The South-east Asian region requires more than a trillion dollars to achieve its climate change targets by 2030. However, securing the necessary funding to reduce emissions necessitates governments to establish supportive regulatory and policy frameworks, instilling confidence in investors to engage in sustainable initiatives.
This was a prominent theme discussed during the inaugural day of Ecosperity Week, a sustainability conference organized by Singapore’s investment company, Temasek, held from April 15 to 17 at Marina Bay Sands.
During a panel discussion on April 15, Minister for Sustainability and the Environment Grace Fu underscored several key areas where policy frameworks could either facilitate or impede climate action.
To promote climate action, for example, governments can provide or facilitate infrastructural support – such as energy grids that can increase renewable energy deployment – and implement policies that spur innovation, she said.
Ms. Fu highlighted Singapore’s carbon tax scheme, noting that the country reinvests the revenue from carbon taxes back into the system. This reinvestment aims to stimulate research and development and incentivize industries to adopt newer clean technologies like hydrogen and carbon capture projects.
Furthermore, as Singapore aims to source around 30% of its energy from renewable sources in the region by 2035, infrastructural upgrades will be essential for upgrading the electricity grid and constructing power lines.
To finance these endeavors, the Government has established a future energy fund with an initial injection of $5 billion to support the infrastructural requirements of this transition to green energy, Ms. Fu revealed.
On the flip side, certain policies have the potential to hinder climate action. Ms. Fu pointed out the example of fossil fuel subsidies, which can distort market signals. These subsidies may pose challenges in scaling up renewable energy, even if the cost of renewable technology is comparable to that of fossil fuels.
Approximately 60% of the power generated in the Asia-Pacific region is derived from coal, a significant contributor to planet-warming emissions that exacerbate climate change.
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