Committee of Supply – Head L (Ministry of Sustainability and the Environment)

Head L (cont) –

Resumption of Debate on Question [7 March 2022],

"That the total sum to be allocated for Head L of the Estimates be reduced by $100." – [Mr Louis Ng Kok Kwang].

Question again proposed.

Ms Foo Mee Har (West Coast): Mr Chairman, should I take two cuts together?

The Chairman: Yes, please. There is only one cut right?

Ms Foo Mee Har: There is another one at the end.

The Chairman: Alright, you can take that later. Take this one first.

Innovation for Green Economy

Ms Foo Mee Har: Okay.

Chairman, the Singapore Green Plan 2030 is well-timed to galvanise a national movement, not only to achieve sustainable development but also to build exportable capabilities, such as sustainable urban solutions. Our green agenda holds much promise for our future. The issuance of Green Bonds will provide a substantial capital base for sustainable developments not only in Singapore, but also throughout the region. Singapore is well-positioned to serve as a living lab and test bed for emerging green technologies as well as a hub to foster collaboration and co-creation.

It is critical that in our drive for sustainability, we fully leverage this opportunity to groom a new generation of green local firms, support them to build their green capabilities and position them to capture emerging opportunities.

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So, I would like to ask the Minister what can be done to ensure that the development of green local firms is an integral part of the $25 billion investment under RIE2025. We should consider a special programme, with R&D funding to be carved out, especially to support and promote development of green technologies and solutions by our very own local firms and startups.

Sir, with SME making up 99% of Singapore enterprises, the need to embrace climate change and sustainability is also a matter of business survival. With successive carbon tax increases in the pipeline, as well as increasing demands from partners, investors and customers for sustainable practices, SMEs need support to pivot and adapt, in order to thrive.

I would like to repeat my call to support SMEs in the transition on three fronts. First, we can promote sector-based sustainability roadmaps with industry-aligned principles, frameworks and uniform standards. Second, we need to support SMEs with pre-identified sector-based green solutions to fast track their adoption. Third, we can leverage the ecosystem to build scalable green capabilities and collaboration.

Sir, the introduction of the new Enterprise Financing Scheme Green (EFS-Green) to support local farms with a range of financing needs, from developmental capital to a venture debt, is a great initiative. With the Government providing 70% of reshare to catalyse lending by participating financial institutions, there have been calls by the industry for more favourable terms, such as preferential interest rate and loan terms, in order to spur adoption.

Question proposed.

Carbon Capture

Mr Leon Perera (Aljunied): Mr Chairman, Sir, nature-based climate solutions are powerful methods of carbon capture. They also have the added benefit of protecting ecosystems. As we move to set up our carbon trading hub and companies consider buying carbon credits from overseas entities to offset emission, there is a pressing need to ensure projects are socially sustainable. Lack of local buy-in, poor oversight and poor management can result in projects with less carbon capture than what companies pay for.

Indonesia's Katingan Mentaya project has reportedly been one such case. A Nikkei investigation found that more carbon credits were issued than it could likely make good on. Poor quality credits diminish accountability and reduce the emissions captured. Crucially, they could impact the Singapore brand. Renewable projects funded by Government-linked companies (GLCs) should also be accountable for Environmental, Social, Governance (ESG) impacts. Reports mentioned that the Laos hydro projects could be negatively impacting food production, ecosystems and indigenous communities.

With Keppel recently signing its hydroelectricity import deal, I hope that our GLCs pay attention to such externalities. Impacts can be minimised with the adoption of free prior and informed consent policies. I would like to suggest that the Government step in to recommend consistent, baseline, transparency and traceability, and due diligence process guidelines for such renewable projects. This is important from the standpoint not only of promoting green outcomes, but for our national brand as well,

Lastly, my Parliamentary colleague, Assoc Prof Jamus Lim, previously expanded on the potential soft power benefits of having a foreign aid agency. Such an aid agency could support targeted cash transfers to indigenous and rural communities to manage and protect forests abroad. NGOs, like Cool Earth, already do this and one UN Food and Agriculture Organization (FAO) report studying Latin America found this to be a cost-effective way to preserve forests. In Indonesia, there are already community-managed forests.

Sir, we should come in to support such efforts as good neighbours on the same pale blue dot.

The Chairman: Ms He Ting Ru. She is not here. Prof Koh Lian Pin.

Building a Green Talent Pipeline

Prof Koh Lian Pin (Nominated Member): Chairman, as Singapore positions itself to become a leading climate services hub, we need to develop a healthy pipeline of talents for our green economy. What are the Government's plans for building a Singapore core of industry-ready talents to support our emerging sustainability sector, especially in relation to our Industry Transformation Maps?

Has the Ministry assessed whether our Institutes of Higher Learning (IHLs) provide adequate training and upskilling programmes on sustainability-related competencies at the undergraduate, graduate and continuing education levels, to address talent gaps in our emerging sustainability sector? Are there plans to consult the public, private and people sectors, including IHLs, businesses, green groups and our youth, on the demand, content and modes of delivery for these training and upskilling programmes?

To build a vibrant and impactful sustainability ecosystem in Singapore, we should welcome and, indeed, encourage the participation of international organisations, including research and educational institutes, service providers and non-profits, to contribute to Singapore's efforts in building a green talent pipeline towards our sustainability goals.

But, crucially, to ensure success for Singapore's sustainability goals, we need to work closely with international stakeholders to build a common and deep understanding of Singapore's existing capabilities and gaps, ongoing efforts and investments and long-term vision and mission for sustainability, so that they might truly engage, collaborate and uplift our local enterprises, IHLs, civil society groups and other Singapore stakeholders.

What steps is the Government taking to ensure that all stakeholder participation in our sustainability journey will be well-coordinated, complementary and synergistic to ensure that all stakeholders work towards the common goal of building a Singapore core of talents and expertise to achieve our sustainability ambitions?

The Chairman: Mr Saktiandi Supaat, please take your two cuts together.

A Sound Carbon Credit Trading Ecosystem

Mr Saktiandi Supaat (Bishan-Toa Payoh): Mr Chairman, Minister Tan See Leng mentioned that Singapore could harness its robust legislative commodity trading and financial services foundation to develop an international trusted carbon services and training ecosystem here. We are not the only ones interested. Other countries, like China, Vietnam, Indonesia, Thailand and the Philippines, are all taking steps to establish its own carbon markets or frameworks to trade carbon credits. We need to coordinate a holistic inter-agency effort to create a vibrant marketplace with many active participants with clear ESG and carbon credit standards in place.

At present, carbon markets are plagued by low liquidity, scarce financing, inadequate risk management services and limited data availability. We will need to further encourage our financial institutions (FIs) to get involved to meet the liquidity and financing difficulties. Market infrastructure should develop along with deliberate and calibrated regulation by MAS and MinLaw. For example, what would be the risk-weighted asset, or RWA, to be associated with carbon credits? For FIs holding carbon credits, will we need clearing houses to mitigate risks? At the moment, the weights are high and unclear.

While the Government's decision to allow businesses to use high-quality carbon credits to offset up to 5% of the taxable emissions will help stimulate local demand for such credits, as with many other things, we must also look to cater to external demand. MTI and MFA must engage our partners to ensure that our carbon credits will be accepted in other countries, too. We may need to provide it in our Free Trade Agreements so that other countries cannot take protection and discriminatory approach.

Further, given our lack of natural resources, including land, we are unlikely to have any huge wind farms or hydroelectric plants that can originate a large amount of carbon credits for sale. We, therefore, require our agencies like EDB to go out and attract project developers to bring and sell their carbon credits in Singapore with an "ASEAN Registry" of sorts set up. We will also need to train the necessary subject matter expertise in our workforce, whether through our tertiary institutions or our various work training programmes.

Can the Government provide an update on our efforts to build a carbon credit trading ecosystem? Will we expect to see a detailed roadmap outlining how and when we will get there?

Efforts to Transform the Energy Sector

One of the most far-reaching crises today is the global energy crunch. Increased fuel consumption from an economy recovering from COVID-19, production outages and geopolitical events have driven up prices.

Presently, almost 95% of Singapore's electricity is generated using imported natural gas. Hence, our push to transition into a low-carbon energy future cannot come at a more opportune time. However, given our limited size, what challenges does the Government expect with energy transition and what measures have been put in place to ensure a smooth transition?

For Singapore, solar energy appears more promising than other renewable energy sources like wind or hydro. Can the Government provide an update on our solar development and deployment plans and whether there are any efforts to accelerate solar deployment? Will we look to incentivise individual households to install their own solar panels to defray their own consumption?

Transforming the Energy Sector

Mr Shawn Huang Wei Zhong (Jurong): Mr Chairman, I would like to declare my interest as the founding director of Green SG, a registered charity that aims to catalyse and accelerate green action and develop future leaders for sustainability.

The price of natural gas spiked 25% in the UK to hit a record high last Friday. Italy uses natural gas to generate 40% of electricity demands and imports 90% of its natural gas, mostly from Russia. It is looking for alternatives from Algeria and Azerbaijan. In Germany, there were thoughts of cancelling plans to shut down nuclear plants and ramp up coal-powered generators.

Heavy industries are affected and are reducing production and shortening of working hours. Energy supplies cannot be replaced overnight. Power generation infrastructure cannot be built over a short period of time. We are well reminded of the 1973 oil crisis caused by the OPEC embargo; the 1990 oil shock caused by the Gulf war; 2001 California electricity crisis caused by market manipulation by Enron. And to remember that peak oil is on the horizon and oil production will go on a terminal decline.

We must, therefore, plan our energy transition well, well-diversified with price stability and affordability. How we plan our energy transition will affect future generations and the security of our economy.

As such, I would like to ask the Minister to share more on expected challenges ahead and how the Government will ensure a smooth energy transition. What is our latest progress and future plans for our solar deployment? How will our energy transition impact future electricity prices?

Efforts to Decarbonise Transport System

Mr Saktiandi Supaat: Mr Chairman, the Government has announced that, upon review, it will bring forward the timeline for us to achieve net-zero around 2050. Pre-pandemic, transport accounted for 16.2% of Singapore's carbon emissions. This is already a lower percentage than the US, UK and the global figure, but it is still a significant piece as we look out to cut our carbon emissions. What are the Ministry's plans to reduce transport emissions on land, air and sea?

A key pillar of our efforts to decarbonise our transport system is the adoption of electric vehicles, or EVs. Our Land Transport Master Plan 2040 aims to phase out internal combustion energy vehicles by 2040. To successfully do so, we must make EVs a financially sensible option for users, capitalise on rapid technological advancements and ensure that our infrastructure is integrated to support this switch to EVs.

Presently, a major obstacle to private adoption of EVs is the prohibitive costs involved. Vehicle prices in Singapore are already among the world’s highest, with our COE system to control the vehicle population in land-scarce Singapore. As most electric cars have a higher power output than the 97-kilowatt (kW) threshold under CAT A, they fall within CAT B where COE prices has recently soared past $93,000. This discourages the uptake of EVs and is likely preventing a wider choice of EVs from entering the Singapore market. We may need to relook how our EVs are classified for COE purposes.

Another question is whether the existing incentives and rebates for EVs are sufficient to affect consumer behaviour to the desired level. Given Singapore's car-lite strategy, we probably cannot afford to give EV owners a two-year road tax exemption like how Malaysia has done. However, we do need to study our incentive and rebate structure to see if any revisions are necessary. For example, I understand that road tax for EVs is currently based on the simple addition of the power output of its motors and this may lead to weird situations where an EV is taxed based on a total added output of 390 kW even though it can only deliver a maximum combined output of 240 kW.

Harnessing technological advancements can also promote the adoption of EVs by enhancing convenience and efficiency. Battery swapping technology has been tried and tested in markets like China and Norway and represents a more efficient proposition to users than electric charging at charging stations. This could complement our existing strategy of building more EV charging points closer to where people live.

Finally, the recent episodes of personal mobility device fires remind us of how the stability our vehicular batteries can become a safety issue. We must reassure the people that EVs are a safe option before they can decide to embrace it. Can the Ministry share more about its overarching strategy to further stimulate EV adoption among road users in Singapore? Would the Minister consider introducing an early adoption incentive for electric motorcycles?

11.30 am

Electric Vehicles (EVs)

Mr Ang Wei Neng (West Coast): Chairman, the number of registered EVs in Singapore more than doubled, from 1,397 EVs in year 2000 to 3,713 EVs in 2021 or last year. Most of the individuals who bought EVs are likely to stay in landed properties due to the high cost of EVs and the ease of installing mid-range EV home chargers for about $2,500 at the comfort of their home. Can MOT shed some light on the demographics of the first wave of EV buyers in Singapore? Before I proceed, I would like to declare my interest as I work in the transport industry.

I have always maintained that whether EVs can take off in the mass market segment is dependent on whether we have sufficient public charging stations in Singapore. This is a chicken-and-an-egg situation. If we leave it to market forces, few will be willing to install charging stations in large numbers. Thus, it is very important for Singapore to decisively incentivise companies to build EV charging facilities ahead of demand, like what the European countries and China have been doing. In particular, I would like to suggest four areas for MOT to consider.

First, many commercial properties are not able to install fast-charging stations at their commercial buildings because these fast-charging stations are needed by the large fleet owners, because they have to pay a high fee to build substations or upgrade the grid. So, I would urge the Government to consider paying for the upgrading cost of the grid and the expansion of the electric substations.

Second, to encourage the growth of the EV mass market segment, the Government can consider providing significant incentives for companies to install up to five charging stations at all HDB car parks that have a sizeable number of parking lots.

Third, for condominiums, few MCSTs are successful in installing the charging stations because they need to go through a long and tedious process to obtain the residents’ support. Could LTA work with MND to consider mandating all condominiums with a sizeable number of parking lots to install charging stations? Would it be possible for the Government to provide incentives for doing so, especially for the early adopters?

Fourth, would the Government consider mandating all commercial properties, including shopping centres and malls with sizeable parking lots, to install charging stations?

After solving the supply side of installing charging stations, we need to provide incentives to increase the ownership of EVs, like what Norway and China have been doing. In Norway, almost 65% of all new passenger cars sold in 2021 were EVs. How did Norway do it? The Norway government taxed internal combustion engine (ICE) vehicles very heavily, but does not tax EVs at all.

In Singapore, the various incentives for the early adoption of EVs can amount to $45,000, but only the more expensive EV models get to enjoy these maximum savings. To further encourage the adoption of mass market EVs, I would like to propose reducing the 20% excise duty of EVs with Open Market Value (OMV) of less than $30,000. The reduction in the excise duty should be inversely proportional to the EV’s OMV, so that there would be a bigger discount for a cheaper EV. This would prevent profiteering by EV distributors and make EVs more affordable to the masses.

The Chairman: Mr Gan Thiam Poh. You can take your four cuts together.

Reduction of Transport Emissions

Mr Gan Thiam Poh (Ang Mo Kio): Thank you, Chairman. We can expect emission improvements from passenger cars as we require all newly-registered vehicles to be cleaner-energy models from 2030. What about lorries, buses, and coaches and other heavy-duty vehicles? What are the Ministry’s plans to reduce transport emissions? Will the Government increase the use of incentives for the use of EVs and other clean energy vehicles?

Industry Standard for Electric Vehicles and Electric Vehicle Batteries

With the steady increase in EV adoption and EV charging, will the Government set up a dedicated certification centre to oversee the safety and reliability of EVs and their charging points and batteries? What is the progress to set up a framework for the industry's safety standards for EVs and EV batteries permitted in Singapore?

Electric Vehicle Adoption and Charging/Battery Change

Would the Ministry give an update on EV adoption so far and whether the set-up of charging points and provisions for battery changes are on track? Would the Ministry encourage more private participation, including the utilities companies, as what other countries have done, to set up and offer EV fast-charging services as well as battery changing services?

Incentives for Adoption of Electric Vehicles

Transiting to a greener transportation sector will require quicker adoption of EVs by users. Will the Ministry consider further incentives and tax rebates to encourage the purchase and use of EVs, including commercial vehicles, such as vans, buses and coaches? How will the Ministry facilitate and expedite the electrification of our public transport fleets?

Rollout of Electric Vehicle Chargers

Ms Yeo Wan Ling (Pasir Ris-Punggol): In embracing EVs, perhaps the biggest hurdle in the smooth transition to popular adoption of EVs is the issue of infrastructural coordination. For instance, what is the schedule like for charger deployment and how would this be synced with the gradual adoption of EV models? Will there be priority given to livelihood vehicles like taxis and PHVs at charging docks? Would the Government regulate the cost of charging? Could the Ministry give a clearer account of the overall plan on how the charger deployment will be financed and accelerated?

Raising the Attractiveness of Electric Vehicles

Mr Chua Kheng Wee Louis (Sengkang): In 2021, Singapore's population of electric cars more than doubled from 1,217 to 2,942 cars. This, however, only represents 0.5% of the 645,000 cars in Singapore today. So, this uptick is encouraging, considering that much of it was contributed by the increase of 924 units in the number of Tesla's here in Singapore, which costs about S$200,000 each.

The economics of EVs currently is still such that it is difficult for the average Singaporean to adopt EVs. EVs are much more expensive compared to the equivalent for internal combustion engine (ICE) cars and you see that the Hyundai Ioniq Electric, after considering various rebates, retails for $173,000, that is, $45,000 or 35% more, compared to the $128,000 for the Ionic Hybrid, and $65,000 or 59% more than the $108,000 for the ICE Hyundai Avante.

I believe more can be done to ensure that we phase out ICE vehicles ahead of 2040, especially in the context of Singapore's COE system. Norway, for example, saw 84% of new car sales in January being all electric.

Even as EV prices start to come down with advancements in manufacturing, the disparity in price between EVs, after factoring in Government incentives, are still significant. EV owners will also expect to fork out an additional tax of $700 a year from 2023, introduced to partially cover the loss in fuel excise duties from ICE cars, with the higher charges already starting to be phased in since 2021. This reduces the attractiveness of EVs to consumers at a time where we should be pushing forward for adoption.

I hope the Government will also consider longer-term policies, such as preferential access and toll rates, which have been shown to show a significant impact on boosting EV sales in Oslo and several Chinese cities. We also need to accelerate the rollout of EV-charging points across Singapore to further incentivise EV adoption and ensure it is both economical and practical for Singaporeans to adopt EVs.

Green Transition in Last-mile Logistics

Mr Dennis Tan Lip Fong (Hougang): The increase in our green ambitions requires us to look at emerging trends in last-mile logistics. Online retail sales have averaged 13.5% in total retail sales in Singapore in 2021, compared to an average of 5.4% of retail sales between 2018 and 2019.

This has meant great convenience to Singaporeans who purchase from online platforms, but it also is likely to mean that there is more demand for last mile logistics. Today, all types of goods vehicles are of the diesel engine variety. The increase in demand for last-mile logistics will mean an increase in our carbon footprint.

A study by the World Economic Forum in 2020, prior to the pandemic, indicates that the expected growth in last mile delivery is likely to increase carbon emissions by 30% by 2030. The accelerating effects of COVID-19 would have increased the carbon emissions more rapidly. To be clear, the Government has taken some steps to mitigate the issue. During the COS last year, then Minister for Transport Ong Ye Kung made the announcement that no new diesel cars and taxis will be allowed to be registered from 2025.

The current Commercial Vehicle Emissions scheme, which started in April last year, was designed, in part, to persuade owners of light commercial vehicles, which make up 68.9% of all goods vehicles, over to vehicles that burn cleaner fuels. We have also seen electric light commercial vehicle models increasingly being rolled out by manufacturers, such as Renault, Opel and BYD.

The main constraint is electric charging infrastructure, which is still in its infancy. I, therefore, wish to seek updates from the Minister on the plans for a green transition for such goods vehicles, starting with an update on the Government's targets to convert goods vehicles to EVs and other green options and plans to achieve these targets.

Will the Ministry be getting more industrial estate operators to roll out more EV charging infrastructure around industrial areas and encourage a switch to electric light commercial vehicles and vans? Will there be subsidies for companies that adopt these EVs early?

Regulations on Electric Vehicle Chargers and Operators

Prof Koh Lian Pin: Chairman, the EV charging sector is growing rapidly with the acceleration of EV adoption. Has the Ministry considered the need to strengthen regulations on EV chargers and EV charging operators, to ensure a safe and reliable charging network?

Public Transport Greening Targets

The Government has announced targets for the greening of our public transport and point-to-point fleets by the year 2040. Will the Ministry be announcing further details of our EV roadmap, particularly in relation to any intermediate targets for the greening of our public transportation fleets, similar to what has been done for private vehicles?

R&D in Urban Sustainability

Miss Cheryl Chan Wei Ling (East Coast): Chairman, at MND's COS 2021, I said that for urban infrastructures to be more climate-resilient, it is imperative to adopt the use of existing climate change information and resources for urban planning. Further, to have buildings designed with lower carbon emissions and for sustainable maintenance, we should incorporate innovative design solutions.

The Government announced then that it is driving R&D in urban sustainability, such as climate-resilient urban infrastructure with reduced carbon emissions. Can the Minister provide an update on the progress made and how the Government plans to encourage stakeholders to adopt these solutions further?

Often, when people think of sustainable projects, they will, naturally, associate it with higher costs. However, that is because they did not consider sustainable principles in the project planning for building lifecycle costs. By optimising resources during the planning stage to evaluating environmental and performance trade-offs, finding a good balance between capital and lifecycle costs, it can effectively improve the outcome of the system.

The push towards a low-carbon built environment also has to do with scale, speed of adoption and investment in technologies. When larger players in the value chain utilise good asset management programmes and invest in technologies at scale, the trickle-down effect will benefit the smaller players, too.

With emerging trends in sustainability towards dynamic master planning for city planning or utilities, I believe we can leverage algorithms and digital tools to predict and test extensive scenarios to better organise capital allocation, project prioritisation and develop strategies to improve the city’s resilience and liveability.

With all these giving momentum to the industry and deepening research for solutions, we will soon be able to put sustainability concepts into real-world practice. I would thus like to ask BCA: apart from the sustainability guidelines, as introduced for existing and new buildings, how is BCA supporting the industry to effectively transit to a low-carbon built environment?

Mr Cheng Hsing Yao (Nominated Member): Sir, Singapore should build up our capabilities in urban sustainability to help solve our own problems and to develop an exportable industry. To do so, we can look at R&D and talent development. The Government announced last year it is driving R&D in urban sustainability. Can MND update on the progress of the efforts in R&D?

As the R&D topics are so wide-ranging, does it make sense to focus on specific areas, such as coastal protection and issues unique to the region or the tropical belt? This can help us focus, as well as differentiate, our capabilities. Can the R&D be commercialised by Singapore companies and developed into exportable services?

The built environment (BE) sector will be the key sector that needs to be transformed to fulfil our future urban sustainability needs. However, the built sector has difficulty attracting more talent.

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To build up a critical mass of talents, we should have a holistic approach. For example, curriculum in schools and tertiary institutions should be updated and jobs redefined to better reflect the new capabilities needed.

It may also be useful to reframe the built environment jobs to better reflect their contribution. Jobs in this sector are not just about building things. Rather, they help to enhance our liveability, support our economy with intelligent infrastructure while allowing us to be sustainable. We should also seek more ways for public-private sector collaboration. For example, I co-chair with BCA the Central Procurer Panel that works with various built sector trade associations and chambers (TACs) to administer accreditation of professions, such as construction manager, surveyor and facilities manager. The aims are two-fold: one, to help employees with continuous learning and upgrading of their professional skills; two, to help employers better recognise and reward higher skill levels.

Can MND comment on how to better build up a critical mass of talents in urban sustainability?

Developments in Urban Sustainability

Dr Shahira Abdullah (Nominated Member): Singapore has taken the bold step of enhancing its climate change target and having its carbon emissions target set to net-zero by around 2050. This is especially reflected in its plans for urban development. The Government aims to green 80% of Singapore's buildings by 2030. We can do so by designing and constructing greener buildings. Currently, buildings account for over 20% of Singapore's carbon emissions. In addition to that, according to the Singapore Green Building Council, the shorter building lifespans due to urban renewal means that embodied carbon emissions could go up to 40%. How will BCA continue to support our transition to a low-carbon built environment?

The Government is also driving R&D in urban sustainability. This is to ensure that our urban infrastructure is made more climate-resilient while reducing carbon emissions. Can the Ministry give an update on the progress made and how it plans to encourage or incentivise stakeholders to adopt these solutions?

Singapore Green Building Masterplan

Prof Koh Lian Pin: It has been a year since MND announced the latest edition of the Singapore Green Building Masterplan. May we please have an update on the progress made so far? Buildings account for over 20% of our carbon emissions. How will the Building and Construction Authority support our transition to a low-carbon society?

The Government announced during the Committee of Supply 2021 that it was driving R&D in urban sustainability with the goal of enhancing the climate resilience of our urban infrastructure while reducing their carbon footprint. May we please have an update on the progress made so far? How does the Government plan to encourage stakeholders to adopt these solutions?

New Residential and Commercial Buildings

Mr Abdul Samad (Nominated Member): Chairman, we have seen that many of our existing HDB and commercial buildings have installed solar panels on their respective rooftops. Can we know how much energy efficiency and savings have been made since the installation? Some of my friends and cousins have been asking what does this bring to them as residents? Can the Ministry also share their plans for those remaining HDB blocks and do we actually target to do for all the residential properties? If so, what is the timeline that we aim for? In addition to that, is MND also planning to do this for the new HDB residential properties via the BTOs and the new buildings upcoming?

I would also like the Minister to share how can the residents know the value of the solar panels installed on top of their blocks. This knowledge will go a long way in educating not just adults but everyone in the household. Will HDB start to explore having solar window panels so that residents can also play their part in adopting solar consumption?

On the commercial building front, will there be plans to move our old existing substations, with their reasonably large land spaces and even those on prime land, underground? I understand there is, currently, an ongoing construction of an underground transmission substation, with commercial buildings above it. Will it just stop there or will it increase progressively over time?

The Chairman: Mr Xie Yao Quan, you can take your two cuts together.

Low-carbon Built Environment

Mr Xie Yao Quan (Jurong): Thank you, Mr Chairman. Buildings account for over 20% of Singapore's carbon emissions. Therefore, green buildings will be a key lever for our net‐zero ambitions. How will MND and BCA continue to support our transition to green buildings and a low carbon built environment?

Also, MND announced last year that it was driving R&D in urban sustainability such that our urban infrastructure is made much more climate‐resilient while reducing carbon emissions. Can we have an update on the progress made and how MND plans to encourage stakeholders to adopt these solutions? Have we achieved any innovation that has the potential to be commercialised and exported to the world?

Green HDB Estates

Mr Chairman, HDB envisages the Green Towns Programme as a 10‐year plan that aims to reduce energy consumption, recycle rainwater and cool the built environment in all HDB towns. Can MND provide an update on the progress of the HDB Green Towns Programme? I know the target for solar panel installation has been revised upwards. How about the targets for other aspects of the programme? How much have we moved beyond pilots to deploy solutions at scale?

Rooftop Multi-storey Carpark Urban Farms

Ms Poh Li San (Sembawang): Mr Chairman, to support our goal of growing 30% of our local nutritional needs by 2030, the Ministry should encourage more local community efforts, such as growing small edible plants in households and available plots in housing estates. Urban rooftop farms on multi-storey carparks will not only contribute to this movement but also bring together neighbours in a meaningful endeavour and build social cohesion. How will the Ministry support such farming efforts?

Sustainable Built Environment

Ms Hany Soh (Marsiling-Yew Tee): Will MND consider incorporating green features into our HDB flats by adopting sustainable materials and designs in future housing projects, concurrently upgrading our existing ones through the Home Improvement Programmes? Many of our existing HDB flats comprise full-glass windows that transfer considerable amounts of heat through the afternoon sun. Will HDB consider appropriate greener alternatives, like installing low-heat transfer windows, to cool down our flats, thereby enabling residents to be less reliant on fans and air-conditioning and, indirectly, contribute towards saving their utility costs?

The Chairman: Miss Rachel Ong, you can take your two cuts together.

Recycling Efforts in Private Estates

Miss Rachel Ong (West Coast): Chairman, in my house visits and conversations with residents, I have observed increasing interest amongst private estate residents, specifically condominium residents, in being engaged in sustainability efforts. However, access to recycling bins for different materials is limited in condominium estates. In addition to keeping HDB estates sustainable, with the rising proportion of residents living in condominiums and other apartments over the last decade, it is vital that we also support these residents in Singapore's sustainability efforts. Can the Ministry share future plans to support and encourage recycling efforts in private estates, especially in the condominiums?

Improve Equity in Green Space Access

A 2018 study by Future Cities Laboratory found that the less-educated and less-wealthy people in Singapore are less actively engaged with urban nature, with potential negative impact for health and well-being. Understandably, expending finances on travel to nature reserves would not be a priority for the lower income. Many lower-income working adults also may have limited time to access nature. For some, the distance between their households and green spaces deters the frequency of their visits.

With this in mind, how will the Ministry continue to improve equity in green space access for the lower-income families, especially for our children?

Protecting our Green and Blue Spaces

Ms Nadia Ahmad Samdin (Ang Mo Kio): Chairman, Singapore has long been known as a Garden City. Two years ago, MND announced its plans to transform our green landscape even further, turning Singapore into a “City in Nature”. This includes dedicating another 200 hectares of nature parks by 2030 and having 300 kilometres of Nature Ways and 500 kilometres of park connectors by 2030. Could the Minister please give an update on the progress made so far in transforming Singapore into a City in Nature? Does NParks have further plans to enhance and expand Singapore’s green and blue spaces?

Ultimately, our green and blue spaces exist for our people and for future generations. As such, it is important for the community to have a voice in shaping the landscapes they live and play in. How can the Ministry better collaborate and consult with the community?

Furthermore, visitorship to our Southern Islands increased by 20% to 30% in 2020 and they are being promoted as a good escape from the city. What are the strategies to ensure that the amenities are kept up-to-date and the Ministry’s plans to balance competing priorities both on the islands and in the sea space surrounding it? Will the Ministry consider carrying out a capacity assessment to ensure our nature spaces are protected?

Climate Change Education in Schools

Prof Koh Lian Pin: Chairman, climate change and sustainability education requires the teaching of not only sustainability-related skillsets, values and principles but also the ability to think ecologically and holistically at a systems level. Future generations of Singaporeans need to be both digital citizens and ecological citizens.

Has the Government considered incorporating sustainability competencies and systems level thinking into our education curriculum at appropriate levels to ensure that our learners are well-equipped for a global green economy and will be ready to compete with global talent? Are efforts being undertaken to ensure teachers have access to sustainability resources and training in order to deliver such curriculum?

The Chairman: Ms Poh Li San, you can take your two cuts together.

Preparing Teachers for Green Economy

Ms Poh Li San: Mr Chairman, how is the Government preparing our teachers from Primary schools to Institutes of Higher Learning (IHLs) for the green economy? Do we have a roadmap for Universities, Polytechnics, ITEs, JCs and Secondary schools to support the green economy?

The Government will need to update the education curriculum and teaching materials for sustainability-related courses. Is this being done for our teachers? What are the programmes to train and equip our teaching staff with the latest skillsets and knowledge so that, in turn, they can teach their students the same required by businesses and industries?

Preparing Students for Green Economy

In order to prepare our students for the green economy, changes will need to be made to our curriculum. Has the Government set up a general roadmap for all our education institutions so that the design of the courses and programmes fulfil the wide-ranging demands of the green economy?

The inaugural Skills Demand for the Future Economy report has identified more than 450 green job roles across 17 sectors, ranging from manufacturing and trade and connectivity, to financial services and the built environment. How does MOE ensure that relevant courses, diplomas and degrees are offered in the IHLs and schools in order to prepare a pipeline of local talents to fill the jobs required for the green economy?

Considering lifelong learning now to be an integral part of Singapore’s education, the system should incorporate sustainability modules which can be picked up at all ages. Is provision being made for such flexibility in the SkillsFuture courses and programmes? How will the Government facilitate collaboration between education and training institutions, research and industry stakeholders to create relevant academic, internship and apprenticeship in sustainability-related industries?

IHL Efforts in Supporting Green Economy

Miss Rachel Ong: Chairman, in my speech supporting the second Parliamentary Motion on Climate Change earlier this January, I highlighted the need for our IHLs to enhance their course offerings in PET to better integrate sustainability-focused and related modules.

This is because, with the greening of jobs over time, increasing fields of disciplines will need to embrace sustainability in their practice.

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I also shared on the need to better complement PET curricula with CET Sustainability Modules to ensure that, by the time our students graduate, they are equipped with up-to-date skills and knowledge required for their fields.

Can the Ministry please share what efforts the IHLs are undertaking to further support the green economy and sustainable living?

Green Curriculum and Research

Ms Foo Mee Har: Chairman, the lack of understanding of sustainability-related concepts has been a barrier to galvanising strong action.

Our students, workers and businesses can seize opportunities in the green economy if equipped with the proper understanding of climate change and sustainable development. We should prepare them to grasp the science of global warming and the current and impending impact of climate change in their respective fields of work. We should enable them to position themselves to be the change needed in the world.

First, the challenges of sustainability can only be overcomed through the involvement of future generations. Our schools can play a fundamental role in enhancing our children's eco-literacy and nurture them to be stewards of our environment. I would like to ask the Minister to provide an update on how our primary and secondary schools are involved in preparing a new generation of students, who will drive the future of sustainable practices.

Our universities are well-positioned to be the key enablers for the development of the green economy in Singapore. New courses at NUS include a Major in Sustainable Urban Development, which "aims to train the next generation of urban problem-solvers". Other Autonomous Universities are also launching new courses on sustainability. So, the question I have for the Minister is how the respective IHLs will develop their unique programmes as well as combine their strengths to develop world-beating sustainable technologies and solutions.

Sir, the Finance Minister has committed that the carbon tax will not accrue to the revenue but collected to support the decarbonisation and transition as well as investment in green technologies and solutions. In the years to come, a significant amount of carbon tax will be deployed as Singapore progressively raises the carbon tax rate to $50 to $80 per tonne of emissions. So, what governance and accountability framework will be put in place to determine and monitor the spending of green R&D as well as to assess outcomes? I would like to request the Minister to provide an update on how Singapore is developing capabilities in renewable energy, urban solutions, green infrastructure and clean transportation.

The Chairman: Senior Minister Teo Chee Hean.

The Senior Minister and Coordinating Minister for National Security (Mr Teo Chee Hean): Mr Chairman, Sir, climate change is a real and existential threat. The latest findings from Work Group 2 of the Intergovernmental Panel on Climate Change (IPCC)'s Sixth Assessment Report, which were released last week, assessed that the impacts of climate change are more apparent and will affect us more severely than previously thought. We are already seeing some of these effects – stronger and longer heat waves, unprecedented droughts and floods, rising sea-levels and storm surges affecting communities all over the world.

In the past year, international resolve to take urgent and decisive action to reduce greenhouse gas emissions has grown. In November 2021, as part of the 2021 United Nations Climate Change Conference (COP26) Glasgow Climate Pact, it was agreed that all Parties should aim to achieve global net-zero emissions by mid-century, in order to keep the 1.5-degree goal within reach.

Members of this House have also called for more decisive action on climate change. Indeed, since 2021, this House has debated two Motions on climate change. This House has acknowledged climate change as a global emergency and called on the Government to accelerate efforts against climate change. Members made several suggestions, including increasing the carbon tax substantially, green financing, creating green jobs and strengthening corporate accountability.

Mr Chairman, Singapore has taken important steps to contribute to the global effort to tackle climate change. Two years ago, Singapore submitted our enhanced Nationally Determined Contribution (NDC) for 2030, and our Long-Term Low Emissions Development Strategy (LEDS) under the Paris Agreement – to halve emissions from our 2030 peak to 33 million tonnes of carbon dioxide equivalent by 2050, with a view to achieving net-zero emissions as soon as viable in the second half of the century.

Miss Cheryl Chan, Ms Poh Li San, Mr Louis Chua, Mr Louis Ng and Prof Koh Lian Pin asked about Singapore's key considerations and the process for setting our climate targets and the timeframe. In our LEDS two years ago, we laid out three thrusts to achieve our aspiration: first, transforming our industry, economy and society; second, harnessing low-carbon technologies; and third, pursuing international collaboration, for example, in the form of carbon markets and electricity imports. We said that we would continue to review our climate goals with the aim of achieving net-zero emissions as soon as viable. If the potential emissions reductions from each of these thrusts are available sooner, we will be able to realise our goals earlier.

Mr Chairman, since then, there have been important developments at COP26 in Glasgow. This marks an important inflection point. More countries pledged to reach net-zero by mid-century. More companies have also made net-zero commitments. This will spur greater investment in low-carbon solutions, making them technologically and economically viable earlier. The Paris Agreement's Article 6 rulebook for international carbon markets was also finalised. With these important developments, we are now able to have greater clarity and to raise our ambition to achieve net-zero emissions by or around mid-century, in line with the Glasgow Climate Pact.

Mr Chairman, this is a significant improvement over our current LEDS. We are making a decisive move: one that is necessary, practical and implementable. We are making a commitment on behalf of generations of Singaporeans to come, spanning several decades into the future. I am glad that Members from both sides of this House support these moves.

Before we finalise our plans and declare a specific net-zero year, we will consult closely with industry and citizen stakeholder groups. This is because raising climate ambition will not only bring about many benefits but also entail some costs and trade-offs. These engagements will take place under the Green Plan and our broader SG Together movement. We will, at the same time, review our 2030 NDC. We will then declare and make a formal revision to both our NDC and LEDS later this year.

Let me elaborate on why we assess that we can now make this decisive move and why we should do so.

First, why we can. COP26 successfully finalised the rulebook for international carbon markets. Carbon markets allow Singapore to access global mitigation opportunities through international carbon credits and provide an additional option for us to decarbonise.

I thank Minister Grace Fu and our officers for playing a key role as co-facilitator of the COP26 multilateral discussions on Article 6 to finalise these rules. This was one of the most difficult negotiations in COP26. These rules lay the foundation for rigorous, robust and credible carbon markets and provide clarity on environmental integrity and accounting by buyer and seller countries when reporting their national emissions. They enhance the transparency of international carbon trading and provide the necessary quality assurance for Singapore to use high-quality international carbon credits to help meet our climate goals.

I agree with Mr Henry Kwek on the need to strike the right balance between pursuing domestic mitigation and using carbon credits. As we strive to reach net-zero earlier, we will need to do both. We will continue to prioritise domestic efforts to meet our climate goals. However, as a small, alternative energy-disadvantaged city state, we will need to look beyond purely domestic mitigation and consider other measures, such as importing low-carbon hydrogen and carbon capture, utilisation and storage, which are reliant on international cooperation. Carbon credits will help offset our residual emissions to reach net-zero and, at the same time, spur the development of high-quality carbon markets in Singapore.

Second, major countries and companies are making substantial investments in decarbonisation technologies, making them technologically and economically viable earlier. Global investment in energy transition hit a record high of over S$1 trillion in 2021, an increase of 27% over the previous year. Under our own Research, Innovation and Enterprise (RIE) 2020, we had invested about S$370 million in decarbonisation solutions over the five-year period. And in the next five-year period, this will continue to be a priority in RIE2025, where we will invest about the same amount, with potential for further funding from the White Space provision as needed. These investments in low-carbon solutions will drive down costs and accelerate technical viability and commercial scalability, allowing us to lower our emissions earlier.

The third reason why we can: more global corporates are making commitments to reduce emissions. When the global Climate Ambition Alliance was launched at COP25 in 2019, fewer than 100 companies committed to net-zero by 2050. But, just two years later, in 2021, some 5,000 companies had committed to net-zero – a significant 50-fold increase, which, we expect, will increase further.

Private financing is also shifting towards sustainability and low-carbon projects. At COP26, the Glasgow Financial Alliance for Net Zero, a coalition of 450 financial firms representing some 40% of global banking assets, pledged to make over S$170 trillion of private capital available for investment to reach global net-zero by 2050.

Sustainable private financing and corporate net-zero targets have a powerful mutually reinforcing effect. They draw capital towards sustainable projects and make it more difficult and expensive to finance projects which are not. This will not only accelerate global emissions reduction but also provide capital to create new economic opportunities in the global green economy.

With these positive international developments, we now have confidence that Singapore can more effectively find solutions to address our alternative energy constraints. We cannot wish these constraints away, but we now have more options to enable us to reach net-zero earlier.

Why we should? Mr Chairman, I have just explained why we now can move decisively to net-zero. I will explain why we should make a decisive shift. We want to take advantage of the positive global trends in sustainable financing and corporate net-zero targets to make Singapore an attractive place for green economic activities in industry, services and finance. This will reposition our economy and establish our competitive edge early in a low-carbon future. Let me describe some of the potential new growth opportunities.

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First, in existing industries. Manufacturing makes up about 20% of our GDP and offers many good jobs for Singaporeans. The world is moving away from traditional carbon-intensive industries. For example, the energy and chemicals sector is itself re-orientating to pursue sustainable production and new areas of growth. Singapore is positioning itself as a first mover to capture these opportunities and jobs.

In November last year, our Economic Development Board (EDB) announced the Sustainable Jurong Island plan to transform Jurong Island into a Sustainable Energy and Chemicals Park that makes and exports sustainable products globally. We are also moving ahead with plans to be a hub for sustainable aviation fuels and, in the future, for hydrogen.

Several major companies which already have a strong presence here have committed to making major investments in their operations and products to align with our mutual goals for zero emissions by mid-century. We hope to attract new companies, too, which share our sustainable net-zero ambition.

Second, we are a global financial centre. We are building the capabilities to catalyse sustainable and green finance in the region. Global sales of green bonds grew from nearly nothing in 2012 to S$380 billion in 2020. The Monetary Authority of Singapore and the Institute of Banking and Finance Singapore have set out 12 technical skills and competencies in sustainable finance to help financial institutions and training providers promote careers in sustainability and climate change-related jobs.

Third, growing new green sectors. We are developing Singapore as an international carbon trading and services hub with Singapore-based global carbon exchanges, such as Climate Impact X and AirCarbon Exchange. We will continue to develop the larger ecosystem by anchoring key activities, such as project development, financing and certification, in Singapore.

We will signal to global markets and corporates that Singapore is ready to be a good partner and location for forward-looking companies which have clear low-carbon goals. This will create many good jobs for Singaporeans and enhance Singapore's value proposition in the future low-carbon global economy.

Mr Don Wee, Mr Gan Thiam Poh and Miss Cheryl Chan asked how the revised carbon tax levels will support our green transition. As we make a decisive shift towards a low-carbon future, we need to provide the right price signal to shape responsible behaviour. We have always priced key resources like water, energy and waste disposal properly so that consumers and businesses make appropriate decisions, taking the true costs into account. This policy has served us very well.

In the same way, the revised carbon tax levels will provide the appropriate carbon price signal for individuals and businesses to internalise the cost of carbon emissions in their consumption and business decisions.

In Parliament last February, Members proposed raising the carbon tax, with suggestions ranging from $30 to $133 per tonne of emissions. I am glad that during the discussions of these two Motions this past year and, during this Budget session, Members from both sides of this House have so strongly spoken in support of a significant carbon tax. With your permission, Mr Chairman, may I display a slide on the House's screens and request the Clerks to distribute a document to Members?

The Chairman: Yes, please. [A slide was shown to hon Members.]

Mr Teo Chee Hean: Members may also access these materials through the SG Parl MP mobile app. Save some paper.

Our proposed carbon tax out to 2030 is set at a level that sends a significant price signal to influence consumer and business behaviour. Announcing our intentions and the expected trajectory early provides predictability for investment decisions. We also take reference from the carbon price levels of competitor jurisdictions.

China and South Korea, which submitted net-zero pledges within the last two years, have sizeable emissions-intensive sectors and export to our region as well. The International Energy Agency estimates that, to match their targets, China and South Korea would have carbon prices of S$45 and S$61 per tonne respectively in 2030. But we should bear in mind that they have a range of renewable alternatives, including nuclear, which is not available to us in this timeframe.

The 2030 projected carbon price for the European Union (EU) is about S$174 per tonne. The EU has legacy emissions-intensive sectors, some of which are still reliant on coal that will require considerable effort to decarbonise.

Another useful reference is the internal carbon prices that many corporates are already using to make their medium- to long-term business and investment decisions. For example, the multinational consumer goods company Unilever already currently uses an internal carbon price of S$77 per tonne and Temasek uses an internal carbon price of S$57 per tonne currently.

An appropriate carbon price will shape responsible behaviour. Individuals and households will have a greater incentive to adopt more sustainable lifestyles, such as conserving electricity and using more energy-efficient appliances. The savings from these changes will offset the increases in utility charges. The carbon tax will also provide the impetus for businesses to be more resource-efficient and invest in decarbonisation solutions.

Mr Don Wee, Ms Foo Mee Har, Mr Gan Thiam Poh and Miss Cheryl Chan asked how the Government will help minimise the impact of carbon tax on households and businesses and account for the use of the revenue collected from the carbon tax.

Mr Chairman, I would like to emphasise that the Government will not derive additional net revenue from the carbon tax. The Government will flow the additional tax collected back to help households and businesses transition to a low-carbon future.

Nine hundred and fifty thousand households have already benefited from U-Save rebates from 2019 to 2021, and we will provide additional support to help households manage the cost of utilities. But saving energy, and not just helping to pay the bills, is an even more important way to lower emissions and household utility bills.

As of January 2022, about 70,000 or 22% of eligible households have registered for the Climate-Friendly Household Package, which subsidises the upfront cost of switching to energy-efficient appliances for lower-income households and more than 19,000 vouchers have already been utilised. All in, Mr Chairman, almost a million households and more than 200 businesses have already benefited from these schemes that we have implemented over the years.

The carbon tax will fund additional schemes to support households and businesses to achieve greater carbon efficiency and decarbonisation, and these schemes will be subject to the usual stringent governance and accountability frameworks and key performance indicators (KPIs) for the use of public funds.

We recognise that it will not be easy for the emissions-intensive trade-exposed sectors to fully decarbonise their emissions in the near to medium-term while remaining competitive with other manufacturing locations. Therefore, we will also use the carbon tax collected to provide transitory support for existing investments which have contributed to the current and earlier phases of Singapore's economic growth. This will give them time to make the transition to a low-carbon economy without blunting the price signal and being very clear about what our trajectory is.

Mr Louis Ng asked to expand the coverage of the carbon tax to include all reportable facilities.

At this point in time, we will retain the threshold of 25,000 tonnes of emissions. This covers about 80% of our emissions and is already one of the highest in the world. Coupled with our existing taxes on transport fuels, we are achieving around 90% coverage. Lowering the threshold would impose significant additional regulatory burden and costs on companies, without any meaningful increase in coverage.

Assoc Prof Jamus Lim asked how we can catalyse the purchase of high-quality carbon credits.

Providing companies with the flexibility to surrender high-quality international carbon credits to offset up to 5% of their taxable emissions will help to create local demand for high-quality carbon credits and catalyse the development of a carbon services hub in Singapore. It will also cushion the impact for companies that are able to source for cost-effective and credible carbon credits.

We will have clear environmental integrity criteria to ensure that the carbon credits surrendered by businesses to offset their emissions are aligned with international carbon market rules finalised at COP26 and reflect an actual reduction in global emissions.

Mr Chairman, the carbon tax is but one part of our comprehensive package of measures to move our nation decisively towards a low-carbon future. Last year, we launched the Green Plan, a whole-of-nation movement to advance our national agenda on sustainable development. All the Green Plan Ministries have gathered again during the COS this year to explain how the various initiatives under the Green Plan will be enhanced and implemented.

Mr Chairman, all of us have a part to play. We can and we should make this decisive move to net-zero. We must advance on this sustainability journey together as a nation and we will require the participation and support of all Singaporeans to do so.

There will be costs to bear and trade-offs to be made. But this move will reposition Singapore and bring significant benefits for generations of Singaporeans to come. By moving decisively now, we are charting the path to a cleaner, greener Singapore for our future generations – with a sustainable environment and lifestyles, a forward-looking economy with new green jobs, and a brighter future at the forefront of a low-carbon world. [Applause.]

The Chairman: Minister Grace Fu.

The Minister for Sustainability and the Environment (Ms Grace Fu Hai Yien): One year ago, we launched the Singapore Green Plan 2030 to catalyse a nationwide sustainability movement to move towards a greener future. Since then, the international momentum for climate action has increased.

Senior Minister Teo Chee Hean spoke about the greater urgency and resolve internationally to take decisive action and why Singapore will raise our climate ambitions to achieve net-zero emissions by or around mid-century. He explained how carbon pricing will be pivotal in spurring Singapore's green transition.

Singapore must catch and ride the green wave to thrive in a low-carbon future. This is key to our continued relevance as an international hub for transport, business and finance.

The sustainability movement in Singapore is growing and inspiring action across all segments of society. Ms Poh Li San and Ms Rachel Ong will be heartened to hear that we have made progress in many areas under the Green Plan, including the following. Two consortia have been awarded tenders to install more than 600 EV chargers in carparks across Singapore. This year, we will begin trialling the import of electricity from Malaysia and Laos and we are seeking proposals to import low-carbon energy from beyond our shores.

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GreenGov.SG was launched to steer the public sector towards ambitious sustainability targets. Organisations, such as Sentosa Development Corporation, Nanyang Technological University and Khoo Teck Puat Hospital, have drawn up their own sustainability plans.

We have been engaging our partners from the people, private and public, or 3P sectors, to make the Green Plan a reality, as raised by Ms Janet Ang.

Green Plan Ministries have engaged more than 25,000 stakeholders over the past year, including corporates, youths, NGOs and the community. They have participated in initiatives, such as the OneMillionTrees movement, Green Plan Conversations and the Youth Action Challenge.

The private sector is adopting sustainability practices and committing resources to secure an early foothold in the green transition.

The Maritime and Aviation sectors are trialling the use of cleaner and lower-carbon fuels. SIA and Scoot will begin a pilot to use blended sustainable aviation fuel at Changi Airport.

To accelerate the decarbonisation of the Built Environment sector, more than 80 organisations have signed an embodied carbon pledge launched by the Singapore Green Building Council. Global firms, such as McKinsey, Bain and Company, and PwC, have established sustainability hubs and centres in Singapore, to serve the region and beyond.

Civil society, community organisations and youths are galvanising a social movement on sustainability, empowering action and advocacy from the ground.

At last year’s Climate Action Week, over 60 partners from the 3P sectors organised more than 130 wide-ranging activities, a record for the event.

To mark Youth Day at the 26th United Nations Climate Change Conference, a group of Singaporeans and youth-led environmental and climate organisations, such as Ho Xiang Tian and FiTree, released a statement with wide-ranging recommendations on tackling climate change.

I am inspired by their passion to drive change and encourage our youths to continue to advocate and act for change.

As we step towards a greener and low-carbon future, we will need to build a new social compact to prepare for changes in the way we live, work and play. As citizens, we must reflect on the changes we are willing to make to our lifestyles. Across the economy, we must move boldly to transform and capture the opportunities from the green transition. As a nation, we must thoroughly debate the trade-offs and come to a consensus on the right balance to strike.

Today, my colleagues and I will give an update on how the Government is preparing for the transition to a low-carbon future, anchored around the Green Plan. Minister Gan Kim Yong will elaborate on our efforts to grow our green economy and decarbonise our energy sector. Minister S Iswaran will speak about measures to further reduce carbon emissions in the transport sector. Minister Desmond Lee will share about our progress in greening our built environment and in transforming Singapore into a City in Nature. Minister Chan Chun Sing will give an update on how we are nurturing the next generation to be stewards in environmental sustainability and how our Institutes of Higher Learning (IHLs) are driving skills training, research and innovation in sustainability.

Let me share about my Ministry’s efforts to empower, invest in and partner companies, people and communities to move towards a low-carbon future.

First, empowering businesses, workers and households. Improving energy efficiency is one of the primary ways that businesses can lower their carbon emission. We will provide targeted support to help every sector decarbonise. BCA will support the built environment sector; EMA the power generation sector; and EDB and NEA, the manufacturing sector.

Prof Koh Lian Pin asked about the Energy Efficiency Fund, which is part of an enhanced package of support launched in January 2019 to help industries become more energy efficient and lower their carbon tax. Since then, we have committed over $75 million to support businesses to implement energy efficiency improvement and carbon abatement projects.

SMEs deserve our attention. They are at the heart of our economy, supplying products and services to many sectors and employing a significant proportion of our workforce. While many of them are nimble, dynamic and creative, they often lack resources to invest in energy-efficient technologies or make changes to their business.

Earlier in the Budget debate, Mr Don Wee and Ms Denise Phua called for more support for SMEs. Over the years, we have built on our support for SMEs to achieve greater energy efficiency. ESG launched the $180 million Enterprise Sustainability Programme to support Singapore companies in their sustainability journeys. Last year, NEA and ESG supported the Carbon Pricing Leadership Coalition Singapore’s LowCarbonSG initiative to help companies build capabilities in measuring, monitoring and reducing their carbon emissions.

NEA and the Singapore Institute of Technology (SIT) set up an Energy Efficiency Technology Centre (EETC) in 2020. It provides SMEs with low-cost energy assessments to help them identify opportunities to improve energy efficiency. The Centre also develops the workforce by training students and practitioners in industrial energy efficiency. NEA is working with SIT to strengthen the Centre’s capabilities in the next phase. Enhancements will include setting up a training-and-simulation centre to enable learners to practise their craft in a realistic, yet safe environment. With the enhancements, the Centre will be able to assume a more prominent role in Singapore’s transition to a low-carbon economy. More details will be announced when ready.

NEA’s Energy Efficiency Fund (E2F) helps SMEs in the manufacturing sector to defray the cost of adopting energy-efficient technologies. Kawarin Enterprise Pte Ltd, a local steel manufacturing company, has benefited from the Fund. By upgrading their old air compressors to more energy-efficient ones, they enjoyed annual cost savings of more than $30,000 and abated about 48 tonnes of carbon annually.

To help the manufacturing sector mitigate the impact of higher carbon tax, I am happy to announce that from 1 April 2022, we will raise the Energy Efficiency Fund’s maximum grant support for investing in energy-efficient technologies, from 50% to 70% of qualifying costs. This will help companies invest in energy-efficient equipment, such as lighting, air-conditioning, boilers and air compressors. We will simplify the grant application and disbursement process. I urge companies to take advantage of the higher support level early.

The green transition will present new opportunities for our economy and workforce. We hope to anchor emerging green industries in Singapore to create good jobs. We are growing a new industry in agri-tech. Minister of State Desmond Tan has shared this in his speech.

Mature industries, such as the environmental services industry, are poised for transformation, catalysing higher demand for green skills. We will support our workers to develop these skills.

Mr Eu Leng Pheng, who began his career in the chemical and marine industry, took a leap of faith and entered the waste management industry in 2017, as a Facilities Manager in LHT Holdings to support wood waste recycling operations. To make the transition, he took part in a professional course offered by the Waste Management and Recycling Association of Singapore. His vast experience in troubleshooting electrical components and circuit boards from his previous work experience allowed him to quickly render professional support to other engineers. He has also provided in-house training to the mechanics in his company, furthering their knowledge.

We are also encouraging households to embrace sustainability. NEA and PUB launched the Climate-Friendly Households Programme in 2020 to help 1-room to 3-room HDB households reduce energy and water consumption. Eligible households can redeem $225 worth of e-vouchers to offset costs for energy-efficient refrigerators, LED lights and water-efficient shower fittings. The vouchers are valid till 31 December 2023. I urge eligible households to use these vouchers when your appliances are due for replacement. Making the switch can help households save on utility bills.

Second, we will continue to invest in science and technology to unlock possibilities for a low-carbon future. Our water story is a good example of the critical role R&D plays in Singapore’s development. In our decades of patient and persistent investments, over the years, we have created two of our national taps, NEWater and desalinated water, and raised Singapore’s profile as a leading global hydrohub. Our research objective now is to bring down the energy requirement through science and technology.

In 2023, a Desalination Integrated Validation Plant will be commissioned to trial promising technologies to reduce the energy consumption of desalination to less than two kilowatt hours per cubic metre (kWh/m³) of water. This will pave the way for the technologies to be implemented in full-scale desalination plants.

The plant is just one of the many projects that are supported under our national Research, Innovation and Enterprise (RIE) 2025 plan. As Mr Gan Thiam Poh, Ms Poh Li San and Prof Koh Lian Pin have pointed out, science and technology are important enablers for the Green Plan. Under RIE2025, the Urban Solutions and Sustainability domain will strengthen our capabilities in addressing climate change, advancing energy transition, promoting liveability and transforming our built environment.

I am pleased to announce that the Government has allocated $220 million for R&D in resource circularity and water technologies. Eighty million dollars will be allocated to Closing the Resource Loop, to develop sustainable resource recovery solutions for key waste streams, such as e-waste, plastics and food. It will support the development of useful and safe applications for treated waste residue and low-carbon waste treatment options. This will build on the $45 million Closing the Waste Loop under RIE2020. Under this funding initiative, NEA has funded 15 R&D projects, with seven garnering commercial interest.

Another $87 million will be allocated to the Centre of Excellence Programme to support water and membrane research at the Nanyang Environment and Water Research Institute (NEWRI) and the Separation Technologies Applied Research and Translation Centre.

The remaining budget was allocated to the Competitive Funding for Water Research programme last year.

Our investments will go towards developing high-impact solutions for our national water needs. But beyond that, research and innovation will also be an engine for green growth, spurring private sector R&D spending, job creation and technology spin-offs in the water industry and adjacent sectors.

For example, NEWRI has developed technologies with local and global applications in areas, such as biomimetic membranes for desalination and anchored investments from global companies in Singapore.

Science and technology will also inform our policies and interventions to keep Singapore liveable in the face of climate change. As Mr Leon Perera pointed out, rising urban temperatures is a major concern for our compact and dense city. The Government already incorporates urban planning measures to keep neighbourhoods cool. For example, weaving nature more intensively into our built environment, which Minister Desmond Lee will touch on later.

The Government is also piloting the use of cool paints in 130 HDB blocks in Tampines, under the Green Towns Programme.

We are also working with MOH, MOM and the Workplace Safety and Health Council, to ensure that guidelines on managing heat stress at workplaces are regularly updated.

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Third, partner. We need to involve the whole-of-society in the sustainability movement and develop a shared ownership of our environment.

Ms Nadia Ahmad Samdin and Ms Hany Soh asked for an update on the SG Eco Fund.

We have seen great interest since its launch in November 2020. As we wrap up our second grant call, I am happy to share that we will award $2.9 million to 68 projects. This includes 42 smaller projects under the new Sprout category, which has a simpler application process. In total, 105 individuals and organisations have been awarded $6.6 million in funding thus far.

Some of the recipients in the second grant call are: Earth School Singapore, which has launched a new experiential education programme for Primary school students; U Farm, a social enterprise farm, which will train and employ persons with disabilities and host environmental programmes for the public; Mr Neo Zhi Xuan and his team, who will develop a web application to educate the public on where and how to recycle different household items.

Our applicants have diverse interests and goals, reflecting the reach of the grant. We will work with our grant recipients to maximise the impact of their projects and co-create relevant environmental and community engagement targets. SG Eco Fund will also explore new partnerships to rally more people to contribute to the Green Plan.

Our local communities are also responding to the call to action. Mr Don Wee asked about the progress of Eco Towns. In Tampines, Semula, a social enterprise, will be conducting plastic collection drives at F&B outlets and shopping malls and involving the community to process the collected plastics into art pieces. In Nee Soon South, the grassroots organisation is setting up a Black Soldier Flies composting hub. In Chua Chu Kang and Hong Kah North, grassroots leaders have organised hackathons with residents to co-develop an Eco Town plan for the district.

We intend to provide more support, including capacity building workshops, to help more communities in Singapore plan and develop sustainability initiatives in their towns. This will complement HDB's Green Towns Programme to enhance the sustainability of estates.

We will continue to consult and engage the public on environment and climate issues, including our net-zero ambition, as Senior Minister Teo Chee Hean has explained.

Prof Koh Lian Pin suggested that sufficient time must be set aside for the public to learn about the issues and share their views. I agree fully.

Under the SG Together movement, we created many opportunities for Singaporeans to participate and contribute actively to sustainability. Depending on the issue at hand, different approaches and modalities are adopted to engage stakeholders and we endeavour to share the insights gathered from these consultations with the public. Across the Public Service, we are also growing capabilities to engage well and consistently, through shared frameworks, case studies and ongoing training.

For instance, the disposable carrier bag charge was developed after more than one year of extensive consultations and engagements with the industry and the public, including a Citizens' Workgroup. MSE and NEA released our response to the recommendations by the Citizens' Workgroup in 2021.

For the Lim Chu Kang Masterplan, we brought stakeholders together over six months to discuss how the Lim Chu Kang area could be redeveloped to become our agri-food production hub of the future. The full report covering the whole engagement series has just been finalised and will be published soon.

I thank the participants for their valuable contributions.

These consultations and engagements enable participants and stakeholders, including the Government, to hear and understand diverse views. Participants go away with a better appreciation of different perspectives and the rationale for policies, and the Government goes away with better-informed and considered decisions. There is a sense of unity and shared responsibility in shaping the collective future of our society.

And this is what the Green Plan is about – it is a movement, a collective movement towards a shared vision. It is a living plan that evolves as we engage and participate fully as a nation and as new technologies and solutions present us with new options.

It is my hope that the Green Plan will spark new possibilities that were once thought to be unattainable. That it will pave the way for a greener, brighter future. That when it is time to hand the torch over to the next generation, we will be remembered as faithful stewards of our island nation, who made the right and difficult choices. In good time.

This push towards a low-carbon future heralds a new phase in Singapore's sustainable development. Just as how we have transformed Singapore into a modern metropolis, our future will be even brighter as we work together to build Singapore into a city of green possibilities. [Applause.]

The Chairman: Minister Gan Kim Yong.

The Minister for Trade and Industry (Mr Gan Kim Yong): Mr Chairman, I am encouraged by Members' commitment to sustainability. Many have spoken about it and asked how we can do more to further our sustainability and climate ambition. Members also recognise that while Singapore must take bold steps to address climate change, we must remain pragmatic, managing the trade-offs for supporting our enterprises and helping our workers in the green transition.

A few days ago, I outlined in this House our economic strategies for Singapore. Sustainability must underpin these economic strategies.

First, we need to press on with our efforts to help our industries and enterprises decarbonise. Second, we need to help our enterprises and workforce harness sustainability as a competitive advantage, invest in innovation and seize new growth opportunities in the green economy. And third, we need to expand Singapore's global connection to capture cross-border opportunities.

Singapore's transition to a low-carbon economy is critical not only to ensure that we are aligned with the global efforts on sustainable development, but also to leverage new opportunities in the emerging green economy.

Today, I will focus on Government's Green Economy Strategy and I will cover four key areas.

First, decarbonise our industries, including the energy sector, which is a major emitter. Second, drive new areas of growth in the green economy. Third, invest in the development of new low-carbon solutions. And fourth, deepen our workforce capabilities.

First, let me talk about decarbonising our industries and the energy sector.

Many companies have already embarked on the sustainability journey, for they know that not doing so would risk them losing relevance and market share. We will continue to support industries and enterprises in their transition efforts.

Last November, we released the Sustainable Jurong Island report which outlines our plan to transform Jurong Island into a Sustainable Energy and Chemicals Park. The Park will operate sustainably and produce sustainable products for exports. By 2030, we target for the energy and chemicals (E&C) sector to increase its output of sustainable products by 1.5 times from 2019 levels and achieve at least two million tonnes of carbon abatement per annum from low-carbon solutions.

For example, Shell Singapore has announced plans to halve its operational emissions by 2030 from 2016 levels.

Another example is specialty materials manufacturer, Arkema, which will be setting up a new bio-factory on Jurong Island to produce high-performance polymers made from castor beans. The new plant will enable Arkema to increase its polymer production capacity by 50% to meet the rising global demand for sustainable, high-performance materials.

Decarbonising Singapore's energy sector is key in greening Singapore's economy. The energy sector powers our industries and households and is a major emitter, contributing around 40% of Singapore's direct emissions. The demand for energy will grow as we digitalise our economy and electrify our transport and various processes.

However, the energy transition is especially challenging for Singapore. Many of the renewable energy options adopted by other countries are not available to us. We have little wind, hydro or tidal power. Solar is our most viable form of renewable energy, but we have heavy cloud cover and limited land available to expand our solar energy deployment. Despite these limitations and complexities, we must continue to forge ahead to transform the energy sector and reduce its carbon footprint.

First, we will enhance the energy efficiency of power generation plants. Last year, we launched the second Genco Energy Efficiency (Genco EE) Grant Call to support generation companies in improving the efficiency of their existing power plants. EMA is evaluating the proposals and will announce the successful applicants later this year.

We also amended the Electricity Act to empower EMA to require electricity generation licensees to meet greenhouse gas emissions standards. EMA will consult the industry on the specific standards later this year.

Mr Saktiandi Supaat and Mr Shawn Huang asked for an update on our alternative energy deployment plans. They will be pleased to know that we are on track to achieving our solar deployment target of at least two gigawatt-peak (GWp) by 2030, which is equivalent to powering 350,000 households annually. Since 2015, our solar installed capacity has increased by over nine times to around 560 megawatt-peak (MWp) in the third quarter of 2021. We are finding ways to further accelerate solar deployment.

Our public sector agencies are taking the lead in solar deployment. HDB, for example, recently launched the seventh SolarNova tender, to aggregate demand across HDB blocks and Government sites. Since 2020, JTC has also put in place a mandatory solar deployment scheme for its lessees. And to-date, over 224 MWp of solar has been deployed across JTC's industrial estates or around 40% of our total solar deployment.

We are also exploring how we can overcome our land constraints. For example, PSA has installed vertical solar panels on its external walls of the PSA Tuas Port Maintenance Base Admin Building as a trial. The Government is also exploring the use of vertical solar panels on other surfaces.

To further expand the potential of solar deployment in Singapore, EMA is looking at ways to integrate energy storage systems into the grid, to overcome the intermittency of solar energy and manage the stability and resilience of our energy grid.

But these efforts alone are not sufficient. Increasing the energy efficiency of our natural gas power plants can, at best, reduce carbon emissions by about 10%. Even if we maximise all available space in Singapore for solar deployment and account for efficiency improvements, we would still be unable to generate enough power to keep the lights on with solar energy alone. Meaningful abatement can only be achieved through tapping on renewable energy beyond our shores and by developing the use of other low-carbon alternatives in the longer term.

In October last year, I announced that MTI and EMA plan to import up to four gigawatt (GW) of electricity by 2035. This will constitute around 30% or one-third of Singapore's electricity supply by then. In the interim, we will conduct small-scale 100 megawatt (MW) trials which will help us learn, build confidence and pave the way for our larger-scale sustainable electricity import projects.

The energy transition will require trade-offs and we will need to accept changes to the way we live and work. In particular, the transition to more carbon-efficient generation and low-carbon technologies, accelerating the deployment of renewable energy and importing electricity, may not mean cheaper electricity, as Mr Shawn Huang pointed out.

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We will need to invest in infrastructure and technology which will be costly and are likely to lead to higher electricity costs. This is an inevitable but necessary trade-off to build a better and greener world. The Government is pacing and managing the transition to ensure that electricity remains affordable and will provide assistance to vulnerable groups when necessary.

We will continue to work closely with our industry partners and stakeholders to innovate and explore new solutions.

Even as we push on with decarbonisation, there are exciting new economic opportunities, too. They are different sides of the same coin on sustainability.

Green financing, for example, will grow as companies look to financing instruments to support their sustainable investments.

Another opportunity is in the carbon services and carbon credits market. Firms and even countries will want to trade in carbon credits to offset their emissions and meet their climate goals.

Mr Leon Perera suggested that we need to scrutinise and properly account for the carbon credits and, indeed, so. This also means that we will need monitoring, reporting and verification (MRV) services. These growth areas will lead to good jobs in the professional services.

Mr Saktiandi Supaat asked how the Government will enable the development of Singapore's carbon markets.

Today, there are more than 70 organisations in Singapore providing carbon services, which is the highest concentration of service providers in Southeast Asia. We will continue to work with the private sector, as well as with other countries, to develop carbon credit projects which have high environmental integrity and quality, as Mr Leon Perera talked about. These credits can be traded via trusted platforms in Singapore or can be used by corporates or the Government to meet climate targets.

For example, we have partnered local ecosystem players, such as Climate Impact X (CIX) and AirCarbon Exchange (ACX), to establish marketplaces for companies to access high-quality carbon credits. This entire value chain and ecosystem will require new skills. MOM, MOE, Workforce Singapore (WSG) and SkillsFuture Singapore (SSG) are working together to equip our workers with these new skills and for these new job opportunities.

Another area that presents opportunities for Singapore is sustainable tourism.

Eventually, global tourism will recover and become vibrant again as we emerge from the COVID-19 pandemic. Tourists are increasingly demanding sustainable travel options, such as eco-friendly hotels and attractions. This is why we have been taking steps to work with the tourism industry to move towards more sustainable operations, create sustainable products and experiences for our visitors to establish Singapore as a sustainable urban destination. This includes initiatives, such as the launch of the hotel sustainability roadmap later this month. This is a key milestone that will spur hotels to adopt sustainable operations.

Last year, Sentosa received the Top 100 Destination Sustainability Stories Award. The Sentosa Development Corporation (SDC) also launched the Sentosa Carbon Neutral Network, Singapore's first business alliance committed to carbon neutrality by 2030. The network aims to help businesses develop sustainability solutions through the sharing of resources and expertise while also leveraging economies of scale and providing a common network to introduce larger-scale precinct level solutions.

I agree with Ms Jessica Tan, Ms Mariam Jaafar and Ms Foo Mee Har that businesses which start early on the sustainability journey can gain a competitive advantage over those which are slow to do so.

This is why, last year, the Government launched the Enterprise Sustainability Programme (ESP) to enable local enterprises to uplift their capabilities and capture opportunities in sustainability.

The ESP provides support at three levels. First, to develop sustainability capabilities in enterprises through training and access to relevant tools and resources. Second, to strengthen sector-specific initiatives through partnerships with Trade Associations and Chambers (TACs) and corporates. And third, to foster a vibrant and conducive sustainability ecosystem by working with service providers and enablers in training, certification and provision of green financing.

ESG has announced the roll out of the first series of ESP-Sustainability Courses for businesses which were developed in partnership with the Global Compact Network Singapore (GCNS), PwC Singapore and the Singapore Environment Council (SEC).

Businesses are also making good use of the Enterprise Financing Scheme (EFS) - Green, which provides enterprises better access to green financing.

For example, Durapower Group was extended a green trade loan of $6 million by HSBC Singapore. The loan will enable the Singapore tech company to accelerate the development and distribution of its high-tech energy storage solutions using lithium-ion batteries for the Tuas Port's automated guided vehicle fleet. I encourage more companies to tap on the ESP and EFS-Green.

Mr Chairman, as Ms Foo Mee Har and Ms Jessica Tan pointed out, innovation and the development of low-carbon solutions are key to sharpening Singapore's competitive advantage in the green economy and facilitating the energy transition.

Some of these solutions, such as low-carbon hydrogen and carbon capture, utilisation and storage, or CCUS, have the potential to be a gamechanger, especially for the hard-to-abate sectors, such as energy and chemicals. However, the technology will take time to mature and become more commercially viable. The Government is studying how we can catalyse the development.

Let me elaborate on hydrogen, which has, in recent years, emerged as a promising energy carrier in the global search for low-carbon fuels.

Many of the technologies required to enable the production, transportation, storage and use of hydrogen at scale are still nascent and relatively costly today. Currently, there are also no commercially available utility-scale combined cycle gas turbines (CCGTs) that can use 100% hydrogen. Without significant retrofitting, only small amounts of hydrogen up to 5% by volume can be deployed.

Another challenge is in transporting hydrogen in larger volumes over long distances as the technology to transport liquified hydrogen is not yet available. Alternative carrier forms of hydrogen, such as ammonia and liquid organic hydride carriers, are more easily transported but come with their own challenges, such as the need to extract the hydrogen from the carriers at the destination.

We expect the costs of low-carbon hydrogen technologies to fall over time with technological advancements and greater economies of scale. Low-carbon hydrogen will also become increasingly more accessible with the development of global supply chains and as technological developments make its transportation and use easier.

The Government is, therefore, investing resources to understand and monitor the potential for hydrogen deployment in Singapore and exploring potential solutions.

Last year, we awarded $55 million for R&D projects under the Low-Carbon Energy Research Funding Initiative to pursue R&D in low-carbon technologies, such as hydrogen.

One of the projects supported involves NTU working with a consortium of companies comprising local enterprises, such as PSA and Sembcorp Industries, and international partners like Chiyoda Corporation and Mitsubishi Corporation. The consortium will seek to develop new technologies for the extraction of hydrogen from liquid organic hydrogen carriers.

Another project involves NUS and NTU researchers collaborating with the industry to develop new catalysts to liberate hydrogen from ammonia in a more energy-efficient way. These have the potential to allow for more efficient and economical transport of hydrogen, which can, in turn, contribute to the expansion of global hydrogen supply chains and improve the viability of hydrogen as an alternative fuel.

Another promising low-carbon technology is CCUS, which could be deployed to capture greenhouse gas emissions and keep them out of the atmosphere. Efforts are underway to make CCUS pathways a reality and we will put in place a robust verification system to ensure proper accounting of the carbon captured, as Mr Leon Perera mentioned.

In November last year, A*STAR's Institute of Chemical Engineering and Sciences (ICES) worked with EDB and JTC to partner 13 energy and chemicals (E&C) stakeholders to study the development of a Carbon Capture and Utilisation Translational Testbed (CCUTT) to be housed on Jurong Island. CCUTT will facilitate the rapid evaluation and test-bedding of emerging carbon capture and utilisation technologies to accelerate industry adoption. This will complement our efforts to develop Jurong Island into a sustainable E&C park.

To enhance the synergy of our R&D efforts in low-carbon technologies and solutions, A*STAR will reorganise key R&D capabilities across its institutes into a new Institute of Sustainability for Chemicals, Energy and Environment, or ISCE².

ISCE² will advance research areas, such as carbon capture and utilisation, low-carbon hydrogen, carbon life-cycle accounting and synthetic biology, to pave the way for alternative green materials, products and processes to support Singapore's sustainability agenda. ISCE² will continue to partner academia, public agencies and industry to contribute to Singapore's climate change goals.

We look forward to reaping the fruits of these industry and international partnerships in time to come.

Sir, as we transform our industries, we must also equip our people to seize upcoming opportunities in the transition to the green economy and low-carbon power sector, as Ms Mariam Jaafar and Prof Koh Lian Pin have highlighted.

I shared about the reskilling and upskilling programmes offered by agencies in January. These include the Career Conversion Programme (CCP) for Clean and Renewable Energy Professionals by WSG and MAS' setting up of centres of excellence for training and research in green financing. I am pleased to hear of employers and workers coming forward to make use of these skills programmes.

One such example is Mr Wang Yi Tian, a design engineer at SembCorp Marine (SCM). Mr Wang and seven of his colleagues enrolled in the CCP for Clean and Renewable Energy Professionals to undergo training in new offshore wind technologies. They will be future-skilled to take on job roles, such as supporting the construction and commissioning of overseas windfarms and windfarm substations. With these new skills, Mr Wang and his colleagues will be part of the team to expand SembCorp Marine's capabilities in renewable energy beyond our shores.

We will continue to roll out new programmes to keep pace with the evolving needs of the transition to a green economy. This will enable our workers to benefit from the emerging green economy and low-carbon power sector.

Mr Chairman, over the past five decades, Singapore's economy has built up significant strengths and competitive advantages. We have adapted to the various challenges and constantly reinvented ourselves to stay relevant in the regional and global economy. Our transformation to a low-carbon economy is yet another chapter in the Singapore story.

It will be a challenging journey but an exciting one. The Government will partner our industries, businesses and workers as we undertake this journey. Together, we can navigate the transition, explore new ideas and forge new frontiers as we create a greener future for Singapore and for the world. [Applause.]

The Chairman: Minister S Iswaran.

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The Minister for Transport (Mr S Iswaran): Mr Chairman, the Singapore Green Plan articulates our national climate ambitions, as well as our commitment to climate action and achieving net-zero emissions.

Sir, climate change is a challenge of the global commons. The cost of solutions will be incurred by individuals, enterprises and economies, while the benefits will take time and accrue to the global community. But we must act now, individually and collectively, by making responsible choices and trade-offs to avert a tragedy of the commons and prevent grave harm to our environment.

Our land transport system is an important part of this endeavour. It is our third largest source of emissions, accounting for 15% of national emissions today. Over the decades, we have taken significant steps to build an efficient and sustainable transport system. We have, progressively, introduced policies on car ownership and usage, invested heavily in public transport and active mobility and promoted the transition to cleaner-energy vehicles.

As a result of these moves and other changes, I am happy to share with Members that our land transport carbon emissions peaked at 7.7 million tonnes in 2016. While this is a significant inflection, we must do more to work towards net-zero emissions, as stated by Senior Minister Teo Chee Hean.

Hence, aligned with our national effort, we aim to reduce land transport emissions by 80% by or around mid-century, from the peak in 2016. This is a reduction in absolute emissions. It is an ambitious goal that will require policy moves, new technologies and behavioural shifts across our land transport system. Along with the decarbonisation of the power grid, electrification of vehicles is a key initiative that will have a material impact and I would like to elaborate on our moves in that regard.

Globally, EV technology continues to advance and sales of electric cars have gained momentum. In Singapore, new electric car registrations increased 18-fold, from 100 in 2020 to 1,800 in 2021, accounting for almost 4% of all new car registrations. This is a promising indicator of the impact of our measures, such as the EV Early Adoption Incentive (EEAI) for cars, which has been highlighted by Mr Saktiandi Supaat, Mr Gan Thiam Poh and Mr Louis Chua. We will monitor developments and assess the need for similar measures in other vehicle segments, like electric motorcycles.

To sustain the momentum of our EV transition, we will step up our efforts in three key areas.

First, charging infrastructure. Several Members have highlighted the need for charging infrastructure to keep pace with, if not be ahead of, EV adoption. Range anxiety is a commonly cited impediment. In practice, the average driver in Singapore may need to fully charge her electric car only once every five to seven days, given that most have a range of at least 300 kilometres. Nevertheless, this concern over nascent technology is understandable. To take anxiety out of range, chargers must be widely available.

Last year, MOT shared plans to deploy 60,000 charging points across public and private carparks by 2030. Since then, LTA has undertaken a major survey of the switchrooms and substations serving residential carparks across the island to assess the additional electrical capacity needed to support EV charging.

This evaluation has given us the confidence to accelerate the implementation of our plans. We will make every HDB town EV-ready by 2025. To achieve this, we will install charging points in nearly 2,000 HDB carparks over the next three to four years. They will mostly provide low-powered, overnight charging, which would meet the needs of car owners and minimise the load on the electrical grid. There will be at least three charging points per carpark and more where there is demand and adequate electrical capacity. LTA will launch the large-scale tender for charging points at HDB carparks in the first half of this year.

We have also made progress in the deployment of chargers at other premises. Mr Ang Wei Neng’s question was regarding the pattern of ownership. More than 80% of electric car users live in private residences today, many in condominiums and private apartments. So, to incentivise non-landed private residences to install chargers in their carparks, we introduced the EV Common Charger Grant last July. So far, 12 developments have used this grant and at least 20 others are in the pipeline. Their applications are being processed and I would like to encourage more Management Corporation Strata Titles (MCSTs) to benefit from this scheme.

Our second move is to upgrade the supporting electrical infrastructure. Consumer switch-rooms and substations will have to be expanded to support increasing use of the residential charging network. After industry consultation and feedback, we have decided that the Government will undertake this long-term infrastructure programme. The National EV Centre at LTA will take the lead, working with other Government agencies like EMA and HDB. Upgrades will commence over the next few years and continue well into the 2030s.

Ms Yeo Wan Ling asked about financing. LTA will be issuing green bonds to fund these infrastructure upgrades. The bond repayment obligations will be met through a tariff on EV charging operators and users, which will be phased in at a later stage.

The third thrust of our EV masterplan is to implement policies and regulations that support adoption and ensure safety. I agree with Prof Koh Lian Pin that robust regulations and standards are necessary to ensure a reliable and safe EV charging ecosystem. To that end, LTA has worked closely with the industry on revisions to Technical Reference 25, or TR25, which is our national EV charging standard.

The revised TR25 will preserve public safety while easing compliance and maintenance obligations for owners of EV chargers. It will also allow for new technologies, such as battery-swapping, for electric motorcycles and very high-powered charging of up to 500 kilowatts.

Mr Saktiandi Supaat and Mr Gan Thiam Poh have asked about our approach to such technologies. As they are still relatively nascent, we will focus on safety regulations, while monitoring industry and technology developments to assess their applicability to our overall charging network.

To lay the foundation for a new regulatory framework, we will introduce legislation to regulate EV charging. This will cover the approval and registration of EV chargers and the licensing of EV charging operators. It will also mandate the provision of charging infrastructure in new buildings and major redevelopments. There will be a public consultation on the proposed legislation later this year.

We have also reviewed our vehicle policies to ensure they are relevant for an EV future. With the changes over the last two years, the road tax for mass market electric cars is now comparable to that of equivalent internal combustion engine (ICE) cars.

Several Members, in this debate and before, have suggested using pricing and other incentives to increase the attractiveness of EVs vis-à-vis ICE cars. We earlier introduced the EEAI to reduce the gap in upfront costs. However, the cost differential remains for certain mass market EVs because they fall within Category B COEs, along with bigger ICE cars. One reason for this is the Maximum Power Output (MPO) criterion.

We introduced the criterion of 97 kilowatts in 2013, in addition to an engine capacity of 1,600 cc or less, for Category A cars. That was to address the market trend then, when many luxury petrol cars with smaller but turbo-charged engines could draw on Category A COEs. Introducing the 97-kilowatt MPO threshold shifted these turbo-charged luxury cars into Category B. However, mass-market electric cars in international markets tend to have a MPO of 110 kilowatts or lower. Locally, more mass-market EV models with an MPO above 97 kilowatts have been introduced in the last year.

So, Mr Saktiandi Supaat would be pleased that MOT has reviewed the MPO threshold between Category A and Category B COEs for electric cars. We will be increasing the Category A MPO threshold for electric cars from 97 kilowatts to 110 kilowatts. Based on the EV models approved by LTA for use so far, this move will double the number of models that fall within Category A from 10 to 20, including models like the Hyundai Ioniq that Mr Louis Chua mentioned in his speech. This change will apply to electric cars registered using COEs obtained from the next COE quarter in May 2022.

Mr Chairman, the EV transition also applies to other vehicle segments. Prof Koh Lian Pin and Mr Gan Thiam Poh asked about the plans for the public transport and point-to-point (P2P) fleets. The P2P sector is key to emissions reduction as taxis and private hire cars clock a much higher daily mileage, compared to the average private vehicles. Our taxi operators have already announced some plans. ComfortDelgro will roll out up to 400 electric taxis, or e-taxis, in 2022, while Strides has committed to a fully electric fleet by 2026.

To support these initiatives and higher ambitions, the Government will extend the statutory lifespan of e-taxis to 10 years, up from the current eight years. As EV batteries for e-taxis may need to be replaced around the five-year mark, this extension will enable taxi operators to optimise their investments and price e-taxi rentals competitively. In turn, our taxi operators have committed that at least half of our taxis will be electric by 2030. This is a significant move, given our total taxi fleet of around 15,000 today. Among private hire cars, 50% of GrabRentals fleet will also go electric by 2030. LTA will continue working closely with private hire car operators to increase EV adoption.

We will make a similar concerted push for our public bus fleet. We aim for half of our public buses to be electric by 2030. This means an almost 50-fold increase from the 60 electric buses today, to about 3,000 by 2030. To achieve this, bus buys from now till 2030 will primarily be electric. For a start, LTA will replace over 400 diesel buses with electric buses by 2025.

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To further green our public transport infrastructure, LTA will call a tender later this month to deploy more solar panels at locations like rail and bus depots, the upcoming Integrated Train Testing Centre, covered linkways and pedestrian overhead bridges. This will reduce both emissions and energy costs.

Goods vehicles and private buses are also key to our effort as they contribute the bulk of our remaining emissions.

As Mr Dennis Tan noted, last year, MSE implemented the Commercial Vehicle Emissions Scheme and enhanced the Early Turnover Scheme to encourage the adoption of cleaner-energy light goods vehicles. However, for the heavier goods vehicles, there are fewer viable cleaner-energy solutions currently available. We will work closely with industry partners to track technology advancements in this space with a view towards early adoption of viable solutions for heavier goods vehicles.

Mr Chairman, in summary, we are taking decisive action to reduce land transport emissions by 80% by or around mid-century. We will make every HDB town EV-ready by 2025. We will support EV adoption with adjustments to our COE Category A MPO threshold, upgraded electrical infrastructure and a robust regulatory framework for EV charging and ensure half our public buses and taxi fleets are electric by 2030.

But beyond these efforts, the success of this green endeavour, ultimately, rests with each one of us and the commuting decisions we make every day.

Based on LTA’s estimates, compared to driving an ICE car, switching to an electric car halves our carbon footprint. Taking an electric bus reduces our carbon footprint by 70%. Taking the MRT reduces our carbon footprint by close to 90%. And if we walk or cycle, the carbon footprint is practically zero. So, we can make a difference with our choices.

At the MOT COS debate, we will share more about our plans to make all these options more accessible by expanding the rail network, repurposing our roads and building more cycling paths.

Our informed individual choices will have an indelible and enduring impact on our carbon footprint, environment and future. Together, we can make the vision of the Singapore Green Plan a reality. [Applause.]

The Chairman: Minister Desmond Lee.

The Minister for National Development (Mr Desmond Lee): Mr Chairman, I will first give an update on our work to make our city more sustainable and how this will support our transition to a low-carbon economy and create opportunities for our firms and workers. Second, I will report on our progress to transform Singapore into a City in Nature. And third, set out how we will strengthen our R&D to find innovative ways to improve our urban sustainability.

Let us start with how we are making our built environment and our city more sustainable.

Our buildings contribute more than 20% of Singapore’s carbon emissions. So, the work to green our buildings is very important. As we do this, we also want to create growth opportunities for our companies and workers in our built environment sector.

Last year, we launched the latest edition of the Singapore Green Building Masterplan (SGBMP). We set three targets: “80-80-80 in 2030”, to push further in greening our buildings. We have moved decisively to meet these targets over the past year. So, let me share some updates on our progress and our plans to support the industry in this green transition, which Members like Miss Cheryl Chan, Mr Xie Yao Quan and Prof Koh Lian Pin have asked about.

Our first target is to green 80% of buildings by Gross Floor Area (GFA) by 2030. To date, we have greened more than 49% of our buildings. So, we are well on our way to meeting our target. But we need to do more to sustain our momentum and push ahead.

Last December, we raised the minimum energy performance requirements that both new buildings, as well as existing buildings undergoing major retrofitting, must now meet. We have also worked with our industry to revise the Green Mark scheme. We have set higher energy efficiency standards and increased our emphasis on other sustainability outcomes, too, such as reducing carbon emissions across a building's lifecycle. This will help ensure that Singapore’s Green Mark remains one of the world's leading green building certifications and the go-to standard in the tropics. So, we have raised both our minimum environmental sustainability requirements, as well as our standards at the higher end, for Green Mark.

In particular, we want to encourage owners of older buildings to retrofit them to be more energy-efficient, because these tend to be less resource- and carbon-intensive than demolishing them and constructing new ones. I will share more at MND's COS.

Our second target is for 80% of new developments to be Super Low Energy (SLE) buildings from 2030. These are buildings that achieve energy savings of over 60%, as compared to 2005 levels, when we started our journey to green our buildings. Over the past year, we have certified close to 7% of new buildings by GFA as SLE buildings. This is a modest but promising start, as we bring SLE developments into the mainstream.

The Government is taking the lead to make more buildings SLE buildings. Under GreenGov.SG, we have raised our energy performance requirements for public sector buildings. All new public sector buildings and existing ones undergoing major retrofitting must now meet Green Mark Platinum SLE standards.

We are encouraging developers to pursue SLE standards, too. In November last year, we started an incentive scheme that will give developers of private projects bonus GFA, if they meet Green Mark Platinum SLE standards and other requirements. We will also require higher environmental standards from developers for the new Government Land Sales (GLS) sites that we launch from the second quarter of this year.

If we want to achieve these ambitious targets, we must ensure that our firms and workers have the capability to design, build and maintain SLE buildings. We have been building up a core of talent to support our sustainability efforts, as Mr Cheng Hsing Yao has mentioned.

As of September last year, we have worked with our partners to train more than 22,000 green professionals. We will work with training providers so that their courses cover the latest developments in sustainability. Through collaborative platforms like the Super Low Energy Building Smart Hub, we will also facilitate the sharing of new energy-efficient technologies. We hope that our firms and our professionals will make good use of these resources to upgrade their skills. We will share more on our plans to attract and upskill talent at MND's COS.

This brings me to our third target, which is to achieve 80% improvement in energy efficiency, compared to 2005 levels, for our best-in-class buildings by 2030.

Currently, we have achieved some 65% to 70% improvement. So, we have some way to go. To help us with this important effort, we have a programme under what we call the Green Buildings Innovation Cluster (GBIC). This supports the research, prototyping and demonstration of our green building technologies and encourages companies to adopt these solutions.

Let me give Members an example. The SMU Connexion building uses a Passive Displacement Cooling system, which makes use of convectional currents to circulate cool air throughout most of the building. This new technology can achieve energy savings of up to 40% over conventional air-conditioning systems. It is one of several technologies that enable the building to achieve Zero Energy standards, which means that its entire energy consumption is offset by renewable energy generated on-site.

To further push the boundaries of energy efficiency, we will enhance funding for GBIC by a further $45 million. Under GBIC 2.0, we want to target key demand drivers, such as building owners and developers, as well as their value chains, to jointly develop innovative solutions. These include energy-efficient cooling technologies, smart building systems and enhanced building ventilation. We will accelerate the commercialisation of these solutions through industry partnerships and help to grow the local ecosystem of firms with green building expertise. This way, our companies can compete better in serving the growing global demand for sustainable urban solutions and take the lead to drive sustainable development across the Asia Pacific, home to some of the fastest-growing economies in the world.

Beyond individual buildings, Members have asked how we will make our HDB towns more sustainable. We will do this by tapping on new technologies and smart infrastructure solutions under our HDB Green Towns Programme. This will complement the various initiatives that MSE is piloting in the Eco Towns.

For example, for new HDB flats, we are using green technologies, such as smart lighting for common areas, as well as rainwater harvesting systems, to reduce energy consumption and the use of potable water.

Ms Hany Soh asked whether we use green construction methods for our HDB Home Improvement Programme (HIP) upgrading works. We require all builders for our HIP projects to come under the Green and Gracious Builders Scheme, which sets standards to mitigate the environmental impact of construction work. HDB also adopts other green construction practices, such as reusing metal hoardings for future projects.

We have also been installing solar panels on top of our existing HDB blocks to power common services, such as lifts and lighting. Mr Abdul Samad asked how we are progressing with these plans. We have done this for more than 2,700 blocks already, more than a quarter of the over 10,000 HDB blocks we have in Singapore today. And we will strive to install solar panels on as many HDB blocks as possible. By 2030, we target to have a solar capacity of 540 MWp, equivalent to powering 135,000 4-room flats.

Beyond this, we are also exploring how to make good use of our limited space to enhance Singapore’s food security. Ms Poh Li San and Mr Don Wee asked how we can support more urban farms on the rooftops of multi-storey carparks (MSCPs). Since 2020, HDB and SFA have launched tenders for 16 sites on MSCPs for food production. Although the expected production volume is not very high or large, it will contribute to our “30 by 30” food production goal. We will be evaluating the outcomes of this programme first before we decide on future plans.

Next, we are piloting some new initiatives in our HDB estates to encourage residents to live more sustainably. For instance, we will introduce e-waste recycling bins in our HDB estates to make recycling more convenient. This will also support our Green Plan efforts to help Singaporeans recycle more and recycle right, as Minister Grace Fu had shared with us earlier.

We are also exploring the use of Light Emitting Surfaces (LES) for signages in our housing estates. LES is a new technology that can potentially reduce about 80% of energy consumption, compared to standard fluorescent block signages.

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We hope that these initiatives will enable our residents to lead more sustainable lifestyles and leave a lower carbon footprint.

To finance the building of green and sustainable homes, HDB has also developed a Green Finance Framework. New HDB projects that seek to achieve BCA's Green Mark Gold^Plus certification or above can now be financed or refinanced with green bonds or loans under this framework. This will support HDB as it seeks to reduce carbon emissions and energy consumption in our projects. HDB's Green Finance Framework will also contribute to our whole-of-Government effort to further develop the green bond market in Singapore.

Let me now update Members on our work to transform Singapore into a City in Nature.

Ms Nadia Ahmad Samdin asked how we balance conservation and development. I will give a fuller update on our approach at MND's Committee of Supply later but let me briefly share some of the progress that we have made.

First, we have restored and enhanced several core habitats throughout the island. These comprise over 12 hectares of forest, marine and coastal habitats in Singapore which are key ecosystems and important homes for native biodiversity. Last year, we expanded the Species Recovery Programme from 94 to 120 species and, by 2030, we will increase these to 160 species. We have seen some early success. Our latest studies have shown that many of our native flora and fauna species have become less threatened over time, such as the Smooth-coated Otter and the Lesser Mousedeer.

Second, beyond our core habitats, we have greened other parts of our city more intensively. We have established more nature parks, especially at the fringe of our core biodiversity areas, as ecological buffers. Over the past two years, we have announced new nature parks, such as the Khatib Bongsu Nature Park, a rich mangrove and mudflat habitat, and the Rifle Range Nature Park, a key buffer for our Bukit Timah Nature Reserve. Last year, we also added new parks at Bukit Gombak and Pasir Panjang and enhanced existing ones, such as the Coastal Playgrove at East Coast Park, with more lush vegetation and natural landscapes. We have even expanded the greenery on our rooftops and facades of buildings and in our sky gardens, to over 140 hectares. We are well underway to meeting our target of 200 hectares of skyrise greenery by 2030.

Third, we have continued to enhance connectivity between our green spaces to help our native flora disperse and our fauna to traverse our island. We have completed more than half of the 300 kilometres of Nature Ways that we aim to implement by 2030 and we are on track to meeting our target of 500 kilometres of park connectors by 2030, with around 370 kilometres of park connectors completed so far.

Miss Rachel Ong asked how we will make our green spaces accessible to all Singaporeans. The moves we have made as part of City in Nature not only help nature to thrive in our city state but also bring all Singaporeans closer to our green spaces for all its benefits. Over nine in 10 households are now within a 10-minute walk from a park and we aim to reach 100% by 2030.

Our City in Nature efforts can also help us build up our climate resilience through nature-based solutions. For example, we have already begun to weave natural designs and plantings into our parks and streetscapes. By planting different shrubs and trees to mimic the multi-tiered structure of a natural forest, we can better connect our green spaces for animals like birds and butterflies and also beautify our city, provide shade, cool our surroundings and improve our air quality. We can also use nature-based solutions to help protect our coastlines from rising sea levels.

Looking ahead, as Minister Grace Fu had shared earlier, research and innovation will enable us to achieve a low-carbon future. We will continue to invest in science and technology for our city and our natural spaces.

Let me share some of our plans, which Members like Dr Shahira Abdullah and Mr Cheng Hsing Yao have asked about.

To support our City in Nature ambitions, we have invested in R&D under our Cities of Tomorrow (CoT) and the Marine Climate Change Science (MCCS) programmes to explore solutions that tap on nature to help strengthen our ecological, climate and social resilience. In one project, researchers created "green seawalls" that enhance our marine ecosystems at the same time. These specially-designed tiles can host a range of native species, such as crabs and sea snails, more abundantly than conventional seawalls. They will be piloted at Pulau Tekong and have the potential to be applied to other parts of Singapore.

The Cities of Tomorrow R&D programme will also improve our urban sustainability, such as by designing greener buildings for our tropical climate. For instance, air-conditioning uses a lot of energy. BCA and NUS are exploring the use of weather sensors and smart watches that track how building occupants respond to indoor conditions to optimise cooling and ventilation systems. This technology aims to reduce energy use while still providing comfort for the occupants.

I am glad to share that we will invest an additional $64 million into R&D under the City in Nature and Greater Sustainability pillars of the Cities of Tomorrow programme. This will support us in developing innovative solutions for a more sustainable, liveable and resilient city.

Let me conclude. Whether it is making our built environment and city more sustainable or transforming Singapore into a City in Nature, we all need to work together – Government agencies, industry partners, academics and researchers, nature groups and the wider community.

While we have made good progress so far, there is much more to do and we must press on in close partnership. Along the way, we can help local firms and our workers build expertise in sustainability solutions and create good jobs and good opportunities for Singaporeans. And we can grow a greener and more sustainable home for all of us – one where we live in harmony with nature as good stewards of our environment for generations to come. [Applause.]

The Chairman: Minister Chan Chun Sing.

The Minister for Education (Mr Chan Chun Sing): Mr Chairman, to achieve sustainability as our competitive advantage for Singapore, foundational education in our schools will be a key enabler; but the capabilities of our institutions – Universities, Polytechnics and ITE – and the competencies of our graduates and the workforce, will be the real needle movers.

Let me first provide an update on our efforts in our schools.

MOE has been making good progress since the announcement of the Eco-Stewardship Programme, or ESP, last year. Through the "4Cs" approach of Curriculum, Campus, Culture and Community, we continue to holistically nurture our students from Primary to pre-University levels to be environmental stewards for our future. We will continue to support our teachers for the ESP through professional development opportunities and teaching resources on sustainability in the Student Learning Space.

MOE is also developing an Eco-Stewardship Toolkit, which will include a repository of resources to further support schools in strengthening their sustainability journey.

Beyond our schools. I agree with Ms Foo Mee Har that our institutions play a critical role in Singapore's green transition. As part of our Green Plan effort, our institutions have made sustainability a strategic priority in their agendas, with some of our Autonomous Universities developing comprehensive masterplans on their sustainability targets and initiatives.

Miss Rachel Ong has asked how our institutions are stepping up efforts to support sustainable living and the green economy. There are two needle-moving areas that our institutions can contribute to the national sustainability push. One, leveraging their research and innovation capabilities to develop new products and services which enable other sectors of our society to tackle sustainability challenges. Two, developing the skills and competencies of our graduates and the workforce to enable them to seize opportunities in the green economy. Let me elaborate.

The deep research and innovation capabilities of our institutions position them well to advance Singapore's sustainability goals. In tandem with their hands-on approach to sustainability education, our institutions partner companies, agencies and our community on research and innovation projects that advance national sustainability efforts. This is done in two ways.

First, our institutions can develop innovative solutions to support the industry's green transformation. Through projects that they work on with the industry, the Polytechnics enable local enterprises to reduce their carbon emissions and achieve sustainability goals. For example, in January this year, Nanyang Polytechnic (NYP) launched a Sustainability Experience Centre in partnership with Schneider Electric, a company specialising in energy and automation digital solutions for efficiency and sustainability. Through the Centre, NYP staff and students will work with 100 small and medium enterprises by 2023, to co-create and implement energy-efficient initiatives.

In partnership with a local startup, Firmbase Private Limited, Ngee Ann Polytechnic's Environmental and Water Technology Centre of Innovation has recently developed a membrane for effective oil-water separation in the treatment of oily wastewater in the oil and gas industry.

Second, our Autonomous Universities are leveraging their deep research capabilities for sustainability R&D and using their own campuses as "living laboratories" to support national research and talent development efforts. For example, Nanyang Technological University (NTU) has partnered France's Alternative Energies and Atomic Energy Commission, or CEA, to set up the Singapore-CEA Alliance for Research in the Circular Economy, focusing on research around recycling of electronic waste.

As part of its Sustainability Plan, Singapore University of Technology and Design (SUTD) will be transforming its campus in Changi into a green experimental ground. This will allow SUTD faculty and students to partner the industry and the community to testbed new technologies and innovative projects for sustainable and smart living. Such studies may include waste management and reducing electricity usage.

Our institutions also play an important role in equipping our youth and workforce with the skills and competencies for the growing green economy.

The "Skills Demand for the Future Economy" report by SkillsFuture Singapore (SSG) noted that over 450 job roles across 17 sectors already require green skills in their job tasks. We can expect more new jobs to emerge and more exciting jobs to adopt green practices. We, therefore, need to invest in "green upskilling" for our workforce so that they can seize the new opportunities presented by green growth.

Our institutions are refreshing their specialised course offerings and are launching new programmes. These programmes provide young Singaporeans with forward-looking skills for emerging green jobs or existing jobs that are going to be "greened". For example, Republic Polytechnic recently launched the Diploma in Environmental and Marine Science, which prepares students to take up roles at the forefront of developing sustainable, environmental and aquaculture solutions.

Beyond equipping students to enter green jobs, we are also equipping the broader base of students with knowledge, competencies and skills related to sustainability. Almost all our institutions include sustainability as a theme for their common curricula for undergraduates. Singapore Management University, for instance, offers a common module on "Climate Change, Global and Local Solutions" as part of its core curriculum for undergraduates.

As part of the enhanced LifeSkills framework, students at our institutions will also explore and discuss sustainability-related issues and how these relate to their roles as global citizens.

Our institutions will continue to work closely with industry partners to curate more internship opportunities. These allow students to acquire and apply green skills in real-world settings and better prepare them for future careers in green jobs.

We will ramp up our Continuing Education and Training (CET) courses for those already working in industries that face a "green transition". Currently, our institutions offer more than 100 CET courses that provide training in areas, such as sustainable built environment, green engineering solutions, green finance and environmental sciences. One example is Temasek Polytechnic's Specialist Diploma in Energy Management and Sustainable Design which upskills workers in the building industry to take on job opportunities in energy efficiency design and technologies.

We will expand the offerings in our institutions to meet the market demand and our students' aspirations.

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Mr Chairman, to conclude, MOE is fully committed to contribute to a sustainable Singapore under the Singapore Green Plan 2030. Our schools will be a key foundational enabler for this journey, as they nurture the next generation of our students to be stewards in environmental sustainability. Our institutions will play significant, needle-moving roles by building up their capabilities and capacities, in partnership with the industry. They will leverage their research and innovation capabilities to develop sustainable products and solutions and equip our graduates and workforce with in-demand and emerging green skills.

However, it takes a whole-of-nation effort to make sustainability our way of life. We, therefore, welcome experts, educators, companies, community partners and all Singaporeans to join in this endeavour to embrace sustainability consciousness and practices, build skills for the green economy and develop innovative solutions to create a greener and lasting future for generations to come. [Applause.]

The Chairman: Clarifications, please. Ms Nadia Samdin.

Ms Nadia Ahmad Samdin: Thank you, Chairman. I thank Minister Grace Fu for giving the update on the progress of the SG Eco Fund. I would like to ask and clarify what environmental and community outcomes are tracked as part of the Fund to ensure the effectiveness of the Fund and that these are mapped towards the Singapore Green Plan.

Ms Grace Fu Hai Yien: I thank the Member for that question. The Eco Fund is actually designed to allow very broad-based participation and it is made very inclusive for different types of groups. Individuals, businesses, community, grassroots organisations or charities can participate. Actually, it allows groups to participate in a wide area of interests. It stretches across all the five pillars of the Singapore Green Plan. The key indication that we are looking for in all these groups is whether they are able to mobilise the community around them. That is the key that we are looking for.

The Chairman: Mr Sakitandi Supaat.

Mr Saktiandi Supaat: Chairman, I would like to thank the Senior Minister and the Ministers for their very detailed answers to some of our cuts. I have two clarifications.

My first clarification is with regard to the risk-weighted assets question that I asked in my cut. With the efforts to incentivise carbon credits and the ecosystem, may I ask Minister for Trade and Industry Mr Gan Kim Yong whether the efforts to incentivise by introducing risk-weighted assets are a bit lower for FIs, for example, to hold on to carbon credits? As of now, I think carbon credits are regarded as a high risk and the weights in the risk-weighted asset are quite high. That is my first question.

For my second clarification, I would like to first thank Minister for Transport S Iswaran for sharing that the cut-off for EV cars for COE Cat A has been increased to 110 kilowatts, thus benefiting 10 cars. But my question is with regard to my cut about the taxes – road tax for EVs. Can the Minister share a bit more how we can enhance this incentivisation of the rebate structure for EV cars on the road tax front? And the other one is on motorcars – what monitoring developments and assessments will be needed to ensure that earlier adoption incentive for electric motorcycles can be done earlier than later?

Mr Gan Kim Yong: Sir, I thank Mr Saktiandi Supaat for the question. In fact, banks do have exposure to carbon credits, for example, from trading in carbon credits arising from a market intermediary. Banks, therefore, can be exposed to the risk of losses arising from market movements in the price of carbon credits. Under the MAS' bank capital framework, banks' exposure to carbon credits are treated similarly as exposures to commodities. These attract a risk-weight of 187.5%. The risk-weight is agreed internationally in the capital standards promulgated by the Basel Committee on Banking Supervision and has been calibrated very carefully based on demonstrated riskiness of the commodities and carbon credits.

So, we will have to be very careful in adjusting the risk-weighting for some of these assets because it may inadvertently expose the banks and financial institutions to unacceptable risks. We will continue to work with the financial institutions to see how we can better quantify the risks so that we can manage risk-weighting better.

Mr S Iswaran: Mr Chairman, I thank the Member for his questions. If I may take the second one on electric motorcycles first.

As I have said earlier in my speech, the technology is still evolving, different models, different types of solutions. So, we are tracking this very closely and we will make an assessment of the need to put in place any specific measures that might facilitate earlier or quicker adoption of such e-motorcycles.

The Member's first question was around incentives for electric cars and, in particular, the road tax angle. So, let me address this in three parts.

First, road tax. As the Member would be aware, last year, we made a series of changes to the road tax treatment of EVs. As a result of that, the road tax payable by mass- to mid-market EVs is, generally, in line with their ICE equivalents. I think that does not seem to be an impediment per se, but we will continue to monitor this and see if there is a need for further tweaks.

Second, we have also introduced the upfront ownership cost adjustments through the EV Early Adoption Incentive which, when combined with the Vehicle Emission Scheme (VES), can result in a reduction of up to $45,000 in the upfront cost, depending on the OMV of the car. So, I think that is quite substantial.

So, when we put these together with the recurrent costs – and the likely savings in recurrent costs of running an EV, because the maintenance tends to be less costly and so on – we think that, on balance, the economics works in favour of EV adoption or, at least, not against it. But we will continue to monitor this because this is an evolving space.

But if I may make a final point, Mr Chairman, I think it is important to bear in mind that EVs are, first and foremost, vehicles; hence, "V"s. And that means our policies on car ownership, usage and, indeed, the emphasis on a car-lite strategy and greater use of public transport – those must remain as important principles that guide our larger transport policies. So, we want to encourage the adoption of EVs in the context of our larger green transition, but we also want to ensure that, where we can and where it is also within the ken of our people, greater transition to the use of public transport and less carbon-emitting modes of transportation.

The Chairman: Miss Cheryl Chan.

Miss Cheryl Chan Wei Ling: Chairman, I would like to seek two clarifications from Minister Gan Kim Yong.

The first one is on the projects of the sustainable Jurong Island project because, currently, most of all the projects and the carbon emissions are based on disclosures by the industry or the companies. I would like to understand from the Minister how we would be tracking these so that we can validate the carbon emissions that they said have been reduced over time. That is the first question.

The second question is with regard to the new technologies that we are going to bring across, whether on Jurong Island or in Singapore, how will we be doing this sandbox of the new pilots? Could the Minister elaborate further on how this would be possible so that people with good proposals would put them up?

Mr Gan Kim Yong: Thank you. In fact, I mentioned this in my speech, that as we embark on projects on reducing our carbon emission as well as new projects like carbon capture and so on, it is very important for us to develop our capability in tracking and verification in auditing some of these carbon reductions that they claim. In time to come, we will work with the various industries to set standards and work out a system where we can verify the actual carbon emission and the carbon savings that they have achieved. So, it is something that we will continue to work with the industry on and to develop the standards for that.

Miss Cheryl Chan also asked about how we embark on sandbox projects. EDB, ESG and A*STAR are working very closely with industries and looking at the various new technologies, new solutions. We welcome industries, companies or researchers who are interested in the respective areas of green projects to discuss with us. For the small and medium enterprises (SMEs), it would be easier for them to approach ESG to talk about potential projects and the various schemes that will be available that they can tap on to embark on these projects. And for the larger projects, like CCUS and so on, they can talk to EDB as well as A*STAR, which has a centre which I mentioned that they have set up with regard to carbon utilisation and technology.

The Chairman: Mr Louis Ng.

Mr Louis Ng Kok Kwang (Nee Soon): Thank you, Sir. I thank the Senior Minister for sharing that we will be doing some consultations when it comes to net-zero emissions. Could I ask that we consult with the NGOs and activists sooner rather than later because they have shared with me that they were consulted rather late when it came to the carbon tax increase?

Mr Teo Chee Hean: Yes, of course.

The Chairman: Ms Poh Li San.

Ms Poh Li San: Mr Chairman, I have two questions. The first one is for the Senior Minister. The Senior Minister mentioned that about 5,000 companies now have given their commitment towards the decarbonisation solution. I would like to know how many out of these 5,000 are actually present in Singapore and what kind of contribution would they be able to help us in our decarbonisation efforts locally.

On the second question, the Senior Minister and Minister Gan Kim Yong also shared about some of these new and nascent technologies, such as carbon capture and hydrogen, that we are now studying to open up our own technologies for future renewable energies. So, I would like to understand more about do we have any plans to devote more of our resources, our Budget, to investments in such energy, new nascent energy and technologies. Some of these facilities will require also large amounts of land to build them. Do we have plans to adjust our land use plans to accommodate such facilities?

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Mr Teo Chee Hean: On the first question, I do not have a count of how many of the 5,000 which have committed to net-zero in COP26 are actually in Singapore. But we do know that there are many companies in Singapore – international companies and major ones.

Minister Gan Kim Yong has given the example of Shell, which is a major E&C company, which has made a commitment to go to net-zero by 2050 – Scope 1, Scope 2, Scope 3. They have been long-time residents here in Singapore, contributing greatly to our economy and we will partner them. A number of other companies – ExxonMobil, for example, has committed to going net-zero in its operations by 2050. They are very interested in CCU as a technology.

Both companies are very interested in developing Sustainable Aviation Fuels (SAF) and other forms. These provide very good partnerships for us. There are other important companies in Singapore like Neste, which is a major producer of biodiesel. In fact, it is the biggest producer. We have one of the biggest plants in the world, if not the biggest plant in the world. And they have expressed an interest in expanding their range of products here in Singapore. So, there are a number of useful opportunities. Minister Gan Kim Yong may want to add to that.

Mr Gan Kim Yong: I mentioned this in my remarks earlier on that we have devoted quite a lot of resources into the development of technology and R&D. For example, I mentioned that, last year, we awarded $55 million of R&D projects under the Low-carbon Energy Research Funding Initiative to pursue R&D in low-carbon technologies, such as hydrogen. We are also consolidating the various institutions under A*STAR so that we can create greater synergy among these research efforts to focus on investment in the development of these technologies.

But I must add that many of these technologies are still very nascent and they are in the developmental stage. We will need to continue to remain nimble and monitor their development, keep pace with their development not only in Singapore but globally, and explore collaboration with international institutions, research institutions, so that we are able to keep tabs on the latest development in the technology and seek collaboration in developing some of these capabilities.

I also agree with the Member that it is important for us to also invest in building capability among our people, as well as I have also mentioned about training and upgrading. Minister Chan Chun Sing talked about education and how we equip our people to be able to invest their resources into R&D and also to capitalise on the employment opportunities that will be brought about by some of these emerging technologies.

The Chairman: Ms Foo Mee Har.

Ms Foo Mee Har: Thank you, Chairman. I have one clarification for Minister Gan Kim Yong. My question relates to the new Enterprise Financing Scheme (EFS-Green) to support local firms with a range of financing needs. As I said, despite the generous Government risk-sharing at 70%, the industry's feedback, mainly coming from the SMEs, is that the interest rate and loan terms offered by the participating financial institutions are actually not much different from commercial loans. So, I would like to ask the Minister if ESG would look into the feedback from the industry for FIs to look into more favourable terms for the EFS-Green to spur adoption. This is especially if the Government is risk sharing at 70%.

Mr Gan Kim Yong: The short answer is yes, we will take in the feedback from industries and to continue to refine our various schemes, including EFS-Green, so that they are relevant and are able to help the industries in embarking on this sustainability journey. But we also have to bear in mind that we have to also ensure that these schemes and these projects make sense and are viable, so that we have a sustainable outcome for the sustainable projects.

The Chairman: Any more clarifications? Happy to take clarifications. No? Okay. Mr Louis Ng, would you like to withdraw your amendment?

Mr Louis Ng Kok Kwang: Sir, our words in this House matter, so do our deeds. Let me start by thanking Members for their passionate speeches for our planet, for sustainability and for the health and livelihood of our people, and for Senior Minister of State Amy Khor's favourite topic of hawker culture. I also thank the Government for its strong, concrete and very significant steps forward in tackling climate change, in ensuring that we live and breathe sustainability and that we have fresh air to breathe – my most favourite and Senior Minister of State Amy Khor's second favourite topic of second-hand smoke.

But as some of you might realise, many of us are wearing green in this House today. In fact, it is the first time I am not wearing my white shirt in this House. And I should thank Speaker, the Chairman, for also greening Parliament, for turning up the heat during our debates in this Chamber, and, by that, I mean turning up the temperature in the air-conditioning and also phasing out the use of single-use plastic bottles. I thank him for all these steps in greening Parliament. But we are not just wearing green today; I am glad and, hand on heart, we are truly going green.

For that, I thank Senior Minister Teo Chee Hean, Minister Grace Fu, Minister Desmond Lee, Minister Chan Chun Sing, Minister S Iswaran and Minister Gan Kim Yong for their strong leadership and commitment on this issue and all the other political officeholders from the different Ministries and Statutory Boards for all their hard work and dedication. And, with that, Sir, I beg leave to withdraw my amendment.

The Chairman: So, amidst a 24^oC setting, is the hon Member given leave to withdraw the amendment?

Amendment, by leave, withdrawn.

The sum of $1,988,890,700 for Head L ordered to stand part of the Main Estimates.

The sum of $1,012,526,600 for Head L ordered to stand part of the Development Estimates.