In terms of the building sector, with government support and collective action from our industry-leading developers, Singapore could lead the effort to scale up the production of lower-emission materials like cement and steel in the region. This kind of investment will be crucial if green building standards are further tightened to require more significant usage of eco-friendly construction materials.
Since most of the production of these important inputs occurs in other countries, it is easy to forget how critical cement and steel are to Singapore’s future physical development. But if collaborative investments in green building materials are made here in the region, it can meaningfully reduce carbon footprints across multiple regional supply chains and significantly boost Asia’s gross domestic product.
CLIMATE WINS ARE ECONOMIC WINS
The stakes are very high. Insurance company Swiss Re estimates that ASEAN GDP could decrease by as much as 30 per cent by 2050 if we don’t take collective action – more than any other region in the world.
This underlines the importance of shared responsibility in our fight against climate change. It’s not just Singapore’s problem; it’s a collective challenge of making hard choices together.
It will always be a tricky balance: If Singapore cuts emissions too drastically or quickly, it risks harming the economy and potentially driving businesses away. On the other hand, if other countries drag their feet, that leaves Singapore vulnerable to climate change’s physical and economic impacts.
But being at the leading edge means it can set the direction and shape industry standards for others to follow. There is potential to create more jobs, encourage innovation in clean technologies, and strengthen Singapore’s global competitiveness and climate reputation.
Today, Singapore’s climate targets and policies only merit a “highly insufficient” rating. Will our go-getting spirit show up on the next report card?
Matthew Dearth is an Associate Professor of Finance (Practice) at Nanyang Technological University, Nanyang Business School and Co-Director of the Centre for Sustainable Finance Innovation.
