Climate Action and Business Strategies Discussed at SGX Auditorium on 17 March 2025

Singapore, 17 March 2025 – A high-level dialogue titled “Navigating Climate and Business in 2025” brought together Minister for Sustainability and the Environment Grace Fu, Singapore’s Ambassador for Climate Action Ravi Menon, and business leaders to discuss the implications of COP29 for Singaporean businesses. The event, held at the SGX Auditorium, explored critical developments in climate finance, carbon trading, and sustainability strategies.

The sessions included insights from industry leaders such as John Ng (YTL PowerSeraya), Foo Peng Er (CapitaLand), Alvin Lee (Maybank), Yoon Kim (Schneider Electric), and Gabriel Wong (MVGX), who discussed their strategies for decarbonisation, focusing on sustainable procurement, energy efficiency, and innovative technologies.

The discussions were moderated by Bicky Bhangu and Cherine Fok (KPMG), with contributions from Kee Joo Wong, Co-Chair of the Singapore Sustainable Finance Association and CEO of HSBC Singapore.

Dr. Bicky Bhangu, Chairman of the Singapore Business Federation (SBF) Sustainability Action Committee and President of the UN Global Compact Network Singapore, opened the session by highlighting COP29’s breakthroughs, particularly in climate finance. The agreement to triple climate finance for developing countries to USD 300 billion annually by 2035 underscored the global commitment to scaling up investment in climate action. Another major milestone was the finalisation of Article 6, providing a framework for trusted carbon markets, a development in which Singapore played a key role.

Minister Grace Fu reflected on the evolving geopolitical landscape and its effects on climate commitments. She noted that the new Trump administration’s withdrawal from the Paris Agreement and increased domestic oil production presented challenges to international climate efforts. Meanwhile, the European Commission introduced regulatory changes that could significantly impact sustainability reporting and corporate due diligence requirements.

Ambassador Ravi Menon addressed how businesses must remain proactive despite these shifting political and economic conditions. He emphasised that decarbonisation remains a long-term strategic imperative, urging Singaporean businesses to adapt to new regulatory frameworks and sustainability expectations.

Singapore has taken concrete steps to support businesses in transitioning to a low-carbon economy. The government has pledged an additional SGD 5 billion to the Future Energy Fund, aiming to accelerate clean energy initiatives. New programmes such as the Sustainability Reporting Grant and the SME Sectorial NetZero Transition Programme are designed to help businesses measure and reduce their carbon footprint.

Other key initiatives include:

  • Singapore Emissions Factor Registry (SCFR): The first of its kind in Southeast Asia, providing accurate emission factors for carbon accounting.
  • NetZeroHub.sg Resource Portal: A digital platform offering toolkits, training, and solutions for businesses to accelerate their net-zero transition.
  • QUEST (Queen Bee Empowering Sustainability Transformation): Mobilising large enterprises to mentor SMEs in adopting sustainable practices.

Among the notable speakers was Mr. Alvin Lee, Country CEO of Maybank Singapore, who emphasised the increasing financial commitment required to support developing countries in their sustainability journey. He noted that the financial sector, particularly banks, plays a pivotal role in driving climate finance, stating, “The goal of increasing financing from $100 million to $300 million per annum requires all stakeholders to contribute. Banks have a crucial role in this objective.” He highlighted Maybank’s commitment to sustainability, including an $80 billion ringgit sustainable finance target by 2025, which the bank has already exceeded with $135 billion ringgit allocated to date.

The event also underscored the importance of small and medium-sized enterprises (SMEs) in advancing environmental, social, and governance (ESG) practices. Recognising that many SMEs lack the knowledge and capital to transition towards greener operations, Maybank, in collaboration with KPMG, has developed an ESG assessment tool. This initiative aims to guide SMEs in evaluating their sustainability readiness and accessing appropriate financial support.

A key focus of the dialogue was decarbonising Singapore’s power sector, which contributes approximately 36-40% of the nation’s carbon dioxide emissions. Industry leaders shared insights into ongoing efforts, including investments in new energy-efficient technologies, such as hydrogen-ready power plants and electricity imports from renewable sources in neighbouring countries.

Looking ahead, Singapore aims to achieve net-zero emissions by 2050, with intermediary targets set for 2035. The roadmap includes reducing carbon intensity, increasing the adoption of cleaner energy sources, and exploring emerging technologies such as carbon capture and nuclear energy. Minister Fu reaffirmed the government’s commitment to supporting businesses in their sustainability transition, ensuring a pragmatic and well-paced shift towards a low-carbon economy.

Source: IN Diplomacy Reporters