BAKU

In a bold move to tackle climate change, Singapore has announced a groundbreaking pledge to match contributions up to US$500 million (approximately S$670 million) for green and transitional projects across Asia. This commitment was unveiled by Singapore’s Sustainability and Environment Minister, Grace Fu, during her address at the UN Conference of the Parties (COP29) held in Baku, Azerbaijan, on November 12th.

"We, as a financial hub, are intensifying our efforts to mobilize the necessary financing for global climate action," Minister Fu stated in a pre-recorded message, coinciding with the inauguration of the Singapore Pavilion at the esteemed climate summit.

This dollar-for-dollar matching pledge aims to bolster the Financing Asia’s Transition Partnership (FAST-P), which the Monetary Authority of Singapore initiated last year. Our efforts are positioned to enhance the climate resilience of Asia by creating a robust pool of concessional capital designed to attract commercial investment and diverse funding sources to support the continent's green transition.

The FAST-P initiative strives to accumulate an impressive US$5 billion in collaboration with international partners, thus making climate action financially viable and less risky for all stakeholders involved. The projected funding will arise from a broad array of sources, including foreign governments, philanthropists, and development banks.

Singapore's Role in Global Climate Discussions

As world leaders converge at COP29 to discuss strategies for mitigating global warming and transitioning from fossil fuels, the spotlight remains on acquiring increased financial resources to support developing nations in coping with climate adversities. Minister Fu expressed concern that, although progress has been made since the Paris Agreement, it remains inadequate to limit global temperatures to a rise of 1.5 degrees Celsius.

“Despite our status as an energy-disadvantaged city-state, Singapore is dedicated to contributing actively in this global endeavor,” Fu emphasized, reinforcing Singapore's role as a vital player capable of offering innovative financing solutions for green projects in the region.

The theme at the Singapore Pavilion, "Realising Our Shared Climate Vision Together," highlights a commitment to forging partnerships and discussions on various climate issues, including carbon markets, energy transitions, and sustainable water management.

Significant Milestones in Singapore's Climate Journey

Minister Fu highlighted Singapore’s commendable achievements towards its environmental goals. With a comprehensive Singapore Green Plan guiding the nation's climate ambitions, key targets are in place such as achieving an increase in solar energy capacity to 2 gigawatt-peak by 2030—enough to power approximately 350,000 households annually.

Moreover, the Singapore government is targeting to green 80% of buildings by 2030 and aims to increase imports of clean electricity to around 6 gigawatts by 2035, comprising roughly one-third of the nation's energy supply. In line with revised nationally determined contributions (NDCs), Singapore is pushing for net-zero emissions by 2050, while working to reduce emissions to about 60 million tonnes by 2030, with projected peaks between 2025 and 2028.

Additionally, Singapore proudly submitted its first Biennial Transparency Report (BTR) and National Inventory Report to the United Nations, showcasing its actions and commitments to combat climate change.

Introducing EDB's New Carbon Grant Initiative

On a parallel path of progress, the Economic Development Board (EDB) announced the launch of a new grant aimed at providing Singapore-based carbon project developers with enhanced funding and support. This initiative is crucial for stimulating investments in carbon projects—from forest conservation to underwater carbon removal strategies—potentially transforming Singapore into a leading carbon trading center.

Curating an environment conducive for over 120 existing carbon service companies in Singapore, the EDB anticipates this grant will diversify project development opportunities, ultimately leading to more high-quality carbon credits that are essential for achieving the nation's climate goals.

As the world watches, Singapore is stepping up its commitment and leadership in the race against climate change, demonstrating that even smaller nations can have a significant impact on global efforts to create a more sustainable future. Will Singapore's bold move inspire other nations to follow suit? Stay tuned for updates on this transformative journey!