Climate measures

Amidst mixed political and business sentiment on sustainability globally, Singapore's 2025 Budget sends a clear signal of the city-state’s steadfast commitment and methodical approach in the fight against climate change. This is evident from its recently updated 2035 National Determined Contributions paves the way for net zero emissions by 2050.

Singapore is underpinning climate ambitions with clear actions

Budget 2025 makes the mitigations plans set out in Singapore’s Biennale Transparency report a step closer to reality. The mitigation plans in Singapore’s Biennale Transparency report includes shifting to cleaner energy sources, reducing vehicular emissions, and improving energy performance standards of household appliances and promoting energy efficiency to households.

This has correspondingly manifested in the Budget through bold plans to study nuclear deployment, doubling down on energy transition, with the top up of another $5 billion to the Future Energy Fund launched in 2024, a new Heavy Vehicle Zero Emissions Scheme, and on a more citizenry level, public transport enhancements and extension of climate vouchers for more energy efficient appliances. These build on strong moves set out in prior budgets.

Singapore can be a world-class blended finance hub for energy transition

Financing, including blended financing, is crucial to build the necessary infrastructure to scale renewable energy usage, including the upgrading of power grids to cater for import of renewables, undertake large-scale, complex projects and develop new technologies. Amongst these bold moves is the doubling down on energy transition, with the top up of another $5 billion to the Future Energy Fund launched in 2024. This funding will also help lay the groundwork for a more diversified clean energy portfolio, as Singapore continues to explore low-carbon hydrogen to supply its power needs, alongside studies into less familiar territories of geothermal and nuclear energy.

Various initiatives over the years - including those by the Monetary Authority of Singapore – have established a strong foundation in developing Singapore into a leading sustainable finance hub. Complemented by our strong commitment to climate innovation, research, and development, Singapore can establish itself as a regional hub for blended financing to support the region's critical energy transition efforts.

Singapore is responding through adaptation as we head towards a more climate-impaired world

While we keep our eye on national mitigation efforts, Singapore is dealing with physical risks issues such as sea level rises. The additional $5 billion injected into Coastal and Flood Protection Fund takes a long-term and prudent view to protect our country and people from such physical risks. Risks for Singapore also include rising temperatures which was highlighted as part of Singapore’s Third Climate Change Study (V3). Singapore will not only need to continue to monitor sea level rises, but continue to adapt and manage a warmer Singapore and what its potential impacts on everyday lives and more vulnerable parts of society. Studies such as Cooling Singapore project and respective adaptation responses are essential steps towards a climate-resilient environment and people.

The 2025 Budget is a testament to Singapore’s proactive and “solutions-driven” approach to sustainability. Despite being a small country with natural constraints, Singapore continues to remain steadfast in the climate agenda. The journey towards a resilient and sustainable future is complex, but with visionary policies and concrete actions on the ground, Singapore is well-positioned to maintain its leadership in sustainability and deliver on its climate ambitions.