The hidden green in Singapore’s Budget

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??This week: The newly announced Singapore Budget contained no new measures focused on environmental sustainability, although it was heavy on progressive social measures.

The lack of attention to green issues was not a surprise, although few expected a complete dearth of environmental-related measures. Still, it was widely accepted that the cost of living and economic resilience amid global uncertainties were more pressing problems.

Yet, just because there were no new measures does not mean the Singapore government isn’t doing anything on environmental sustainability.

Digging into the detailed expenditure estimates for the various ministries reveals a number of notable projects for which money will be allocated in the year starting Apr 1, 2023.

From the Ministry of National Development:

• S$609,000 for solar capability building for public housing, part of a S$31 million project.
• S$4.78 million for electric vehicle upgrading, part of a S$9.5 million project.

From the Ministry of Trade and Industry:

• S$19.46 million for an Energy Efficient Grant call for power generation companies, part of an Energy Market Authority programme.

From the Ministry of Sustainability and the Environment:

• S$611,100 for the development and operation of Singapore’s International Carbon Credits registry, part of a S$1.95 million project.
• S$2.94 million for the development of the local aquaculture sector, part of a S$12.29 million programme.

There is also the possibility of new sustainable finance issuance. In a section discussing outlays for public debt, Budget materials reveal estimates for S$3.4 billion of outlays in the coming fiscal year, which is more than five times the FY22 amount of S$612.4 million. The increase will mainly come from discounts from a planned reopening of infrastructure bonds in the coming fiscal year. Singapore’s inaugural green bonds were issued in 2022 under this bond framework, so there is a possibility that the reopening could be from the green tranche.

The year ahead may not feature new headline-grabbing environmental initiatives by the Singapore government, but a lot of implementation work is being done to grow the seeds planted in previous years.

?? Top ESG reads:

1. Sustainability in Singapore must include more companies and more aspects, says the chief of UN Global Compact.
2. Regulators and investors are increasingly calling for disclosures on diversity, equity and inclusion , and it’s up to the boards to steer their companies through this journey, says Singapore Institute of Directors member Na Boon Chong.
3. Thailand is taking part in studies to understand the impact of a controversial technology called solar radiation modification, which tries to mitigate global warming by reducing sunlight.
4. Indonesia’s Pertamina Geothermal is considering issuing a green bond as its IPO looms.
5. China has enough wind and solar capacity to power almost every home, although most of its electricity demand still comes from industry.

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