Singapore — May 9, 2024 —
In a pivotal address, Singapore underscored its unwavering commitment to its climate strategy, stressing the urgent need for international collaboration amidst global uncertainties. Senior Minister Teo Chee Hean highlighted the increasing effects of climate change and the necessity of immediate action, notably in the face of geopolitical challenges. This commitment, announced at Ecosperity Week, should shape policy for years to come.
Singapore’s Climate Strategy: A Call for Global Collaboration and Regional Integration
The Imperative of Climate action
Singapore is doubling down on its commitment to global climate action, recognizing the urgent need for international cooperation despite geopolitical shifts. Senior Minister Teo Chee Hean emphasized the growing impacts of climate change and the necessity for immediate action during his keynote address at Ecosperity Week, a sustainability conference convened by Temasek.
Climate change will not wait for us to be ready. The longer we delay, the more abrupt and harder our transition will be.
Mr.Teo, who chairs the Inter-Ministerial Committee on Climate Change, stressed that Singapore will proactively pursue partnerships to reduce emissions and prepare for a warmer world.This commitment comes amid concerns that sustainability efforts are taking a backseat due to global uncertainties.
Navigating Geopolitical Challenges
Recent geopolitical developments, such as the U.S. announcement to withdraw from the Paris Agreement and Indonesia’s reconsideration of the pact’s relevance, pose notable challenges to global climate efforts. The Paris Agreement, signed by nearly 200 countries in 2015, aims to limit global warming to 1.5 degrees Celsius above pre-industrial levels.
Despite these challenges, Mr. teo remains steadfast in Singapore’s commitment.
Under these circumstances, it is not surprising to hear calls for climate ambition to be rolled back or at least deferred.
Senior Minister Teo Chee Hean
He acknowledged the pressures on governments and businesses to prioritize immediate concerns like job preservation and financial reserves, but cautioned against neglecting long-term sustainability goals.
Southeast Asia’s Potential: The ASEAN Power grid
Mr. Teo highlighted the potential of Southeast asia to transition to a low-carbon future through enhanced collaboration among governments, businesses, and investors. A key initiative is the integrated ASEAN power grid, which aims to facilitate the regional energy transition.
- The ASEAN power grid enables countries to trade electricity generated from renewable sources.
- This reduces reliance on fossil fuels and strengthens regional energy resilience.
- Singapore is increasing its electricity import capacity from 100MW to 200MW via the Laos-Thailand-Malaysia-Singapore power integration project.
According to Mr. Teo, the ASEAN grid could boost gross domestic product by up to 4.6% and create thousands of green jobs with continued investment and cross-border cooperation.
south-east Asia has immense renewable potential – solar, wind, hydro and geothermal, these are abundant. yet the uptake remains limited, because poor grid connectivity prevents clean energy from reaching where it is needed most.
Senior Minister Teo Chee Hean
addressing the Funding Gap
A significant challenge in achieving a green future is the ample financing gap for green investments in Southeast Asia, estimated at over $210 billion annually until 2030. Mr. Teo emphasized the need for innovative financial solutions,such as blended finance,to encourage public-private partnerships.
Singapore is actively facilitating collaborations through initiatives like the Financing Asia’s Transition Partnership, launched in 2023, which aims to raise up to $5 billion for green projects in Asia.
We hope this spurs businesses, investors and governments to go further to crowd in capital from within the region, and direct it towards credible green projects.
senior Minister Teo Chee Hean
The Role of Carbon Markets
Mr. Teo also highlighted the importance of developing carbon markets to unlock the region’s potential. Carbon markets enable countries to buy carbon credits generated elsewhere to meet their climate targets, promoting international climate cooperation.
- Carbon credits can come from technological solutions like carbon capture or nature-based projects.
- Nature-based credits can incentivize forest restoration, conservation, and lasting agriculture.
During a dialog with Temasek chief executive Dilhan Pillay, the importance of integrity and credibility of carbon credits was stressed, as well as the need for firms to expand beyond Asia.
We should make sure that the best we have to offer in Asia can find their way even beyond the shores of Asia, wherever you can get the best value possible.
Dilhan Pillay, Temasek CEO
Mr. Pillay added that southeast Asia has significant promise and that regional prosperity will attract more trade and investment.
South-east Asia has a lot of promise… If we prosper as a region, more and more people will want to come and trade with us and invest in us. It’s for us to take ownership of this chance to take it forward.
Dilhan Pillay,Temasek CEO
