Singapore is keeping pace with the latest developments in water, energy and climate but the nation’s actual progress on waste, biodiversity and gender equality still lags behind fixed targets and commitments.
Deloitte’s Southeast Asia Sustainability Ambitions 2022 report, released in October, outlines the sustainability challenges faced by countries in Southeast Asia and the ambitions of the governments in addressing these challenges.
For the region to fully reach its economic potential, the report posits that the key to sustainable development is for the countries to work together in an Asean bloc and for the governments to form new alliances among different stakeholders.
In a collaboration between Deloitte Center for the Edge and the US-Asean Business Council, the report focuses on five key aspects of sustainability selected by US-Asean Business Council members: energy and climate, biodiversity, water, waste and gender equality.
Climate change will be won or lost in Asia Pacific, writes a team of Deloitte’s executives. “The ambitions and actions of the Asia Pacific region are what will tip the scales for the ultimate outcome of the global challenge of addressing climate change,” note Deloitte Southeast Asia’s chief executive officer Philip Yuen and sustainability and climate leader Giam Ei Leen, along with Duleesha Kulasooriya, managing director of the Deloitte Center for the Edge, Southeast Asia.
They add: “Due to the geographical location, vulnerability to the changing climate, and developing nature of the region, the stakes are higher for Southeast Asia when compared to other regions in Asia Pacific.”
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How Singapore fares
Singapore’s 2030 Green Plan is a holistic whole-of-nation movement to advance the national agenda on sustainable development, writes Deloitte.
“This multi-ministerial effort will include plans to double the number of electric vehicles on the roads, reduce waste sent to landfills by 30%, restore ecological habitats and so on.”
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The island state is the first country in Southeast Asia to introduce a carbon pricing mechanism, at $5 per tonne of greenhouse gas emissions (tCO2e) in 2019. This will be raised to $25/tCO2e for 2024 and 2025 and further raised to reach between $50/tCO2e and $80/tCO2e by 2030 in line with the country’s net-zero ambitions.
Singapore’s energy sector currently accounts for 40% of the country’s total carbon emissions.
Natural gas remains Singapore’s predominant fuel, making up approximately 95% of the country’s energy mix. The country aims to decarbonise and reach net-zero emissions by 2050 — a realistic goal, according to the Energy Market Authority.
“As a country with few alternative energy sources, its energy transition presents economic growth potential for the region through renewable energy imports and hydrogen technologies in the near future,” notes Deloitte.
Singapore also intends to tap into regional power grids, importing up to 4GW of low-carbon electricity by 2035, making up 30% of the country’s projected supply. Additionally, a $25 million investment by the government into hydrogen technologies in July signals the country’s interest in creating a hydrogen economy, says Deloitte.
In Budget 2022, the government announced that the public sector will issue up to $35 billion of green bonds by 2030. It has since introduced the Singapore Green Bond Framework with the Housing and Development Board (HDB) raising $1 billion through the issuance of its inaugural green bond in March.
Given Singapore’s large finance sector, it has also rolled out multiple schemes to promote sustainable finance, says Deloitte. The Monetary Authority of Singapore’s green investments programme (GIP), announced in 2019, committed US$2 billion ($2.83 billion) to invest in public market investment strategies with a strong green focus.
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Meanwhile, the Singapore Exchange (SGX) invested $20 million in ramping up ESG solutions. The Land Transport Authority also aims to phase out all internal combustion engine (ICE) vehicles by 2040.
Deloitte says there is a “strong push” for electric vehicles (EVs) while new diesel car registrations will be disallowed from 2025. “Encouraged by generous tax incentives, between end-2020 and end-July 2021, the number of EVs on Singapore’s roads has increased by 39%.”
A city in nature
Given its unique constraints as a land-scarce island nation, Singapore is applying a science-based approach to preserving natural capital while managing urban development pressures, says Deloitte.
As of today, more than 10% of the total land area has been safeguarded to form nature reserves, gardens, and parks.
By 2030, the country plans to add an additional 700ha of nature parks, gardens and skyrise greenery.
Biodiversity is about much more than just plants. By 2030, Singapore hopes to roll out species recovery plans for over 160 plants and animal species. Some two decades ago, a study titled Catastrophic extinctions follow deforestation in Singapore warned of a “looming mass extinction of biodiversity in the humid tropics”.
The 2003 paper by Australian ecologist Barry Brook and the late Navjot S Sodhi, professor of conservation biology at the National University of Singapore, says the loss of 95% of Singapore’s forest cover to urban development had contributed to a 28% species extinction rate for local biodiversity.
Since then, Singapore has reshaped urban plans to not just conserve the remaining biodiversity but bring back wildlife.
NParks also embarked on an Ecological Profiling Exercise to understand the dispersal patterns of animals.
Based on this computational model, urban planners then identified key ecological corridors as part of the Long-Term Plan, Singapore’s 50-year urban development plan. The plan includes the Khatib Nature Corridor, where more than 90ha of new green spaces will be introduced.
Three other nature corridors are under study, while a fourth could be identified when the old Paya Lebar Air Base is redeveloped.
Four national taps
On the issue of water, Singapore has built a diversified and robust supply of water known as the “Four National Taps”, comprising water from local catchment areas, imported water, NEWater and desalinated water.
This system allows for the country to meet their water needs in an integrated and cost-effective way, says Deloitte.
Singapore is an emerging “Global Hydrohub”, a leading centre for business opportunities and expertise in water technologies, with 180 water companies and more than 20 research centres in its ecosystem.
Singapore also hosts a biennial Singapore International Water Week, providing a platform for new innovations and to foster partnerships among industry players.
Close to US$500 million has been committed since 2006 to research, notes Deloitte. Singapore’s water demand could double by 2060 from the current 430 million gallons a day, with the non-domestic sector accounting for about 70%.
By this period, NEWater and desalination will meet up to 85% of future water demand in the country.
“As demand for water continues to rise in tandem with population and economic growth, it is imperative for Singapore to plan and implement water infrastructure well ahead to secure adequate and affordable supply of water for future generations,” says Deloitte.
Recycling waste
Singapore recycled some 55% of its solid waste in 2021 or about 3.83 million tons of the 6.94 million tons generated.
The amount of waste disposed of in Singapore has increased sevenfold over the last 40 years. At the current rate, Semakau Landfill — Singapore’s only landfill — will run out of space by 2035.
As such, Singapore’s inaugural Zero Waste Masterplan maps out Singapore’s key strategies in building a sustainable and resource-efficient nation.
Singapore also plans to build the world’s largest integrated waste management facility, with the first phase targeted for completion by 2025. Singapore’s domestic recycling rate is low at only 13%, with plastic recycling rate at a low 6%.
In 2020, under the new Mandatory Packaging Reporting framework, producers of packaged goods are required to submit packaging data and plans to the National Environment Agency. This is to implement an Extended Producer Responsibility (EPR) framework, which serves to improve recycling rates for packaging and to reduce the amount of waste sent to the landfill.
Singaporeans generate about 60,000 tons of electronic waste each year. In July 2021, Singapore introduced a nationwide electrical and e-waste management system to make recycling more convenient for consumers, with more than 300 e-waste recycling bins distributed at public locations.
Meanwhile, food waste currently accounts for about 12% of the total waste generated. From 2021, developers of new large commercial and industrial premises must set aside space for on-site food waste treatment systems. From 2024, large commercial and industrial food waste generators will also have to segregate their food waste for treatment.
The National Environmental Agency has set aside $1.76 million for applicants to cover the capital cost of these food waste treatment systems.
Some ways to go for equality
Singapore ranked fifth in the region and 54th out of 156 countries in the 2021 Global Gender Gap Index, largely hampered by the low representation of women in the political sphere, says Deloitte. “There have been significant improvements in female economic participation and opportunity. The resident labour force participation rate of women in the country has been increasing steadily from 57% in 2010 to 64.2% in 2021, narrowing the gap with men (77.2% in 2021).”
Nevertheless, the representation of women in senior leadership could be further improved, adds Deloitte. In 2021, 13% of Singapore companies were helmed by a female CEO.
In April, Singapore’s first White Paper on women’s development was presented for Parliament to debate. This was the culmination of feedback from a year-long nationwide “Conversations on Singapore Women’s Development”.
The White Paper proposed 25 action plans across five broad areas — equal opportunities in the workplace, recognition and support for caregivers, protection against violence and harm, other support measures and mindset shifts.
The White Paper was unanimously endorsed by Members of Parliament, signifying the government’s commitment, says Deloitte.
These action plans, implemented over a 10-year period, include a new set of Tripartite Guidelines on Flexible Work Arrangements to be introduced in 2024.
In response to the White Paper, non-profit gender equality advocacy group Aware highlighted that more could be done for groups such as migrant domestic workers, and religious and ethnic minorities.
Better workplace support for fathers to share caregiving burdens could also contribute to more equal gender outcomes, notes Deloitte.
The Ministry of Social and Family Development reported that the take-up rate of paternity leave was 55% in 2019, citing the lack of workplace support as the main reason for fathers not to use their leave.
