Global challenges like climate change require a strong response, and Singapore is doing its part to create a sustainable future. Singapore has set 2050 as the deadline for having net-zero greenhouse gas emissions. Everyone can be a part of the Green Plan to help Singapore strengthen its commitment to sustainable living and development and position it to attain its long-term aspirations of Singapore net zero emissions by 2050.
The Intergovernmental Panel on Climate Change (IPCC) has urged governments, individuals, and industrial sectors to work together to reduce greenhouse gas (GHG) emissions and achieve a net zero level to stop and reverse global warming to 1.50 degrees centigrade over pre-industrial levels.
The term “Decarbonization” refers to the process of lowering greenhouse gas emissions into the atmosphere. The main cause of this problem is CO2 or carbon dioxide. However, it also relates to the reduction of other harmful gases like ozone (O3), nitrous oxide (N2O), and methane (CH4).
Industries, other than transportation and electricity generation sectors intently connected with Decarbonization, are also responsible for efficiently reducing the levels of carbon dioxide and other gas emissions, regardless of the area, field, or sphere they are operating in. Decarbonization can be accomplished by changing over to EVs or electric vehicles from diesel or petrol vehicles, shifting to renewable energy, and applying carbon capture and storage technology to stop the let-out of CO2.
In addition, investments to develop more renewable energy sources for clean energy should be made to the extent of $3.5 trillion every year, and practically every sector of the economy would require a time of increased investment.
What DBS Can Do to Help Singapore Achieve Net Zero Emissions?
DBS is the first bank in Southeast Asia to publish a detailed set of emission reduction goals for their Scope 3 funded emissions and join the Net-Zero Banking Alliance (NZBA) in Singapore. The reduction goals guide the bank in the strategical allocation of funds to low-carbon alternatives instead of activities producing high carbon footprints.
DBS has successfully identified a few industrial sectors to achieve its Decarbonization goals and they are:
- Oil & Gas
- Real Estate
Other than these, two more sectors like Chemicals and Food & Agribusiness have been recognized for setting the stage for reducing emissions. The Net Zero Emissions by 2050 Scenario (NZE) of the International Energy Agency, among others, served as the foundation for the development of the seven Decarbonization targets.
Further, by offering sustainability-linked loans and use-of-proceeds loans, which are transition-focused, DBS has successfully lent SGD 480 million in transition financing in 2022.
The bank’s backing of India’s efforts to increase its ethanol distillation capacity to two times and blend as much as 20 per cent ethanol into petrol by 2025 is one such example. DBS was the first foreign bank to lend a transition loan of 1,750 million rupees to a leading producer of sugar and green energy in India. The financing was used as part of the company’s overall Decarbonization strategy to grow the company’s sustainable bioethanol industry.
Climate Impact X (CIX) is a global exchange and marketplace for the trade of high-quality carbon credits that DBS has established in collaboration with Standard Chartered, Singapore Exchange, and Temasek. Along with SustaintechX, they have collaborated with several prominent working groups and regional forums.
Businesses can invest in more environmentally friendly goods and services and pursue novel sustainability solutions. Such initiatives not only quicken Singapore’s economic transition to low-carbon or net zero emissions but also open up exciting new prospects.