South-east Asia has suffered close to $220bn in climate-related economic losses over the past 30 years, and observers expect the region to face major challenges in the coming decade due to human-induced climate change. In the face of such challenges, Singapore is actively helping to usher in a greener tomorrow.

In the 2023 Southeast Asia’s Green Economy Report jointly published by Bain & Company, Temasek, GenZero and Amazon Web Services, it was estimated that as of 2022 an additional $1.5tn in cumulative investments would be needed to meet the region’s 2030 carbon reduction targets.

By continually pushing at the frontiers of sustainability, Singapore has positioned itself as a regional hub committed to supporting the green transition across south-east Asia, most notably through the Singapore Green Plan 2030, which is a whole-of-nation programme designed to advance its sustainable-development agenda.

At the UN’s COP28 climate change summit that wrapped up in Dubai in December, many inroads into carbon credit trading, high-integrity carbon credits, green finance and decarbonisation were made in conjunction with Financing Asia’s Transition Partnership (Fast-P) – a blended finance initiative launched in collaboration with key public, private and philanthropic sector partners in Singapore to mobilise $5bn for green transition projects.

The Monetary Authority of Singapore (MAS) launched the Transition Credits Coalition (Traction) in the same week, with two pilot projects that will test the use of high-integrity transition credits for the early retirement of coal-fired power plants in Asia.

“We're not only aiming to be a pure green finance hub. Our vision is to be a leading sustainable finance hub for Asia — one that not only ensures green activities are financed, but one that can also catalyse and drive Asia's net-zero transition,” said Pamela Lee, MAS’s deputy chief sustainability officer.

In fact, Singapore’s strengths in the regulatory environment and its effective climate policy framework mean the island now accounts for more than half of the green, social and sustainability-linked bonds and loans in the Association of Southeast Asian Nations (Asean) region.

Singapore as a hub for green dialogue

As well as ensuring the availability of green finance, Singapore aims to move the environmental agenda forward by encouraging thought-leadership conversations at high-level events such as the Singapore Carbon Market & Investor Forum, Ecosperity Week and Asia Climate Summit.

When specialist event organiser Carbon Forward was looking to launch an Asian edition of its flagship gathering, it chose Singapore as host.

“Singapore was a natural choice as the host city for Carbon Forward Asia due to its status as a financial and carbon hub for the larger [Asia-Pacific] region, along with the strong support received from key government agencies and the presence of engaged industry sponsors,” said Stian Reklev, co-founder of Carbon Pulse, a provider of market intelligence on global climate policies.

Carbon Forward Asia will take place in Singapore on March 7-8 this year. Attendees can look forward to many opportunities to gain knowledge on policy developments and market opportunities.

Meanwhile, the meetings, incentives, conventions and exhibitions (Mice) industry is set to become greener as Singapore implements its Mice Sustainability Roadmap to elevate sustainability standards in the sector. The move follows the 2022 establishment of the Global Mice Sustainability Alliance, achieved through collaboration between the Singapore Tourism Board and key industry players.

Since then, a first-of-its-kind zero-waste booth — featuring upcycled materials and a reusable modular design — was introduced at Food & Hotel Asia’s Food & Beverage event in the city in 2023, and Singapore is set to host the Global Sustainable Tourism Council Certification global conference in November this year.

A green innovation hub

Technology is critical to combating climate change and building more resilient communities, so Singapore has also been driving green-tech innovation. Temasek’s annual Ecosperity Week, for instance, attracts global investors, business leaders and policymakers to Singapore and encourages the development of breakthrough technical solutions and collaborations. Its 2023 edition drew over 3,000 participants, including key speakers such as Indonesian President Joko Widodo.

Ecosperity Week also features events such as the Liveability Challenge, which explores innovative solutions to the challenges faced by cities located in the tropics. More than 600 solutions from 82 countries were submitted for the most recent edition of Ecosperity Week, all vying for S$2.5mn worth of grants and prizes.

Early-stage climate projects can also look forward to improved bankability of sustainable investments in the region thanks to a new green investments partnership between Allied Climate Partners, International Finance Corporation, the MAS and Temasek that was signed at COP28. The partnership will bridge gaps in the region's sustainable infrastructure financing needs through blended finance and crowding in both concessional capital from the philanthropic and public sectors and private capital.

With more than 80 per cent of south-east Asia still dependent on fossil fuels for power, an orderly and just energy transition will be needed to reach net zero.

Global energy leaders who convened at the 2023 Singapore International Energy Week (SIEW) addressed the importance of technological innovation, investments and infrastructure, as well as supply chain resilience, to meeting this goal. Organised by Singapore’s Energy Market Authority (EMA), the event aims to drive global dialogue and action in the energy transition.

Since SIEW’s first edition in 2008, it has brought together more than 200,000 energy players from over 130 countries, including prominent speakers such Dr Fatih Birol, executive director of the International Energy Agency (IEA).

“With the climate crisis being a serious challenge and decarbonisation increasingly urgent with each passing year, SIEW is a key global platform for energy players to discuss solutions to energy issues and the energy trilemma,” said Jonathan Goh, Director of the External Relations Department at EMA.

EMA hopes that SIEW will continue to provide a platform for industry-specific discussions alongside other events. The decision of the International Renewable Energy Agency (Irena) to hold three editions of its Singapore-IRENA High-Level Forum in the country cemented Singapore’s reputation as the ideal location for the meeting of high-level government representatives, financial institutions, development partners and industry leaders.

“IRENA hopes to see an even stronger emphasis on translating commitment into action [and] we expect SIEW 2024 to be a pivotal platform for forging impactful partnerships and accelerating the global transition to renewable energy,” said an IRENA spokesperson.

“The Singapore government has put climate change as an urgent national priority, implementing measures to increase the use of clean, sustainable energy. In so doing, Singapore has emerged as a hub for regional collaboration to intensify actions on the ground.”