Singapore is not a major GHG producer. However, the country is making significant domestic efforts towards net zero emissions by aligning itself with international obligations, such as the Paris Agreement, to help limit global warming to 1.5°C above pre-industrial levels. With transport being Singapore’s third largest CO2e emitter, accounting for about 16% of total emissions, aggressive efforts are being made under the SG Green Plan 2030 to promote public transport as the key mode of transport, green public transport fleets and private vehicles, and encourage active mobility modes, culminating in a pledge to cut 80% of peak land transport emissions by or around the middle of the century.

In its Sustainability Report 2022-2023, Singapore’s Land Transport Authority (LTA) noted that travelling by EV, electric bus, or train cuts carbon emissions by 50%, 70%, and 90%, compared to driving an ICE car. Additionally, the carbon footprint for active modes (eg walking or cycling) is practically zero.

Singapore’s Green Plan 2030: A overarching framework for achieving net zero

The Singapore Green Plan 2030 (the Green Plan) is a nationwide movement to advance the city-country’s national agenda on sustainable development. The Green Plan has charted out ambitious and concrete targets that would strengthen Singapore’s commitments under the UN’s 2030 Sustainable Development Agenda and Paris Agreement, as well as position the country to achieve its long-term net zero emissions aspiration by 2050. The Green Plan is a multi-agency effort spearheaded by five ministries: i) Ministry of Education (MOE), ii) Ministry of National Development (MND), iii) Ministry of Sustainability and the Environment (MSE), iv) Ministry of Trade and Industry (MTI), and v) Ministry of Transport (MOT).

The Green Plan includes give key pillars under which various sustainability targets are set. These pillars are: i) City in nature, ii) sustainable living, iii) energy reset, iv) green economy, and v) resilient future. The discussion on transport-related sustainability goals are included under sustainable living and the energy reset pillars. The table below includes the list of all sustainability goals for the transport sector.

Singapore’s land transport sector

The land transport sector's emissions peaked in 2016 at 7.7m tCO2e, well in advance of the 2030 timeline set at the national level. The Singaporean Government has established a new goal to cut emissions from the peak in 2016 by 80% by the middle of the century, demonstrating its commitment to decreasing emissions from land transport.

Greening public transport by making Walk-Cycle-Ride the preferred mode of travel

Singapore's efforts to lessen the carbon footprint of the land transport industry are outlined in the Land Transport Master Plan 2040. Going car-lite by promoting the use of Walk-Cycle-Ride forms of transportation is a major step towards reducing emissions from the land transportation industry. The goal of the strategy is to make sure that people can get to the job in 45 minutes or less during peak hours and to the closest neighbourhood centres in 20 minutes or less by walking, cycling, or riding. The Government intends to raise the mass public transport modal share during peak hours to 75% by 2030, and the Walk-Cycle-Ride modes will make up 90% of peak period journeys by 2040. Singapore is making moves to green its public transport operations in an effort to significantly cut emissions. These actions include developing the country's bicycle network, switching to sustainable energy vehicles for public transportation, and growing the Mass Rapid Transit (MRT) system while also enhancing its reliability.

Increasing the MRT network: By the early 2030s, Singapore hopes to have roughly 360 km of rail network. This would mean that eight out of 10 residences would be connected to an MRT station within ten minutes. The construction of Singapore's MRT train stations and lines also take into consideration the environmental sustainability. For instance, the Downtown Line and Circle Line's eco-friendly attributes have earned them the BCA Green Mark GoldPLUS certification. The BCA Green Mark for Transit Stations was also introduced by Singapore's Building and Construction Authority (BCA) in collaboration with LTA. In 2019, Canberra became the first station to be awarded the Platinum Green Mark for Transit Stations designation.

Switching to green buses in public transportation: All new public buses acquired since 2020 have been cleaner-energy vehicles, such as electric or hybrid vehicles. The Government anticipates having half of its public buses run on electricity by 2030. As at end-2022, there were 5,847 public buses in Singapore, which has grown to a fleet size of 6,000 now. The LTA had bought 60 electric buses in 2018 as part of a pilot scheme to better understand the operational and technical considerations of a larger-scale rollout. In 2023, LTA announced that a total of 360 additional electric buses will be added to Singapore’s public bus fleet, taking the total number of public buses running on batteries here to 420 (c.7% of the total fleet size). The contract also includes an option to buy up to 60 more electric buses, if needed. Singapore intends to gradually replace all current diesel buses with 100% cleaner energy buses by 2040 as part of the Land Transport Master Plan 2040.

Adding charging capacities for green buses at the depots: Additionally, in 2023, LTA granted two contracts for the installation of charging systems at bus depots that are presently under construction in Sengkang West, East Coast, and Gali Batu, in order to facilitate the introduction of the new battery-powered buses. The Sengkang West and East Coast depots will have chargers installed by a Busways and Shell Singapore collaboration, while the Gali Batu depot will have chargers installed by Presico Engineering. The charging systems for the new buses will also be rolled out progressively from Dec 2024 as the construction of the depots in Sengkang West and Gali Batu is expected to be completed in 2024, while the depot in East Coast is expected to be completed in 2025.

LTA’s tender also includes the option to install chargers at the future Kim Chuan bus depot and two upcoming integrated transport hubs in Punggol Coast and Pasir Ris. These will be exercised once conditions allow for installation works to proceed.

Harnessing solar power in our public transport infrastructure: LTA declared in 2022 that it will mount solar panels on the roofs of newly constructed or recently renovated land transport infrastructure, including offices, facility buildings, rail and bus depots, in an effort to save energy costs and carbon emissions. This will help LTA meet its current goals of deploying 16 megawatt-peak (MWp) of solar energy by 2025 and 25 MWp by 2030. The transport authority also issued a request for bids in Mar 2022 to install solar panels on land transport infrastructure, such as covered linkways, MRT stations, transport depots, pedestrian overhead bridges and the Integrated Train Testing Centre (ITTC) in Tuas, which is now known as The Singapore Rail Test Centre (SRTC)1. LTA was expecting that it will be able to provide up to 20MWp of extra solar power through the open tender. This is equivalent to the power needed to charge up to 285 single-deck e-buses for an entire year.

However, solar leasing company Sunseap Leasing was given a considerably smaller contract in Apr 2023 to install the panels in more than ten locations. These comprise, among other places, Sengkang Depot, Tuas Bus Terminal, Dhoby Ghaut MRT station, and Buona Vista MRT station. Up to 8.5 gigawatt-hours (GWh) or 7.9-megawatt peak (MWp) of solar capacity each year, or the capacity to fulfil the charging requirements of up to 113 single-deck electric buses, will be generated by the solar panels. The panels were expected to be rolled out within 12 months from the date of handover of the sites by public transport operators.

Promoting the use of electric taxis: Singapore's taxi operators have made a commitment to run at least half of their cars on electricity by 2030. LTA will increase the eight-year statutory lifespan of all electric taxis to ten years in order to facilitate this. Taxi companies will have more time as a result to maximise their investments in electric taxis. By 2030, half of GrabRentals' fleet of private rental cars will be electric. To promote EV adoption, LTA intends to carry on collaborating closely with operators of private vehicle rentals.

Expanding the nationwide cycling network: Singapore currently has c.580km of cycling paths, with around 30km added in 2022. The Government plans to expand the cycling path network to around 1,300km by 2030 under the Islandwide Cycling Network (ICN) Programme. These cycling paths will connect commuters from their homes to MRT stations, bus interchanges, and nearby shopping malls and schools.

Promoting cleaner energy vehicles through adoption of EV

Even though private automobiles are often less environmentally friendly than public transportation, their carbon footprint can still be decreased by switching to electric cars (EVs) with zero exhaust emissions in place of ICEs. According to LTA estimates, switching from automobiles, motorcycles, vans, and minibuses to EVs could reduce Singapore's yearly emissions by 1.5-2m tonnes. All new car and taxi registrations starting in 2030 will be of cleaner energy models, which include electric, hybrid, or other cleaner alternative energy or fuel. This is done to support the goal of having 100% cleaner energy cars by 2040. In 2025, the Government plans to stop registering new diesel vehicles and taxis.

Singapore’s key goals to support the reduction of vehicular emissions are as follows: i) 100% of the public residential towns to be EV-ready by 2025; ii) c.60,000 EV charging points by 2030 (to sync with EV adoption rate); and iii) 100% of vehicles to run on cleaner energy by 2040. To support the adoption of EVs, Singapore has adopted a three-pronged approach:

Lower the cost of acquiring an EV through supportive vehicle taxes and incentives:Singapore has implemented steps and changed policies to lower the cost of purchasing and owning an EV relative to a hybrid or ICE vehicle in order to encourage the transition and adoption of EVs. The EV Early Adoption Incentive (EEAI), the Enhanced Vehicular Emissions Scheme (VES), the floor reduction in the Additional Registration Fee (ARF), and the revision of the road tax structure for electric cars are among the few.

Introducing regulations and standards: Singapore has made an effort to establish transparent laws in order to create a strong EV ecosystem. Technical Reference 25 (TR25), the nation's official EV charging standard, is routinely examined by officials, businesspeople, and academics to make sure it stays in line with industry best practices. Singapore gave LTA new legal authority in Jul 2021 to encourage and oversee the safe use of EVs and EV charging. The legislative framework necessary to guarantee the security, dependability, and accessibility of Singapore's EV charging network was established by the Electric Vehicles Charging Act 2022, which was passed in Nov 2022. Some of the key points from this act are as follows:

i. Every charger that is provided needs to be certified and registered with LTA, as well as meet all safety requirements. The correct operation and upkeep of EV chargers shall be the responsibility of Registered Responsible Persons;

ii. EV charging operators will be subject to a new licencing system. Licence holders must abide by regulations pertaining to data sharing, obtaining public liability insurance, and ensuring service uptimes;

iii. A minimum of EV chargers must be installed in all new construction as well as buildings undergoing major electrical and building renovations, together with extra electrical capacity for charging;

iv. The Building Maintenance and Strata Management Act 2004 will reduce the voting threshold for resolutions allowing condominiums to install EV chargers for residents' use to 50%, provided that the proposal does not use Management Corporation Strata Title (MCST) funds and that the lease contract with the EV charging operator is no longer than 10 years.

Large scale EV charger deployment: To encourage the use of EVs, the Government has announced plans to install EV chargers in public housing carparks over the next few years, upgrade the current electrical infrastructure to support more people using residential charging networks, and regularly review new policies and regulations to ensure the dependability and safety of EV charging.

By 2030, Singapore wants to have 60,000 EV charging stations installed around the country, with 40,000 of those being located in public parking lots and the other 20,000 in private buildings. By 2025, every Housing Development Board (HDB) township will be EV-ready, and at least 12,000 EV charging stations will be installed in 2,000 HDB parking lots. Singapore has already finished installing more than 600 EV charging stations in more than 200 public parking lots nationwide as part of the LTA-URA pilot project. In Nov 2022, LTA awarded the first largescale tender, which will see charging points deployed across all HDB carparks by the end of 2025. According to LTA, there were around 6,000 charging stations in public and private areas on the island as of the end of Dec 2023.

Owing to the Government's initiatives to encourage the purchase of EVs, new registrations for electric cars accounted for 18.2% of all new registrations in 2023, a 5% increase over 2022 and nearly five times higher than in 2021.

Green financing in the land transport sector

LTA supported MOF in developing the Singapore Green Bond Framework for the issuance of Green Singapore Government Securities. In 2023, a total of SGD700m raised from the Government's first sovereign green bond was allocated to finance the upcoming Jurong Region Line (JRL) and the Cross Island Line (CRL) on Singapore's rail network. As per a news report, MOF said when both lines are fully operational, it will result in total carbon savings of between 100,000 and 120,000 tCO2e annually. This is equivalent to taking 22,000 cars off Singapore's road. It also added that the financed emissions avoided ranged from 1,200 to 1,800 tCO2e of GHG emissions per year.

LTA has also contributed to MOF's Singapore Green Bond Report, which accounts for the allocation of the green proceeds and the expected environmental impact. LTA will further be developing and publishing its own Green Bond Framework to finance green projects, such as electrical infrastructure upgrades to support EV charger deployment. It will adhere to internationally recognised market principles, standards, and best practices when embarking on its own Green Financing initiatives.

Singapore’s aviation sector

Singapore launched the SGD50m Aviation Sustainability Programme (ASP) in Mar 2023 to provide up to 70% funding for sector-wide projects and up to 50% funding for company-level projects pertaining to sustainable aviation. Since issuing its initial request for applications, the ASP has provided support for four sustainability projects. In addition to the recent trials using renewable diesel, the plan has provided funding for research into airside vehicle electrification, installing solar panels at the airfield, and demand aggregation for SAF.

The Singapore Sustainable Air Hub Blueprint is the state action plan for Singapore's aviation industry's decarbonisation and sustainable growth, created by the Civil Aviation Authority of Singapore (CAAS). In order to sustain the expansion of the aviation sector in the future decades, environmental sustainability and the competitiveness of the Singapore air hub must be balanced. This commitment is shown in the Blueprint, which also lays out Singapore's medium- and long-term goals and specific actions that CAAS and the aviation industry will take to decarbonise Singaporean aviation.

In accordance with the Blueprint, CAAS will collaborate with aviation stakeholders to achieve net zero emissions for both domestic and international aviation by 2050 and to reduce domestic aviation emissions from airport operations by 20% from 2019 levels (404k tCO2e). In order to decarbonise the Singapore aviation industry, CAAS will implement 12 projects across the airline, airport, and air traffic management (ATM) domains. CAAS will also put in place five enablers to create the conditions for the effective implementation of these decarbonisation initiatives.

Key action points under airport domain

Solar power deployment: The Changi Airport Group (CAG) and CAAS are collaborating to expand the use of solar electricity at the Changi and Seletar airports. With more than 20MWp of installed solar power as of the end of 2023, Changi Airport will have produced over 4% of the approximately 700GWh of electricity it consumed in 2019. CAG hired Keppel (KEP SP, NR) in Feb 2024 to design, construct, own, and run Changi Airport's solar photovoltaic (PV) systems for a 25-year period. When the solar PV systems are ready, their total generating capacity will be 43MW-peak (MWp). Of this, the airfield system will provide the remaining 5MWp of solar generation capacity, with the 38MWp coming from the rooftop system. With the new solar PV systems, CAG would cut its carbon emissions by roughly 20,000 tonnes annually, or 10% of current 2019 energy usage levels. Each year, the systems will produce enough solar energy to power over 10,000 HDB apartments with four rooms.

Clean energy airside vehicles: In addition to installing more charging stations, Changi Airport will increase the use of cleaner energy for airside vehicles, aiming to have all airside vehicle fleets running on cleaner energy sources by 2040. All new light vehicles, including cars, vans, and minibuses, as well as some new heavy vehicles, like tractors and forklifts, will run on electricity starting in 2025. CAAS will start an experiment on the use of renewable diesel (RD) for airside vehicles, especially heavy and specialist trucks, in order to facilitate this transition. CAG, dnata Singapore (dnata), SATS (SATS SP, NR), and SIA Engineering Company (SIE SP, NR) will be involved in the testing. dnata, Changi Airport's ground handler, was the first to initiate experiments. It began a six-month trial on 26 Apr 2024, utilising Esso Renewable Diesel R20, which is made with at least 20% renewable content, to power a variety of specialised ground support vehicles and equipment, such as aircraft pushback tractors and transporters. Over the coming months, CAG, SATS, and SIE will carry out comparable experiments for their respective procedures and equipment.

Building energy efficiency: In addition to gradually modernising the airport terminal buildings' air conditioning systems, which consume over half of the airport's electricity, Changi Airport has been implementing passive design strategies, such as using heat-reflecting facade materials, to reduce the energy consumption of its air conditioning systems. The new Terminal 5 will also be designed to achieve the stringent Green Mark Platinum Super Low Energy Building standard.

Low-carbon electricity imports: Changi Airport will leverage the Energy Market Authority’s (EMA) plans to reduce our national grid emission factor (GEF), including the use of low-carbon electricity imports, for the aviation sector to reach net zero domestic emissions by 2050.

Resource circularity through waste-to-energy: In collaboration with stakeholders, CAAS will research the viability and potential of an on-site waste-to-energy facility at Changi Airport. This facility may use waste as a feedstock to produce biofuel or power for use within the airport. The study will determine the most viable and efficient waste-to-energy pathway through waste audit and technical assessment.

Key action points under airline domain

The majority of emissions from international aviation come from flight operations, and these emissions are naturally difficult to reduce. The adoption of SAF is anticipated to generate around 65% of the carbon emissions reduction required to attain net zero by 2050, making it a crucial pathway for the decarbonisation of aviation.

National SAF target and SAF levy: Starting in 2026, flights leaving Singapore will have to utilise SAF in order to encourage the country's adoption of the technology. In order to stimulate investment in SAF production and create an environment for a more reliable and reasonably priced supply, Singapore will first set a target of 1% SAF use. The objective is to increase the SAF use from 1% in 2026 to 3–5% by 2030. CAAS will also introduce a SAF levy to support the purchase of SAF to achieve its target. The levy will be set based on the SAF needed to achieve 1% use and the projected SAF price in 2026. The levy will provide cost certainty to airlines and travellers and will vary based on factors such as distance travelled and the class of travel. CAAS projects that it could increase economy class ticket prices on a Singapore-Bangkok direct flight by around SGD3, a Singapore-Tokyo flight by SGD6 and a Singapore-London flight by SGD16. Passengers in premium classes will pay higher levies.

Central SAF procurement: The purchase of SAF will be centralised, utilising the levies collected to aggregate demand and realise economies of scale, in an effort to further control the cost of utilising SAF. Companies and organisations will also be encouraged to use the single procurement process for their voluntary SAF purchases in order to effectively and credibly lower their carbon emissions from air travel.

SAF production in Singapore and the region: In order to boost SAF production capacity in Singapore and the surrounding area, CAAS and the Government will collaborate closely with industry partners. This will enable Singapore to take advantage of the region's abundant supply of possible feedstock as well as the country's already-established petrochemical industry. Additionally, it will help to meet the growing need for SAF in Singapore and the surrounding areas.

The largest RD refinery in the world was established by Neste in 2010 and is located in Singapore. Neste's refinery in Singapore was expanded in May 2023, bringing its total yearly production capacity for renewable products to 2.6m tonnes. This includes the production of renewable diesel, SAF, and renewable raw materials for polymers and chemicals. The plant has the capacity to produce up to 1m tonnes of SAF. All of the raw materials used to make Neste's SAF are leftovers and renewable trash. Compared to fossil jet fuel, it can lower GHG emissions by up to 80% when utilised in its unblended form over the course of its life cycle.

A purchase agreement was signed in May 2024 between Neste and Singapore Airlines (SIA SP, NR) for the procurement of 1,000 tonnes of Neste MY Sustainable Aviation Fuel. This will make SIA and Scoot, the two airlines in the group, the first carriers to receive SAF, produced at Neste’s refinery in the country, at Changi Airport. Neste will blend the SAF with conventional jet fuel according to the required safety specifications and deliver the blended jet fuel to Changi Airport's fuel hydrant system in two batches: one in 2Q24 and one in 4Q24. By reaching this milestone, Neste will strengthen its end-to-end SAF supply chain capabilities in Singapore by supplying its SAF to airlines directly for the first time at Changi Airport.

Airline fleet renewal and operational improvements: Singaporean airlines have consistently modernised their fleet by purchasing newer, more fuel-efficient aircraft, which also lower emissions. The local airlines have also improved their operations to use less fuel, such as by reducing weight and the amount of time that aircraft auxiliary power units are used while the aircraft is on the ground. To further reduce in-flight fuel consumption, flight plans and flight management are enhanced. This entails reducing airspace congestion, finding more efficient routes, and utilising digital and data analytics tools.

Due to the SIA's investment in contemporary and fuel-efficient aircrafts, emissions and fuel consumption have greatly decreased. Compared to their earlier generation aircrafts, the Airbus A350 and Boeing 787 are around 25% more fuel efficient. The Airbus A350F and Boeing 777-9, which will be delivered in the upcoming years, are among the new generation aircraft in which SIA is further investing. The group presently has one of the youngest aircraft fleets in the world, with an average age of c.7 years, thanks to its fleet modernisation initiatives.

Key action points under air traffic management domain (ATM)

Fuel burn should be decreased by enhancing air traffic management (ATM) through the purchase of cutting-edge Automatic Dependent Surveillance (ADS) systems, the adoption of novel air traffic management strategies to maximise flight operations, and cooperation with regional partners to attain more seamlessness. In order to enhance ATM operations, CAAS intends to carry out three initiatives over the following five years. When taken as a whole, these efforts should result in a 10% decrease in emissions and increased fuel use.

Advanced demand-capacity balancing implementation: CAAS will work with stakeholders to enhance the management of air traffic vis-à-vis available capacity, including improving coordination and management of longer-haul flights, as well as enhancing the reliability, timeliness, and accuracy of weather forecast information through the use of predictive tools to support decision making. CAAS is developing the operational requirements for integrating the Long-Range Air Traffic Flow Management (LR-ATFM) concept into the existing ATFM system and engaging stakeholders and partner Air Navigation Service Providers (ANSPs) to refine the concept of operations. Implementation of LR-ATFM operations is planned for 2026.

Performance-based navigation enhancement: CAAS will collaborate with partner Air Navigation Service Providers (ANSPs) in the region to implement more direct routings on a wider scale and in the longer-term, work towards introducing Free Route Airspace to bring about optimised capacity and flexible flight trajectories. CAAS will also develop smart tools to facilitate the optimisation of descent flight profiles within Changi Airport which will help reduce fuel burn and emissions. CAAS has been facilitating Continuous Climb Operations and Continuous Descent Operations (CCO and CDO) where traffic permits. CAAS estimates that CCO and CDO implemented at Changi Airport has enabled fuel savings of up to 150kg, and 470kg of CO2 emissions reduction for each flight.

Gate-to-gate trajectory optimisation: CAAS is collaborating with stakeholders and partner ANSPs to work towards Trajectory-Based Operations. CAAS is also implementing a decision support tool to optimise the departure intervals between aircraft, which will enhance runway efficiency.

Singapore’s maritime sector

The Maritime Singapore Green Initiative aims to encourage clean and environmentally friendly shipping in Singapore while minimising the negative effects of shipping and related activities on the environment. The Maritime and Port Authority of Singapore (MPA) promised to fund the Maritime Singapore Green Initiative (MSGI) with up to SGD100m over five years in 2011. The initiative was improved in 2019 and extended until 31 Dec 2024, with the goal of promoting shipping's decarbonisation. It is a comprehensive initiative comprising four voluntary programmes designed to recognise and provide incentives to companies that adopt clean and green shipping practices over and above the minimum required by the IMO Conventions:

i. Green Ship Programme (GSP). Provides incentives to Singapore flagged-ships that voluntarily adopt solutions that enable ships to exceed environmental regulatory standards set by the IMO;

ii. Green Port Programme. Provides incentives to encourage environmental sustainability amongst ocean-going vessels calling at the Port of Singapore and MPA licensed harbour craft;

iii. Green Energy and Technology Programme. Aims to encourage Singapore-based maritime companies to develop/conduct pilot trials for green technologies that can help vessels meet Singapore’s Maritime Singapore Decarbonisation Blueprint 2050 targets;

iv. Green Awareness Programme.

Published in 2022, Singapore's Maritime Singapore Decarbonisation Blueprint: Working Towards 2050 study lays out specific, long-term plans for developing a sustainable maritime city. The Blueprint will help Singapore fulfil its obligations under the Paris Agreement, the Initial IMO Strategy, and the UN 2030 Sustainable Development Agenda. The IMO handles worldwide emissions from international shipping. In order to reduce GHG emissions from international shipping by at least 50% by 2050 compared to 2008, the IMO adopted the Initial IMO Strategy in 2018 and is actively working to phase them out. Singapore actively participates in the IMO's development of policies and initiatives aimed at lowering these emissions.

The blueprint outlines seven areas, which MPA will focus on to support the decarbonisation of the maritime industry:

Port terminals. Singapore’s port terminals will transit towards a low-carbon future, through the adoption of cleaner energy, automation and digitalisation. By 2030, Singapore’s port terminals will reduce absolute emissions by at least 60% from 2005 levels, amidst projected growth in volumes. By 2050, its port terminals aim to achieve net zero emissions. These planned strategies to achieve these targets include the greening of port handling equipment, port vehicles, and terminal buildings, as well as improving energy efficiency and adopting cleaner energy alternatives.

By 2050, Port of Singapore Authority (PSA) would have fully transited away from diesel fuel. Its container handling operations will be powered by electricity, supplemented by low or zerocarbon energy sources such as hydrogen. Jurong Port Singapore (JPPL) will also introduce cleaner alternative fuels in phases by 2026, such as biodiesel, to power its forklift fleet. This switch to cleaner energy sources is estimated to achieve approximately 15-20% reduction in emissions as compared to traditional diesel.

Domestic harbour craft. Domestic harbour craft perform a range of essential marine services within the Port of Singapore, including the delivery of ship supplies and bunker as well as towage and launch services. As part of the efforts to mitigate national emissions, MPA is committed to reducing emissions from domestic marine transportation with a progressive and phased approach.

By 2030, MPA aims to reduce absolute emissions from the domestic harbour craft fleet by 15% from 2021 levels, through the adoption of lower-carbon energy solutions such as blended biofuel, LNG, diesel-electric hybrid propulsion, and full-electric propulsion. By 2050, MPA aims for the harbour craft fleet to halve 2030-level emissions by transitioning to full-electric propulsion and net zero fuels.

Future marine fuels, bunkering standards and infrastructure. Singapore is the world’s largest bunkering port, with a total of 50m tonnes of bunkers supplied in 2021. As a world-class bunkering hub, Singapore will be ready for a multi-fuel bunkering transition to support the future of international shipping, by supplying low and zero-carbon marine fuels including biofuels, methanol, ammonia, and potentially, hydrogen, while enabling green technologies such as carbon capture, utilisation and storage (CCSU).

While not favouring any particular fuel type, MPA expects hydrogen and its carriers (including ammonia, e-methanol) as well as bio-LNG to potentially play important roles in the decarbonisation of international shipping in the mid to long term. Hydrogen can serve as an energy carrier to store and transport RE.

Singapore Registry of Ships (SRS). The SRS is consistently ranked amongst the top five ship registries in the world, with its fleet size crossing a significant milestone of 96m gross tonnage in 2020. As the leading flag of choice, the SRS is committed to work with ship owners and operators to achieve their green aspirations – including meeting the IMO’s GHG targets and adopting low- and zero-emission solutions – through the provision of recognition, incentives and technical guidance. Singapore’s Green Ship Programme (GSP) provides incentives to Singapore flagged-ships that voluntarily adopt solutions that enable ships to exceed environmental regulatory standards set by the IMO. Over the longer term, MPA aims to have at least 50% of the SRS fleet to be GSP ships by 2050.

Efforts at the IMO and other international platforms. As a leading global hub port, bunkering hub and shipping registry, Singapore will advance strong, credible and inclusive climate action at the IMO and international fora. Singapore recognises the fundamental importance of supporting mid- to long-term Market-Based Measures (MBMs) that achieve three key objectives: firstly, further reducing the sector’s GHG emissions in line with the goals of the Initial IMO Strategy; secondly, incentivising the transition to low- and zero-carbon emissions solutions; and thirdly, assisting climate action in developing countries. To this end, Singapore supports a global carbon levy on international shipping in the medium to long term.

Research & development and talent. MPA has committed SGD80m worth of funding for maritime decarbonisation R&D. The programmes and projects that will be funded are expected to catalyse about 20 technology projects and train over 100 researchers, scientists, and engineers in the next five years. Under the Maritime R&D Roadmap 2030, MPA and industry stakeholders have jointly outlined green technology capability development areas for the maritime sector in the upcoming decade. These development areas include either piloting or deployment of the following:

i. Electrification of harbour crafts, terminal vehicles and ocean-going vessels;

ii. Biofuel pilot adoption by harbour crafts, terminal vehicles and ocean-going vessels;

iii. Investigate viability of different hydrogens (and hydrogen carriers) as potential zerocarbon fuels for harbour crafts, terminal vehicles and ocean-going vessels;

iv. Validate pathways for shipboard carbon capture, conversion and downstream utilisation (CCSU) for harbour crafts and ocean-going vessels.

In 2022, Singapore estimated that its efforts in maritime decarbonisation are projected to create and upskill a total of 1,200 sustainability-related jobs over the next 10 years.

Carbon awareness, carbon accounting and green financing. MPA will advance green financing in the marine sector and boost capacities in carbon accounting and reporting in order to establish Singapore as a green maritime finance hub. In the maritime sector, MPA has taken the lead in encouraging sustainability reporting. Under the Green Awareness Programme of the Maritime Singapore Green Initiative (MSGI), MPA, in collaboration with SGX and Global Compact Network Singapore (GCNS), released the first sector-specific Maritime Sustainability Reporting Guide in 2019. The Guide offered a workable structure, complete with best practices, for listed and non-listed marine companies to generate high-quality sustainability reports.

In the medium term, MPA aims to develop a maritime sector-specific carbon accounting guide, which will set out a harmonised and accessible carbon measurement system based on common carbon emissions classifications. MPA aims to establish Singapore as a green maritime finance hub, which complement ongoing efforts by MAS in cultivating Singapore as a leading centre for green finance in Asia and globally. MPA will work with MAS, Global Centre for Maritime Decarbonisation (GCMD) and relevant partners to develop a standard taxonomy for sustainable assets and activities in the maritime sector.

Planned net zero journeys of some Singapore transport sector companies

ComfortDelGro (CD SP, BUY, TP: SGD1.65)

As an international mobility operator, it is crucial for CD to deliver clean, low-carbon transport solutions with the aim of reaching net zero emissions reduction targets by 2050. The group has set clear decarbonisation targets for its GHG emissions. In 2022, its emissions reduction target was officially approved by the Science-Based Targets initiative (SBTi) and is consistent with the reductions required to limit global warming to 1.5°C above pre-industrial levels, the most ambitious goal of the Paris Agreement.

CD’s SBTi-validated targets aim for a 54.6% reduction in absolute Scope 1 and Scope 2 GHG emissions from operations, and a 61.2% reduction in absolute Scope 3 Category 3 (fuel- and energy-related activities) GHG emissions by 2032 from the baseline year, 2019. This decarbonisation plan is aligned with the SBTi’s absolute contraction approach. Using sector specific decarbonisation pathway, the plan sets out to transition CD’s fleet to cleaner energy vehicles, optimising operations to reduce resource consumption, and working with likeminded partners to expand sustainable mobility solutions.

While a key part of CD’s decarbonisation strategy is focused on its vehicle fleet transition to cleaner energy vehicles, the group continues to consider the feasibility of using carbon credits to offset its residual emissions.
 

ST Engineering (STE SP, BUY, TP: SGD4.50)

STE started its Task Force on Climate-related Financial Disclosures (TCFD) journey in 2021. The same year, it ensured the inclusion of climate change in its business areas’ strategies and conducted preliminary physical climate risk assessments on significant operating sites globally. In 2021, the group also set a target to reduce Scope 1 and 2 absolute emissions by 50% by 2030 compared to the 2010 base year.

In 2022, it assessed key areas of existing practices against TCFD disclosure requirements and their implications for its business. STE also conducted climate scenario analysis for the material portion of its business and incorporated findings into strategy, decision-making, and the Emerging Risk Management (ERM) approach.

In 2023, STE established a roadmap for expanding its Scope 3 data collection and disclosure. It also implemented an internal shadow carbon price on major capital expenditures and established roadmaps for the development of product carbon footprint of its major products and services.

To mitigrate the effects of climate change, STE’s efforts include:

• Reducing its energy consumption by conducting energy audits and improving production energy efficiency.

• Reducing Scope 1 emissions by: i) Optimising energy efficiency and replacing equipment and fixtures with energy-efficient models when they are due for replacement; and ii) optimising its operational activities, such as delivery runs, engine test cell usage, and electrification of our vehicle fleet.

• Reducing Scope 2 emissions by: i) Installing solar PV systems across its global sites; ii) optimising and re-engineering its production and operational processes; and iii) optimising its facilities through the use of smart control and management systems.

• Reducing Scope 3 emissions by reducing air travel and conducting virtual meetings where possible.

• Preventing contamination of surrounding air by: i) Using air pollution control equipment such as scrubbers; and ii) monitoring and minimising stack emissions and the level of air pollutants.

Singapore Airlines (SIA SP, NR)

SIA’s ESG initiatives are focused around three pillars: i) Achieving net zero carbon emissions by 2050, ii) reducing waste across its operations, and iii) making a positive impact on society. SIA began its sustainability journey in the early 1990s to build environmental awareness. The group published its first sustainability report in 2013, ahead of SGX introducing sustainability reporting on a “comply or explain” basis in Jun 2018. SIA pledged to achieve net zero carbon emissions by 2050 in May 2021 and was the first airline to sign the Global Sustainable Aviation Fuel declaration in Feb 2022, committing to accelerate the development, production, and consumption of SAF. In 2021, SIA also embarked on a one-year joint feasibility study on the SAF supply chain in Singapore with CAAS, Temasek, CAG, and other stakeholders. Following this, SIA undertook another one-year partnership with CAAS and GenZero to operationalise the use of SAF in Singapore in 2022.

SIA believes that multiple decarbonisation pathways are required for it to successfully achieve the ambitious goal of net zero carbon emissions by 2050. These include continued investments in new generation aircraft, achieving higher operational efficiencies, adopting low-carbon technologies such as SAF, and sourcing for high-quality carbon offsets.Today, operating a young and modern fleet of aircraft is the most immediate and direct way in which an airline can reduce its carbon emissions. SIA operates one of the youngest fleets globally with an average age of six years and nine months, significantly lower than the global average of 15 years and eight months. This primarily comprises new generation passenger aircraft such as the Airbus A350 and Boeing 787, which burn up to 25% less fuel than older generation aircraft on similar missions.

SIA has also made a significant investment in its aircraft orderbook, which comprises modern aircraft including the Airbus A350F freighters. SIA will be the launch operator for the A350F, which is projected to use up to 40% less fuel than the Boeing 747-400F freighters on similar missions, and reduce its carbon emissions by an estimated 400,000 tonnes annually.

A critical lever in SIA’s long-term decarbonisation strategy is the adoption of sustainable fuels. As part of a one-year pilot with the CAAS and GenZero, an investment platform wholly owned by Temasek, SIA bought 1,000 tonnes of neat SAF that was blended with refined jet fuel. These were uplifted on SIA and Scoot flights departing from Changi Airport in Jul 2022, the first time that SAF has been used on commercial flights out of Singapore. Under the pilot, 1,000 SAF credits were generated and made available for sale, offering SIA’s corporate customers and freight forwarders an avenue to reduce their carbon footprint while stimulating demand for SAF. More broadly, this pilot aimed to study the operationalisation of SAF through Changi Airport’s hydrant system. It would help to shape future policies and initiatives that could support the scaling up of SAF adoption in Singapore.

A purchase agreement was signed in May 2024 between Neste and SIA for the procurement of 1,000 tonnes of Neste MY Sustainable Aviation Fuel. This will make SIA and Scoot, the two airlines in the group, the first carriers to receive SAF, produced at Neste’s refinery in the country, at Changi Airport. Neste will blend the SAF with conventional jet fuel according to the required safety specifications and deliver the blended jet fuel to Changi Airport's fuel hydrant system in two batches: one in 2Q24 and one in 4Q24. By reaching this milestone, Neste will strengthen its end-to-end SAF supply chain capabilities in Singapore by supplying its SAF to airlines directly for the first time at Changi Airport.

Beyond SAF, SIA continues to pursue fuel productivity and savings initiatives across our engineering, flight, and ground operations. It also encourage customers to join the sustainability journey by offsetting the carbon emissions generated from their flights through the SIA’s Voluntary Carbon Offset Programme.

Recognising the need to conserve the planet’s finite resources, SIA continues to pursue ways to reduce waste across its operations. The group has installed solar panels on the rooftop of its office buildings in Singapore. These solar panels generate almost 25% of its electricity needs for these buildings.

SIA Engineering Company (SIE SP, NR)

SIE committed in Jun 2022 to reach net-zero emissions by 2050. To ensure that it stays on course to achieve this goal, the group has further set an intermediate target to halve its FY19- 20 Scope 1 and 2 emission levels by 2030.

In establishing these carbon emission targets, SIE has identified key pathways that will aid it in meeting its decarbonisation objectives in the near to longer term. It has also embarked on a climate risk assessment study to develop a preliminary understanding of the risks faced by the group based on recommendations from the Task Force on Climate-related Financial Disclosures. This will enable the group to implement appropriate mitigating plans after assessing the impact of these risks.

SIE has undertaken the following measures as a way to shift to sustainable sources of energy. Since Jan 2021, its solar PV systems in Singapore, comprising 8,206 solar panels installed on the roofs of five hangars and the Engine Test Facility, have been generating about 4,500 MWh of clean energy yearly, which is the equivalent of powering 1,000 four-room HDB flats for a year. Its operations in the Philippines have also installed a rooftop solar PV system, comprising 1,260 solar panels which generates about 600 MWh of clean energy yearly.

In support of Singapore’s ambition to green 80% of Singapore’s buildings by 2030,10 SIE plans to achieve the Building and Construction Authority (BCA) Green Mark Certification for all facilities. Two of its hangars have achieved the highest Platinum rating for the Green Mark Certification, including attaining Super Low Energy Building status.

Besides reducing emissions as part of its endeavour to mitigate SIE’s environmental impact, the group is also pursuing the efficient use of water within the business. Through implementation of water saving initiatives, it was able to attain in FY22-23 Water Efficient Building (WEB) certification from Public Utilities Board for three of its hangars and Engine Test facility, thereby accomplishing WEB status for all SIE-owned hangars and buildings.

SATS (SATS SP, NR)

SATS has put together the following environment-related goals as part of its sustainability journey towards net zero:

• Reduce Singapore-based Scope 1 and 2 carbon footprints by 50% by 2030 from the FY20 baseline

• Convert 100% of ground support equipment in the Singapore hub to cleaner energy sources by 2030

• Halve food waste intensity in Singapore operations from the baseline in 2021 by 2028

• Introduce 100% sustainable food packaging by 2030.

SATS’ decarbonisation strategy includes electrification, solarisation, and optimisation. It continues to build and deploy smart infrastructure that reduces its carbon footprint and contributes to a low-carbon economy. The group is committed to converting all available roof spaces across its facilities for solarisation where viable. SATS has the most extensive solar PV system at Changi Airport, generating more than 11,000 MWh of RE in 2022. It aims to push its solarisation efforts to generate up to 15,000 MWh annually in Singapore.

As part of ongoing efforts to expand its electric fleet beyond tractors and forklifts, SATS is working with partners to source for the electric or hybrid variants of ground support equipment (GSE) that suit its needs, and conduct onsite operational trials to assess the performance and compatibility of these vehicles with the unique requirements of airport operations.

SATS’ food waste management systems help to reduce the volume of avoidable waste and unnecessary disposal and improve efficiencies while also creating more sustainable cycles of renewal and regeneration. The group is exploring and implementing initiatives to turn food and material waste into sources of energy, such as using eco-digesters to convert food waste into refuse-derived fuel additives, recycled water, and fertiliser. SATS has initiated a proof-ofconcept trial for an anaerobic digestion system at its catering facility in Singapore. The system is able to convert waste into three different forms of energy: biogas, waste heat, and digestate by-products.

SATS plans to launch its Group Environmental Policy in FY24 to give its stakeholders a better understanding of how it manages the impacts of its business on the environment. The policy outlines its commitment to comply with relevant environmental legislation, regulations and standards and how it continually improves its environmental performance.

To strengthen its operational resilience in a round-the-clock airport environment and mitigate the risk of electrical downtime, SATS is concurrently exploring using renewable diesel as an alternative cleaner energy source. It is working with partners in the aviation ecosystem to aggregate demand to enable a trial in FY24 to ascertain the feasibility of adoption in local conditions. However, the current cost of renewable diesel is relatively steep. Without policy shifts, cost will remain a business challenge for potential adopters to grapple with.

Source: RHB Securities Research - 9 Jul 2024