Singapore's climate strategy stands firm amid global setbacks on emissions

Business Times

04-06-2025

[SINGAPORE] As major economies scale back climate commitments and global momentum stalls, Singapore stands out for its steadfast approach to climate action.
Recent policy reversals in countries like the United States – where significant climate safeguards for air, water, wildlife, and toxic chemicals have been dismantled – have cast doubt on the world's collective resolve.
Several major signatories to the Paris Climate Agreement also missed the Feb 10, 2025, deadline to submit updated carbon emission targets to the United Nations (UN), signalling a worrying slowdown in global efforts to cut emissions.
In contrast, Singapore remains resolute in pursuing its climate ambitions. For one thing, it was among the few nations to meet the UN deadline for new climate targets.
Prime Minister Lawrence Wong also reaffirmed Singapore's commitment in the latest Budget statement, reiterating that the government 'remains resolute' in its decarbonisation efforts, despite slowing momentum on the issue globally.
During Budget 2025, he also introduced a S$5 billion injection into the Future Energy Fund to secure clean power, alongside incentives to accelerate the adoption of zero-emissions heavy vehicles like electric goods vehicles and buses.
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Mitigating risks
Singapore's commitment to decarbonisation is not only a far-sighted course of action, but also an act of great wisdom.
As climate change accelerates and extreme weather events become more common, governments that delay taking action now will face a far more challenging transition down the line.
When disasters like wildfires, floods, and heatwaves grow too frequent and severe to overlook, governments will be compelled to take drastic actions – but at that point, it may already be too late to prevent the catastrophic consequences.
By addressing climate risks today, Singapore is not only preparing to handle future challenges proactively, but also positioning itself to capitalise on new opportunities in the burgeoning global awareness and seismic shift towards a low-carbon economy.
The city-state aims to cut emissions to between 45 million and 50 million tonnes of carbon dioxide equivalent by 2035. This is on top of an ambitious plan to achieve net-zero emissions by 2050, through the Singapore Green Plan 2030.
This national strategy is anchored by five key pillars: city in nature; energy reset; sustainable living; green economy; and resilient future.
One focus of the Singapore Green Plan is about enhancing the city-state's liveability.
The government is expanding the rail and cycling networks, retrofitting buildings to be greener, and creating more parks and green spaces. Clear targets have also been set to cut landfill waste and reduce water usage.
These efforts not only advance the goal of creating sustainable, eco-friendly homes, but also fulfil residents' desires for a cleaner, healthier living environment.
Another key priority is transitioning to sustainable energy sources. Singapore aims to raise its solar energy deployment to 2 gigawatt-peak by 2030, which would meet 3 per cent of the city-state's projected energy needs.
It also aims to slash emissions in the transport sector, by spurring the transition towards electric or low-emission vehicles across air, land, and sea.
Achieving these goals requires the right skilled talent to drive scientific innovation and bring new inventions to market.
Hence, the energy transition will create new job opportunities across various sectors including research, analytics, and finance.
Globally, the International Energy Agency projects the creation of 10.3 million new jobs by 2030 as the world shifts to cleaner energy.
In Singapore, the green economy is a key growth sector, with the national skills agency SkillsFuture identifying strong demand for highly adaptable and in-demand skills.
Aside from talent, transitioning to a low-carbon economy will also demand substantial investments.
This has led to the growth of sustainable finance, which is channelling significant new capital into the economy by supporting investments in infrastructure, expanding the green bond market, and fostering the development of carbon trading hubs.
A passing fad?
Some have questioned whether shifts in global climate policy and ongoing trade uncertainties might mean that sustainable finance is losing its relevance. However, this is far from the case.
While recent changes in trade policies may complicate supply chains for technologies like electric vehicles and solar panels, these challenges are also prompting governments to strengthen domestic capabilities and encouraging companies to localise their supply chains.
Singapore is not the only country advancing these efforts through a national climate policy platform. The European Union, for instance, aims to be carbon-neutral by 2050 through a set of policy initiatives put forth under the European Green Deal.
Further, even if the tempo of climate policy action may appear to be abating, some structural trends are here to stay.
Rapid urbanisation and population growth are set to double electricity demand globally over the next two decades.
Meeting this demand will require increased energy supplies, particularly from renewables. With solar and wind now the most cost-effective sources, global investments in renewables is expected to surge, making them the preferred options for new energy supplies.
At the same time, advancements in artificial intelligence will drive demand for energy-efficient data centres to support these energy-intensive technologies.
Separately, the slowdown in global mitigation efforts has heightened the risk of climate-related damage and loss. In response, investors are seeing growing opportunities in climate adaptation measures.
According to a report by Singapore's sovereign wealth fund GIC, global annual revenues from various adaptation solution sectors could rise from US$1 trillion today to US$4 trillion by 2050.
The associated investment opportunities are projected to expand from US$2 trillion now to US$9 trillion by 2050, with US$3 trillion of this growth directly linked to global warming.
These projections are based on the assumption that global temperatures will increase by 2.7 degrees Celsius by the end of the century.
A separate report by Temasek, which focuses on private equity opportunities, estimates that global annual demand for adaptation financing could reach between US$500 billion and US$1.3 trillion from 2025 to 2030.
This is significantly higher than current adaptation financing levels, which average about US$76 billion per year and are primarily sourced from public funds.
Notwithstanding the observation that some governments are slowing down their efforts to promote climate protection, there remains a growing pivotal emphasis on environmental protection and sustainability. The shift toward a sustainable future remains inevitable.
In time, Singapore's current investments in a greener future will yield qualitative dividends for its people, to be able to reside in a salubrious climate.