Mr Teo highlighted that transitioning to clean energy is increasingly cost-effective, with the average levelised cost of solar energy globally now 50 per cent lower than that of fossil fuels.
“This explains why two-thirds of global energy investment in 2024 went to clean energy technologies and infrastructure,” he said.
Solar energy – the most viable source of renewable energy for Singapore – is one of the country’s four key “switches” to achieve its net-zero target by 2050. The other three are natural gas, regional power grids and low-carbon alternatives.
Solar energy will eventually allow Singapore to meet about 10 per cent of its projected electricity demand in 2050, the Energy Market Authority said previously.
Mr Teo also touched on Singapore’s research into adopting nuclear energy.
Prime Minister Lawrence Wong said in his Budget 2025 speech that the country is studying the potential deployment of advanced nuclear energy technologies.
Singapore previously said it plans to build a pool of around 100 nuclear energy and safety experts.
It now has over 40 such experts whose priority in the coming years is to work with its partners to assess the potential for deploying advanced nuclear energy technologies safely in Singapore, said Mr Teo.
ADAPTING LOW-CARBON TECHNOLOGIES
Tapping new and innovative solutions is necessary to ensure Singapore meets its long-term climate goals, Mr Teo said.
The country has also started using biofuels such as sustainable aviation fuel, and is also building capabilities to deploy hydrogen and ammonia, including through small, pilot-scale projects, as it waits for these fuels to become commercially viable at scale, said Mr Teo.
The S$5 billion top up to the Future Energy Fund announced during this year’s Budget speech will make critical infrastructure investments and support solutions, he added.
With the demand for low-carbon goods and services increasing, Singapore can also seek opportunities in the offshore wind market, Mr Teo said.
The global offshore wind market is expected to grow to US$126 billion per annum by 2030.
“Singapore companies in the oil and gas sector are already finding success in pivoting towards providing critical products and services across the offshore wind value chain.”
“MESSY AND UNEVEN” TRANSITION
Singapore on Friday also signed an Implementation Agreement on carbon credits cooperation with Bhutan under Article 6 of the Paris Agreement, said Mr Teo.
This marks Singapore’s first agreement with a carbon-negative country. It had previously signed similar agreements with Papua New Guinea and Ghana, as well as Memorandums of Understanding with more than 15 other countries.
“These win-win agreements will promote the development of carbon mitigation projects in these countries while helping us meet our emissions targets,” he said.
Although Singapore has many goals in place to help it hit its net-zero target, Mr Teo said that keeping global warming below 1.5 degrees Celsius also requires other countries to do their part.
“The transition will not be straightforward, and is likely to be messy and uneven. The reality is that we as a global community will make progress, but may not collectively meet the 1.5 degree goal,” he warned.
As a low-lying island nation, Singapore thus needs to prepare for the reality of rising sea levels, and this could cost about S$100 billion in the coming decades, he said, adding that $5 billion will be put aside to top-up the coastal and flood protection fund.
“We are neither climate zealots nor climate sceptics; we are climate realists. We cannot be sure what other countries will or will not do. But we will secure Singapore’s future – by doing our part to reduce emissions.”
