SINGAPORE (CU)_Singapore is a city-state, smaller than New York City. The country, which mostly lies within 15 meters above the mean sea level, has launched several efforts over the years to preserve its coastline from rising sea levels since any increase would pose an immediate threat to the nation. Nevertheless, Finance Minister Lawrence Wong noted that along with the existential threat of climate change there also comes new opportunities, particularly linked to sustainability.
Joining the virtual CNBC Evolve Global Summit recently, the minister revealed that the city-state in the Pacific Ocean hopes to become a regional hub for green finance, as the government continues to invest more in building a sustainable economy. “We are investing in renewable energy. We are investing in decarbonisation technologies like hydrogen, carbon capture. And, we are also looking at building Singapore as a hub for the region when it comes to green finance,” he said.
When inquired about the criteria followed in making green investments, the minister noted that a range of different measures are being considered, including the efficiency of use of energy, carbon intensity and several other metrics that will enable decision-makers to ensure that the investments are “bona fide green investments”.
Last month, a new global exchange for high-quality carbon credits was set up in Singapore by Asia’s largest lender DBS Group, in partnership with the Singapore Exchange, Standard Chartered bank and state investor Temasek. Moreover, a couple months ago, Temasek, together with asset manager BlackRock, committed to invest $600 million in order to reduce greenhouse gas emissions.
Over the recent years there have been growing concerns over rising temperatures which would lead to a climate disaster if meaningful action is not taken. Therefore, many countries, including some of the most developed economies have pledged to achieve carbon neutrality by mid-century in order to limit global warming to well below 2°C as set out in the Paris Agreement.
