SINGAPORE – To address economic and climate objectives at the same time, Singapore needs to adopt a three-prong approach that includes leveraging green finance to manage the risks of climate change and mobilise capital for green and low-carbon investments.
Speaking at the European Union (EU)-Singapore Dialogue on climate change on Thursday (Nov 5), Minister of State for Sustainability and the Environment Desmond Tan said that to succeed in its efforts, the country also needs to plan ahead for a smooth low-carbon transition and build resilience against environmental shocks.
“Covid-19 has accelerated pre-existing trends, including rising protectionism, rising inequalities and global warming.
“The onus is on us to continue to look beyond the immediate Covid-19 crisis and prepare for these long-term challenges, notably climate change.
“This has always been Singapore’s approach to development – to look and plan long term,” said Mr Tan.
He said the Government’s strategy sends a powerful signal for other stakeholders to act, especially the private sector and investors.
“If we all develop and implement long-term decarbonisation plans, it will facilitate the shifts needed for the transition to a more sustainable post-Covid future.
“Crucially, it will strengthen the momentum on global climate action by showing that we are all committed to achieving the goals of the Paris Agreement,” Mr Tan added.
He urged more companies to make the low-carbon, low-emissions transition, adding that firms can tap the Economic Development Board’s Resource Efficiency Grant for Energy and the National Environment Agency’s Energy Efficiency Fund.
“Companies should use this period of lowered activities to consider implementing energy-efficiency improvement projects so that they can be more cost-competitive and emerge stronger from this crisis,” said Mr Tan.
In her opening remarks, EU Ambassador to Singapore Barbara Plinkert reiterated that the EU and Singapore have continued to prioritise climate action, and have a mutual ambition to ensure green recovery.
During the dialogue, which heard inputs from Mrs Plinkert as well as Mr Mauro Petriccione, the European Commission’s Directorate-General for Climate Action, Mr Tan welcomed opportunities for South-east Asia and Singapore to collaborate with European companies in climate-related projects.
He said the region expects to see more sustainability-related growth opportunities in areas such as infrastructure, renewable energy, carbon services and financing.
In his speech, Mr Tan highlighted the importance of green finance, a “critical enabler of green growth”, which has the potential for companies to support sustainable initiatives while ensuring good returns.
“As a global-Asia node and a leading financial and business hub, Singapore can be the bridge to connect European companies to opportunities in the region,” he said.
Green finance refers to an area of banking and investment supporting projects that consider a range of environmental concerns.
In June this year, Singapore joined the EU-initiated International Platform on Sustainable Finance to contribute to efforts to scale up sustainable finance globally and promote the integration of markets for green finance products internationally.
Mr Tan also stressed that resilience in areas such as food security and the war against waste must be ingrained in the country’s DNA.
Singapore aims to send 30 per cent less waste to the Semakau Landfill by 2030 to extend the lifespan of the nation’s only landfill.
Also within the decade, the country aims to locally produce about one-third of its nutritional needs.
“In the coming years, we will masterplan our agriculture region and allocate more resources to grow our local food production capabilities in a sustainable manner,” said Mr Tan.
