual Leaders’ Meeting on 8 October 2025, and is the next major deliverable under the Australia-Singapore Green Economy Agreement signed in October 2022. It is a cornerstone of the ‘Transitioning to Net-Zero’ pillar of CSP 2.0, and codifies 10 principles to guide the development of cross-border electricity trade that emphasise economic benefits, energy security, decarbonisation, regulatory harmonisation, standards compatibility, governance and regional partnerships.

ASEAN electricity demand is projected to rise by over 60% in the next 25 years. Power generation accounts for roughly 40% of current regional emissions. Accessing and transmitting renewable energy resources are therefore key components to the region meeting decarbonisation targets. For regions such as Singapore which have limited renewable potential, this necessitates increasing the capacity of regional interconnectors, which have the potential to grow to approximately 18GW in Southeast Asia by 2040.

The CBET Framework recognises the scale of the regional opportunity and imperative. It points to successful precedents in Europe and North America, and Australia’s own integration of state-based grids into the National Electricity Market, as relevant lessons for market design, governance and incremental reform.

Importantly, the CBET Framework moves beyond principles into implementation detail. It sets out:

• How to streamline permitting with clear lead-agency touchpoints, supported in Australia by the Major Projects Facilitation Agency and, in Singapore, by the Energy Market Authority’s staged import licensing pathway from Conditional Approval through to Importer Licence, allowing for a better understanding of project timelines.
• Customs and border facilitation for electricity trade, including electronic declarations and payments.
• End-to-end support for subsea power cable activities - from surveys and route approvals through installation, maintenance and repair - alongside protection measures such as cable corridors, geospatial alerts and publication of routes on nautical charts, consistent with United Nations Convention on the Law of the Sea (UNCLOS).
• Governance expectations, including early and regular stakeholder engagement (with specific recognition of Aboriginal and Torres Strait Islander peoples), transparency and recourse to existing trade and maritime dispute mechanisms.
• Workstreams to establish credible cross-border RECs and interoperable embedded emissions accounting aligned with the United Nations Framework Convention on Climate Change and Paris Agreement obligations, avoiding double counting and non-tariff barriers, and facilitating trade in green downstream goods.
• Knowledge sharing and regional collaboration to maximise the benefits of cross border electricity trade and accelerate the realisation of the ASEAN Power Grid, with indicative scope for scientific R&D on areas of mutual interest within cross border electricity trade and clean energy development.

In Singapore:

• Expanded import capacity: The trajectory toward the target of 6GW of low‑carbon imports by 2035 is reinforced, with a clear pipeline from Conditional Approval to Importer Licence for projects meeting technical, commercial and environmental benchmarks.
• Grid integration and landings: Requirements for early, coordinated consultations with SP Group, planning and marine authorities, and infrastructure co‑users are formalised, improving project scoping and landfall design.
• Pricing and risk allocation: Greater certainty on harmonisation of certification and carbon accounting to enable structured offtake with traceable green attributes, facilitating corporate decarbonisation claims and compliance with emerging disclosure regimes, also allowing for innovative products for data centres and other large loads.
• System flexibility: Reliable access to diverse renewable power sources via cross-border trade supports security, variability management and reserve sharing, reducing the need for standalone back‑up and lowering system costs over time.

In the wider ASEAN region:

• Regional interconnectors: The CBET Framework will serve as a model for broader cross-border electricity trade, supporting the ASEAN Power Grid agenda and providing a reference for harmonised permitting, standards and cable protection across transit states, which will be decisive in scaling cross-border trade and congestion management.
• Investment mobilisation: More clarity on governance and certification guardrails to improve bankability for multi‑jurisdictional interconnectors and renewable hubs, catalysing private capital and financing solutions.
• Standards convergence: Work on RECs interoperability and embedded emissions accounting should make cross‑border trade in green electrons and green products more efficient and less exposed to import/export controls, as well as supporting eligibility under sustainable finance frameworks.
• Capacity building: Commitments to knowledge‑sharing and partnerships with ASEAN institutions should accelerate regulatory readiness, technical standards development, and emergency response coordination for subsea infrastructure.

Irrespective of jurisdiction, the CBET Framework provides tools for investors to build in realistic timelines for multi-agency approvals and environmental assessments, allowing projects to structure implementation around route risk, repair access and cable protection obligations.

What comes next?

In the near term, project proponents should move quickly to align delivery programs with the CBET Framework’s processes and timelines, and to plan for offtake and financing packages that take into account harmonised certification and carbon accounting. Practically, this will mean locking in survey and seabed data windows, sequencing environmental and heritage approvals with offshore electricity infrastructure licensing in Australia, progressing conditional licensing steps in Singapore, and mapping dependencies across customs, vessel and security clearances in both jurisdictions.

Projects currently in planning are well‑placed to benefit, such as SunCable’s Australia-Asia PowerLink, which has already obtained key approvals in Australia and a Conditional Approval from the Energy Market Authority in Singapore.

Policy implementation will also matter.

In Australia, the progressive commencement of the Guarantee of Origin scheme, integration with National Greenhouse and Energy Reporting obligations where relevant, and alignment with critical infrastructure cyber obligations will be closely watched by developers and investors.

In Singapore, the EMA’s staged licensing program and the practical coordination among maritime, planning, utilities and telco authorities will define delivery speed for landing sites and inland routing.

Regionally, the ability to secure clearances and protection for transit through third‑country waters will influence schedule and procurement strategies - the CBET Framework anticipates joint engagement with transit states to facilitate permits and align protection protocols.

Momentum continues to build around ASEAN Power Grid projects and pathfinder interconnectors, which will be further encouraged by the CBET Framework which explicitly anticipates cooperation with ASEAN institutions and other international agencies. CSP 2.0 will catalyse further work programmes across the Transitioning to Net Zero pillar, particularly on standards and green trade, to reduce friction, attract private capital and translate policy alignment into megawatts delivered.

For sponsors, lenders and offtakers, the signal is clear: cross-border electrons are moving from aspiration to investable reality. The projects that get there first will be those that marry disciplined approvals strategies with robust stakeholder engagement, bankable offtake linked to credible green attributes, and designs that integrate protection, interoperability and resilience from day one.