SINGAPORE – Breakthroughs in three areas – the adoption of low-carbon technologies, redirecting of finance to climate action, and greater international cooperation – will be needed for countries to achieve net-zero emissions by 2050.

This timeline will be crucial in helping the world avert the catastrophic impacts of climate change, and limit global warming to 1.5 deg C, said Minister for Sustainability and the Environment Grace Fu.

Speaking on Tuesday at the annual Ecosperity Week conference organised by investment company Temasek, Ms Fu highlighted how breakthroughs in these areas can take shape, and the ways in which Singapore is catalysing the process.

For instance, low-carbon technologies such as hydrogen offer a potential alternative to carbon-intensive fossil fuels, and can be used in maritime, aviation and the heavy industries, said Ms Fu.
 
However, increased innovation and adoption would be needed in this space as technology and supply chains are still nascent, and large-scale deployment has yet to be demonstrated, she noted.

Singapore plans to have hydrogen supply 50 per cent of its power needs by 2050, and is actively building capabilities for hydrogen innovation, and various research and development collaborations with industry players.

More global capital also has to be directed to finance climate action, said Ms Fu. 

She pointed to a report by global management consulting company McKinsey which found that getting to net zero by 2050 would require US$9.2 trillion (S$12.4 trillion) of climate investments a year globally, but the world is coming up short by about one-third, or US$3.5 trillion a year. 

“Public funds alone cannot meet this shortfall, while the risk-return profile of many green projects is not attractive enough for private funds,” she noted.

One possible breakthrough that could address this shortfall would be to increase the scale of blended finance – which refers to public, multilateral or philanthropic funding that helps to catalyse private investments for green projects.

Developing credible carbon markets could also help to scale up decarbonisation projects around the world, said Ms Fu.

For instance, carbon credits generated from reforesting projects can help local communities better adapt to climate change, create economic opportunities and jobs for these local communities, and support biodiversity.

Ms Fu noted that Singapore has concluded negotiations with Ghana on an agreement that would set out the criteria and processes for carbon credit project development and trading.

This will allow carbon credits generated in Ghana to be purchased by companies in Singapore to offset part of their carbon emissions, to reduce the amount of carbon tax they have to pay.

Similar agreements are in the works with countries such as Bhutan, Cambodia, Colombia, Vietnam and Peru. 

This underscores the need for greater international cooperation, which would help mobilise technology and finance in developing countries to enable greater ambition while supporting sustainable development, Ms Fu noted. 

The Ecosperity Week conference, with the theme Breakthroughs For Net Zero, seeks to bring together industry players, investors and policymakers to collectively address technology, policy and finance levers to bring about the transformational breakthroughs needed for the planet, businesses and communities, said Temasek.

The three-day event, which ends on Thursday, is held at the Sands Expo and Convention Centre. It will host leaders such as Indonesian President Joko Widodo, Glasgow Financial Alliance for Net Zero co-chair Mark Carney, and investment company BlackRock vice-chairman Philipp Hildebrand.