The transition to net zero will require us to transform how we live and work. As a densely populated metropolis in the tropics, Singapore is a living lab to develop testbeds and commercialise green solutions for urban living, says Ravi Menon, managing director of the Monetary Authority of Singapore (MAS).
Citing McKinsey, Menon says achieving net zero in Asia by 2050 will require about US$3.1 trillion ($4.36 trillion) in capital every year. “As a leading global financial centre in Asia, Singapore can play a key role in mobilising this capital.”
In his keynote speech at the launch of the inaugural Singapore Pavilion at the 2022 United Nations Climate Change Conference 27th Conference of the Parties (COP27), Menon highlighted blended finance.
“Many sustainability projects in emerging markets pose risks that are just not commensurate with their expected returns. We need catalytic capital to improve project bankability… We also need to recycle capital by taking loans off bank balance sheets and restructuring them in a form that institutional investors can participate in.”
Menon also underscored the importance of credible disclosure and transition plans. “We must give investors confidence to invest in the transition, especially given concerns around greenwashing. Corporates and financial institutions must therefore develop and disclose credible transition plans that are in line with science based sectoral pathways.”
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Themed around “Building a Future of Green Possibilities”, the Singapore Pavilion at COP27 will showcase the Singapore Green Plan 2030, innovative climate solutions and international collaborations that help the region adopt sustainable solutions.
Held in Sharm el-Sheikh, Egypt, COP27 started on Nov 6 and will run till Nov 18. The Singapore Pavilion is a partnership with over 100 partners from corporates, media, academia, international organisations and non-governmental organisations (NGOs).
In the coming days, the Singapore Pavilion will host talks and panels featuring representatives from Singapore-listed companies DBS Group Holdings, United Overseas Bank U11 (UOB), Oversea-Chinese Banking Corporation (OCBC Bank), Singapore Exchange S68 (SGX), CapitaLand Investment, City Developments Limited C09 , ComfortDelGro C52 , SingPost, Sembcorp Industries U96 and Olam Group VC2 .
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Other speakers include leaders and executives from the Prime Minister’s Office, Temasek, the Maritime and Port Authority of Singapore, Surbana Jurong, Goldman Sachs, Standard Chartered, Hashstacs (STACS), GenZero, the Glasgow Financial Alliance for Net Zero (GFANZ) and the World Wide Fund For Nature.
The programmes will be livestreamed on the Singapore Pavilion website.
Singapore has raised its climate ambition to achieve net zero by 2050, as announced by Deputy Prime Minister Lawrence Wong last month. Singapore has also enhanced its 2030 Nationally Determined Contribution (NDC) to peak emissions earlier, from 65 million tonnes to 60 million tonnes.
These are ambitious goals for a small island city-state with limited options to deploy renewable energy at scale, says Grace Fu, Minister for Sustainability and the Environment. “But we are committed to doing our part in the global effort against the climate crisis, and have backed our ambitious goals with concrete policies and actions.”
The pavilion brings together key players in Singapore’s ecosystem, who are developing and incubating innovative solutions that drive climate action, adds Fu in a recorded opening address. “I hope that these presentations can spark ideas and robust conversations, and help push the frontier of solutions on mitigation and adaptation globally.”
Fu will join the COP27 programmes later this week.
Photos: Singapore Pavilion COP27
