11th Singapore Dialogue on Sustainable World Resources - Ms Grace Fu

Keynote Speech by Ms Grace Fu, Minister for Sustainability and the Environment, at the 11th Singapore Dialogue on Sustainable World Resources on 9 May 2024

Chairman of the SIIA Simon Tay,

Excellencies,

Distinguished Participants,

1 Good morning. I am pleased to join you once again for the Singapore Dialogue on Sustainable World Resources. I thank Simon and his team from SIIA for organising this event. This year’s edition coincides with some key developments.

2 First, the cost of renewable energy has fallen in recent years. Today, power from renewables has become comparable with those from fossil fuels. The International Renewable Energy Agency, IRENA, highlighted that the high fossil fuel prices will cement a structural shift in renewable energy being the cheapest source of power generation.

3 Second, many governments around the world are entering elections. There are concerns that the political commitment to tackle climate change might wane in some countries. However, changes in governments do not stop climate change. We must institutionalise climate action, so that they can be more resilient regardless of the political cycles.

4 Third, recent climatic events remind us that realities are changing. The region has experienced blistering heatwaves in recent months; Myanmar recording its highest ever April temperatures of 48.2°C; and the Philippines and Thailand seeing record temperatures with new highs and Thailand’s heat index listing above 52°C.

5 Elsewhere, we see rising incidence in flooding events in Pakistan and China. Last month, northern ASEAN was blanketed with thick haze, and the UAE experienced the heaviest rainfall in 75 years.

6 These have a direct impact on health, the economy, productivity, and food production.

COP28 Global Stocktake

7 The inaugural Global Stocktake at COP28 acknowledged that the world has made some progress on climate action since the Paris Agreement, but emphasised the need for more urgent and decisive climate actions within this critical decade to keep our 1.5°C goal within reach.

8 The Global Stocktake was an important milestone, as the international community collectively agreed to move from setting broad-based net zero targets to definitive steps towards the implementation of transition pathways and climate mitigation.

9 When the gavel fell at COP28, there was agreement by all Parties to transition away from fossil fuels in our energy systems, triple renewable energy capacity globally, and double energy efficiency improvements globally by 2030. Parties also agreed to accelerate zero and low-emission technologies, including nuclear, carbon capture, utilisation and storage and low-carbon hydrogen. This may not seem very earth-breaking shattering to industry outsiders, but within the climate circuit, technologies such as nuclear and carbon capture have not always been universally accepted. The fact that they were all mentioned as an acceptable pathway at COP28, to Singapore, a country that requires these technologies, was a significant step. It has a knock-on effect on the industry. It sends a signal to the industry and investors that these are acceptable technologies that will have its place in climate action.

10 It was also significant that Parties further agreed to strengthen their adaptation actions and to implement National Adaptation Plans by 2030. Our planetary ecosystems are intertwined. We have emphasised heavily on mitigation, but the world needs to focus on adaptation as well.

11 There will be resources needed for adaptation plans. We have seen in the Singapore Green Plan that adaptation measures impact our carbon footprint. Adaptation plans such as desalination is energy intensive, and it eats into our carbon footprint and budget. Singapore has included adaptation when we talk about our net zero goals. This means having to also offset carbon emissions incurred by adaptation measures. When countries discuss about their net zero goals, they must also include national adaptation into their climate action plans. It makes mitigation plans more complete and includes in this a significant element that has been missing from some countries’ net zero chart. This approach ensures that no sectors or gases, including agriculture and methane emissions, are left out. That is an important move on UNFCCC’s part to have our net zero target comprehensive, all-encompassing, and detailed.

12 Singapore is committed to following up on the UAE Consensus adopted at COP28. We have been advancing our transition efforts through the Singapore Green Plan, which includes pursuing efforts in greening the environment, promoting green transportation, pursuing zero waste, and increasing proportion of renewable energy in our energy mix, and adapting to sea level rise.

13 Today, I would like to focus on the opportunities in regional cooperation for green growth.

Green Growth Cooperation in ASEAN

14 A report by the Asian Development Bank (ADB) stated that 5 out of the 20 countries most impacted by climate change will be in Southeast Asia. It is therefore imperative for the region to accelerate climate action to safeguard lives and protect the economy. ASEAN countries need to ride on the momentum of the Global Stocktake and push ahead with their green ambitions.

15 It is reassuring that there is political consensus for climate action. All ASEAN nations have submitted their Nationally Determined Contributions (NDCs) and most have set net-zero targets.

16 However, a green, sustainable future cannot be achieved by any one country in isolation. Our collective efforts are more effective when we work together. We need effective partnerships and international cooperation to fast-track our region’s energy transition. I would like to highlight some possible areas.

17 First, ASEAN can enhance trade of renewable energy. The Power Integration Project with Laos, Thailand, Malaysia, and Singapore has been a pathfinder for a wider regional grid. By promoting renewable energy trade, ASEAN not only benefits by decarbonising the power sector, but also strengthens our joint grid resilience. This is well illustrated with the Ukraine-Russian War. Europeans, who relied on the grid that has been working well for the longest time, became more resilient when there was a disruption in the energy supply. We should take lessons from that and work on a resilient regional grid to help ASEAN weather any disruption in the future. The next step is to expand regional energy trading and aim for an ASEAN-wide power grid. The uneven distribution of renewable energy resources and the need to address the associated intermittencies of renewable energy compel us to move in this direction.

18 Second, ASEAN can collaborate to harmonise standards of monitoring, reporting and verification. This will not only enhance the accountability of our climate actions but also support the development of interoperable carbon markets. Since 2019, ASEAN and Japan have worked together through the Partnership to Strengthen Transparency for Co-Innovation (PaSTI), to build capabilities for MRV. The next step is a pilot implementation of greenhouse gas emission monitoring and reporting guidelines across ASEAN Member States.

19 Third, ASEAN can accelerate green value chain integration by leveraging trade complementarities. For example, an integrated feedstock pathway for biofuels in ASEAN can bring about win-win opportunities.

20 Fourth, ASEAN can attract and deploy green capital. As a financial hub, Singapore is supporting the development of transition financing. At COP28, we launched the Financing Asia’s Transition Partnerships (FAST-P) blended finance initiative to mobilise up to US$5 billion from public and private sector to derisk transition projects. We also launched the Transition Credits Coalition (TRACTION) with like-minded partners (such as DBS, OCBC, Standard Chartered, HSBC, Mitsubishi UFJ Financial Group (MUFG), Mizuho Financial Group, and Sumitomo Mitsui Banking Corporation) at COP28 to create solutions for transition credits.

21 Fifth, ASEAN can pool the experience of all Member States and facilitate sharing of best practices to advance climate action. Singapore offers the Sustainability Action Package of capacity-building programmes, which covers climate change adaptation, mitigation, and green finance. We will also be sharing data from the Third National Climate Change Study with ASEAN Specialised Meteorological Centre, so that the data can be used by ASEAN Member States to make better-informed decisions, particularly in our adaptation plans and strategies.

22 Finally, ASEAN can promote and share solutions for sustainable agroforestry. Properly managed agroforestry systems act as carbon sinks and enhances agricultural production. It helps to lower the risks of forest fires, which in turn will protect the lives and livelihoods of the farmers and local communities.

Conclusion

23 It is imperative that ASEAN work together to accelerate its green transition. ASEAN can leverage the benefits of regional complementarity, create economies of scale, and drive opportunities for green growth.

24 In so doing, it not only helps ASEAN countries to meet their respective net-zero and sustainable development goals, it also brings prosperity to the 670 million population in the region through green investment and job creation.

25 I hope the 11th Singapore Dialogue for Sustainable World Resources will inspire stakeholders to push for greater regional collaboration, and I would like to thank SIIA once again for their efforts today.

26 I wish you fruitful discussions ahead. Thank you.