Speech by SMS Low Yen Ling at Asia New Vision Forum (ANVF) 2024

Ms Hu Shuli (胡舒立), Publisher, Caixin Media and Chairwoman, Caixin Global

Mr John Thornton, Executive Chairman, Barrick Gold, Co-chair of the Board of Trustees of the Asia Society

Distinguished guests,

Ladies and Gentlemen,

Introduction

1. Good morning. Thank you for inviting me to this event.

2. I am pleased to join you at the Asia New Vision Forum (ANVF) today. This year’s theme, “Global Challenges, Asian Solutions” is particularly timely. I will speak on sustainability and energy transition – an issue that affects the global community and holds great significance for us in Asia. I will share Singapore’s approach to sustainability and energy transition and how Singapore can collaborate with other Asian countries to co-create solutions for a more sustainable future.

Singapore’s approach to sustainability and energy transition

3. Sustainability has long been embedded in Singapore’s identity. Since independence, we have pursued a path of sustainable development, carefully balancing economic growth with environmental protection.

4. Today, Singapore stands as one of the greenest cities in the world.

5. Some of you may have noticed the trees lining the roads from Changi Airport or the lush greenery welcoming you as you arrived in Sentosa this morning.

6. These sights are a testament to the dedication of generations of Singaporean leaders and citizens who have worked tirelessly to build the garden city we live in today.

7. And we are determined to build on their legacy and foundation. The Singapore Green Plan 2030, unveiled in 2021, seeks to attain our sustainable development goals. This comprehensive plan outlines Singapore’s ambitions and targets for the next decade, including our transformation into a "City in Nature" and achieving our long-term aim of net zero emissions by 2050.

Singapore Green Plan: Sustainable Living

8. To reach our sustainable development aims, we need everyone to make sustainability a part of their daily lives.

9. Singaporeans are familiar with the importance of conserving resources and recycling waste. We will build on this foundation by further reducing household water consumption and waste generation.

10. Having no natural resources, Singapore is constantly challenged to minimise wastage and continuously find ways to optimise our resources. For instance, we have endeavoured to close the water loop and maximise our water use. Singapore is one of the few countries that recycle and reuse every drop of water through a water recycling process that transforms used water into ultra-clean, high-grade reclaimed water known as NEWater.

11. Another way we foster sustainable living is by encouraging greater use of public transport. Besides discouraging car use, we expanded our rail, bus and cycling path networks to create a more efficient public transport system. By 2030, we aim to have 75% of peak-period journeys to be made using mass public transport.

12. In addition, we are taking steps to ensure that our public transport system and vehicle population are as environmentally friendly as possible. By 2030, half of our public bus fleet will run on electricity. At the same time, we are actively ramping up the necessary electric vehicle (EV) charging infrastructure to encourage greater adoption of EVs.

Singapore Green Plan: Green Economy

13. Sustainability, of course, comes with a price tag. However, if managed well, the green economy can become a powerful engine for growth.

14. To achieve this, we must continue to attract new investments that are among the best in class in carbon or energy efficiency. At the same time, we support companies' green transition and sustainability efforts.

a. Singapore introduced a broad-based carbon tax to signal its commitment to sustainability and encourage companies to reduce their carbon emissions.

b. We are also exploring low-carbon pathways, such as carbon capture and storage (or CCS), to decarbonise hard-to-abate sectors.

c. The government has launched initiatives such as the Resource Efficiency Grant for Energy Scheme and the Energy Efficiency Grant, which aim to help companies reduce emissions and adopt more energy-efficient technologies.

15. As we transform our industries, we must also be ready to capture emerging opportunities in the green economy.

a. Today, Singapore is one of the world’s leading hubs in the energy and chemicals sector. In tandem with the global shift toward a low-carbon transition, we launched the “Sustainable Jurong Island” plan to transform Jurong Island into a Sustainable Energy and Chemicals Park. In addition to operating sustainably, the Park will also produce and export green products such as sustainable aviation fuel and biobased speciality chemicals.

16. The growing momentum for climate action among regional corporates has opened up new economic opportunities. We are building a robust ecosystem to position Singapore as a springboard for businesses in renewable energy services, carbon services and trading.

a. Singapore is home to about 120 world-leading low-carbon advisers, carbon project developers and traders.

b. Most recently, the Singapore Economic Development Board (or EDB) and IETA (formerly the International Emissions Trading Association) launched the Singapore Carbon Market Alliance (SCMA), which is dedicated to helping companies access high-quality Article 6 carbon credits.

  c. We are committed to strengthening Singapore's position as a carbon services and trading hub in Asia and contributing to global climate action.

Singapore Green Plan: Energy Reset

17. I spoke earlier about electrifying our public transport and vehicle population and increasing the adoption of more energy-efficient systems in our industries.

18. Electricity supply presents a significant challenge for a country like Singapore, which lacks natural resources and faces constraints in alternative energy options.

19. Nonetheless, we have sought to ensure a steady supply of electricity and an increase in its supply from clean and low-carbon sources.

  a. With the power sector accounting for around 40% of Singapore’s primary greenhouse gas emissions, transitioning our energy supply is critical to our decarbonisation and sustainability efforts.

20. Let me share how we are navigating this energy transition.

21. Singapore has adopted a strategy of “four switches” to reduce emissions in the power sector – natural gas, solar, regional power grids, and low-carbon alternatives.

First switch: Natural gas

22. The first switch is natural gas. Since the early 2000s, natural gas has been our primary energy source as it is the cleanest fossil fuel. Today, nearly 95% of Singapore’s electricity is generated from natural gas. It will likely remain a key source as we progressively switch to other energy alternatives. To meet growing energy needs and enhance energy security, we will build a Second Liquefied Natural Gas Terminal by the end of this decade.

23. It is critical that our natural gas power plants are best-in-class and future-ready. Therefore, we require all new and upgraded Combined Cycle Gas Turbines (CCGTs) to be 30% hydrogen-compatible by volume, with the capacity to be retrofitted for 100% hydrogen-ready in the future.

Second switch: Solar

24. The second switch is solar, Singapore's most viable source of domestic renewable energy. Although Singapore is already one of the most solar-dense cities in the world, we are still constantly exploring ways to expand our solar capacity. Our land scarcity has driven us to pursue innovative solar deployments, such as installing solar panels on water bodies. The Tengeh floating solar farm operated by Sembcorp is Southeast Asia’s largest floating solar farm today.

Third switch: Electricity imports

25. Our natural constraints have challenged us to think outside the box, leading to our third switch – electricity imports.

  a. An inter-connected regional power grid presents a mutually beneficial solution for regional decarbonisation.

  b. Singapore has made steady progress in our plans to import low-carbon electricity from the region to meet our growing energy needs.

  c. Earlier this month, we raised our ambition to import 6 GW by 2035, up from the initial target of 4 GW set in 2021. We have also awarded Conditional Approvals to nine projects to import low-carbon electricity from Cambodia, Indonesia, and Vietnam, with five Indonesia-based projects advancing to Conditional Licences.

  d. We will continue to engage with companies that present credible and commercially viable proposals to support Singapore’s 2050 net-zero ambitions.

Fourth switch: Low-carbon alternatives

26. Finally, for the 4^th switch, we will continue to explore low-carbon alternatives.

  a. One notable example is hydrogen, which has gained significant attention recently for its clean potential. Hydrogen allows for more sustainable power generation since it does not emit carbon dioxide when combusted. We launched our National Hydrogen Strategy in October 2022 with five key thrusts to progressively build our capabilities for large-scale hydrogen handling.

  b. Another option we are studying is nuclear energy. Singapore continues to engage with other countries to broaden our understanding of advanced nuclear energy technologies so that we can make informed assessments about their suitability within Singapore’s unique context.

27. As Singapore actively explores various pathways to decarbonise our power grid, we are simultaneously balancing the energy trilemma – maintaining cost competitiveness, ensuring energy security, and advancing our decarbonisation efforts.

  a. This challenge is not unique to Singapore; many countries face similar issues.

  b. We must work together as countries committed to sustainability and decarbonisation to overcome it.

  c. We can start by cooperating at a regional level within Asia and gradually expand our solutions to the rest of the world.

Working together as one Asia

28. That brings me to the last segment of my speech – working together as one Asia.

29. Today, Asia is a significant contributor to global carbon emissions. At the same time, it is one of the fastest-growing economic regions in the world. We, therefore, have a very important role to play in managing both the carbon and economic transitions.

30. Let me share two ways we can collaborate more effectively to accelerate our sustainability and energy transition efforts across the region.

Knowledge exchange

31. First, we can enhance our efforts through knowledge exchange and sharing best practices to accelerate developments in sustainability.

  a. Many Asian countries today are already leading the way in sustainability efforts.

  b. For instance, China is today a leader in renewable energy, with its renewable electricity capacity expected to further multiply. India also ranks among the top producers of renewable energy. Southeast Asian nations like Malaysia, Vietnam and the Philippines have announced ambitious plans to step up renewable energy deployment.

  c. Furthermore, China is the world’s largest EV producer and a strong player in the EV market. Other Asian countries, such as Korea, are also exploring ways to drive EV adoption.

32. Countries should come together to share their experiences and strategies, leveraging expertise to formulate effective policies. We are already fostering such exchanges on a national level. Furthermore, platforms such as ANVF will bring together Asian leaders from across the region and lay a solid foundation for knowledge exchange.

Financing

33. Next, we must focus on financing. Cleantech projects typically require substantial upfront capital investments and carry high risks. Hence, Asian economies can work together to establish transition and green financing mechanisms that improve the bankability of cleantech projects.

  a. For instance, in Singapore, the Monetary Authority of Singapore (or MAS) launched Financing Asia’s Transition Partnerships (FAST-P), a blended finance initiative aimed at mobilising up to US$5 billion from both public and private sector partners to de-risk and finance marginally bankable green and transition projects in Asia.

34. Establishing transition and green financing mechanisms is essential to unlocking the capital for large-scale cleantech infrastructure projects.

  a. We look forward to more dialogues and exchanges and to working closely with other Asian corporations and companies in this area.

Conclusion

35. In conclusion, addressing global challenges requires cooperation among nations. Asia is particularly vulnerable to the impact of climate change, including extreme weather events and rising sea levels. However, the region is well-positioned to lead in sustainability and energy transition and develop innovative solutions.

  a. We have abundant renewable energy resources to harness and are already at the forefront of many cleantech innovations today.

36. By joining forces, we can pool resources and amplify our influence on international policies and agreements.

37. Together, Asia can and will play a pivotal role in the global transition to sustainability and energy resilience. Thank you.