Singapore Green Plan 2030
On 10 February 2021 the Singapore government unveiled the Singapore Green Plan 2030, a nationwide movement to advance Singapore’s national agenda on sustainable development. The Green Plan is to be spearheaded by five ministries – the Ministries of Education, National Development, Sustainability and the Environment, Trade and Industry, and Transport – and features five key pillars as follows:
- City in Nature: to create a green, liveable and sustainable home for Singaporeans.
- Sustainable Living: to make reducing carbon emissions, keeping the environment clean and saving resources and energy a way of life in Singapore.
- Energy Reset: to use cleaner energy and increase energy efficiency to lower Singapore’s carbon footprint.
- Green Economy: to seek green growth opportunities to create new jobs, transform Singapore’s industries and harness sustainability as a competitive advantage.
- Resilient Future: to build up Singapore’s climate resilience and enhance its food security.
In order to help achieve the five key pillars, the government will be introducing an array of new initiatives and targets. Of note are:
- Green finance: For Singapore to be a leading centre for green finance in Asia and globally.
- Sustainability: The introduction of a new Enterprise Sustainability Programme to help Singaporean companies develop capabilities in sustainability.
- Solar: A commitment to increase the deployment of solar power generating assets in Singapore to at least 2GWp.
- Electric vehicles: Supporting the growth of EVs by doubling the number of EV charging points in Singapore from 28,000 to 60,000
- Innovation: The promotion of homegrown innovation under the Research and Innovation & Enterprise Plan 2025 (RIE2025), and attracting companies to anchor their R&D activities in Singapore to develop new sustainability solutions.
What do these targets and initiatives mean for market participants in the sustainable development sector?
Green Finance Action Plan
Recognising that the financial sector has a key role in addressing the impact of environmental risk and mobilising capital for the green economy, in November 2019 the Monetary Authority of Singapore set up a US$2 billion Green Investment Programme to place funds with asset managers committed to growing green capabilities in Singapore. By building up the financial sector’s resilience to environmental risks, developing green financial solutions, building knowledge and capabilities, and leveraging innovation and technology, the Green Plan seeks to establish Singapore as a leading centre for green finance in Asia and globally.
Among the targets of the Green Plan are the creation of new and diverse job opportunities in sectors such as green finance, sustainability consultancy, verification, credits trading and risk management. These targets build on the strategic location of Singapore – with Asia being a key supplier of carbon credits – and the fact that many energy traders are based in Singapore, to establish Singapore as a leading carbon trading and services hub. The Economic Development Board and Enterprise Singapore have also engaged companies active in the carbon space to establish a presence here. Services provided by these companies include low carbon project development; consulting and verification services for clean development mechanisms; carbon footprinting; project financing; and legal services.
Sustainable energy
The stated aim to increase solar deployment to five times the current installed capacity by 2030, as well as the doubling of the number of EV charging points over the same period, presents significant opportunities for industry players. While consumer behaviour appears to lag behind investment trends in Asia (and correspondingly Singapore), government-led efforts to bolster Singapore’s energy infrastructure for green energy will raise awareness and potentially reduce the costs of choosing green energy.
Solar
With respect to solar we would expect to see more opportunities in the commercial and industrial segment with roof top solar an obvious area for growth and also the increased deployment of floating solar located in Singapore’s territorial waters.
Electric vehicles
For EVs we would anticipate opportunities in both Singapore based R&D projects and the further roll-out of EVs of all types across the island state. Whilst buses are an obvious target market, there are multiple other vehicle types in the commercial space that can be moved over to EV.
Sustainability R&D
Singapore’s RIE2025 is backed by a total budget of S$25 billion and is organised along four domains, namely:
- Manufacturing, Trade and Connectivity
- Human Health and Potential
- Urban Solutions and Sustainability
- Smart Nation and Digital Economy
In conjunction with the Green Plan, the RIE2025 seeks to entice industry players to establish their R&D activities in Singapore to develop new sustainability solutions in areas such as carbon capture, utilisation and storage; low-carbon hydrogen; energy efficient materials; and solutions for the circular economy, amongst others.
Final thoughts
While details of the Enterprise Sustainability Programme have not yet been released, this is a key area which industry players should keep a close eye on. In order to meet the targets set out in the Green Plan, it is likely that the Enterprise Sustainability Programme will include incentives for companies to develop and deploy technologies in solar power, EVs and certain aspects of green finance. Incentives provided by the Singapore government could provide the push needed for Singaporean companies to enter into joint ventures with established global players or emerge as market leaders in the years to come.
For more information, please see the following links:
- Ministry of National Development, Singapore Green Plan 2030 Charts Ambitious Targets for Next 10 Years to Catalyse National Sustainability Movement (10 February 2021), Available at www.mnd.gov.sg/
- Green Plan, Our Targets, Available at www.greenplan.gov.sg/
- National Climate Change Secretariat, Carbon Services And Climate Finance, Available at www.nccs.gov.sg/
- Monetary Authority of Singapore, Greening the Financial System, Available at www.mas.gov.sg/
- National Research Foundation, Prime Minister's Office, Singapore, RIE2025 Plan, Available at www.nrf.gov.sg/
Client Alert 2021-101
