Key Proposals to Drive Singapore’s Transition to a Low-Carbon Economy
SINGAPORE: In a pivotal parliamentary debate on climate action, Members of Parliament (MPs) have proposed measures to boost green employment, enhance green finance, and address the issue of greenwashing. The motion, passed on January 12, calls for the Singapore government to work closely with the private sector, civil society, and communities to foster a sustainable, low-carbon future.
The motion, spearheaded by Ms Poh Li San (PAP-Sembawang), garnered support from various MPs across party lines and emphasized the importance of ensuring that Singaporeans benefit from the green transition. Over 19 MPs contributed to the debate, which lasted more than five hours.
Green Job Creation
Ms Poh highlighted the importance of ensuring that Singaporeans are equipped with the necessary skills to thrive in the green economy. In the short term, she recommended leveraging existing educational institutions to roll out training programs, while Ms Hany Soh (PAP-Marsiling-Yew Tee) called for more sustainability courses in Institutes of Higher Learning (IHLs). Ms Soh also advocated for expanded internship opportunities to provide hands-on experience in green industries.
However, MP Rachel Ong (PAP-West Coast) raised concerns over the relatively low graduate employment rates in green sectors, particularly among environmental engineering graduates. She suggested closer collaboration with the private sector and educational institutions to address the mismatch between skills and job market demand.
Carbon Credit Trading
The debate also touched upon carbon credit trading, which allows companies to offset their carbon emissions by investing in environmental projects like reforestation. Nominated MP Professor Koh Lian Pin emphasized the need for these projects to provide genuine, lasting benefits, not just mitigate climate change but also support biodiversity and local communities.
MP Derrick Goh (PAP-Nee Soon) proposed that Singapore position itself as a global leader in carbon services, capitalising on the growing demand for carbon credits. He suggested creating a robust regulatory framework to foster trust in carbon markets, allowing Singapore to take a leadership role in the sector.
Strengthening Green Finance and Corporate Accountability
The motion also addressed the importance of enhancing green finance. MP Don Wee (PAP-Chua Chu Kang) called for the government to promote sustainable financing by encouraging statutory boards to issue green bonds. He also suggested setting annual green bond targets, including a retail green bond linked to Singapore’s sovereign rating, to attract local green investors.
MPs also stressed the need to combat greenwashing—the practice of making misleading claims about a company’s environmental efforts. MP Nadia Samdin (PAP-Ang Mo Kio) proposed developing a national sustainability accounting strategy to standardize environmental, social, and governance (ESG) disclosures. MP Gan Thiam Poh (PAP-Ang Mo Kio) recommended introducing a nationwide green certification system to improve transparency in green finance reporting.
Ministerial Responses
Minister for Sustainability and the Environment Grace Fu acknowledged the importance of robust sustainability reporting and corporate governance. She confirmed that Singapore’s Exchange is working on mandatory climate-related disclosures for listed companies, with the Monetary Authority of Singapore (MAS) consulting on similar measures for financial institutions.
Regarding carbon markets, Minister Fu noted the challenges of ensuring environmental integrity in carbon credits, highlighting Singapore’s role in facilitating global discussions on carbon offset standards under the Paris Agreement.
Singapore as a Green Finance Hub
Trade and Industry Minister Gan Kim Yong outlined Singapore’s ambitions to become a regional leader in green finance, noting that the country is already a key player in Southeast Asia’s sustainable debt market. He also mentioned efforts to standardize cross-border carbon credit transactions and build the necessary infrastructure to support the green economy.
In closing, Ms Poh likened climate action to a parable of blind men describing different parts of an elephant, emphasizing that achieving success in mitigation requires a clear, shared understanding of the urgent challenges Singapore faces. She expressed confidence that with a united commitment to sustainability, Singapore can lead the way in the green economy while ensuring that no one is left behind.
