Energy in Singapore
What does our future look like?
To achieve net-zero emissions by 2050, one of Singapore’s plans is to shift towards sustainable energy sources. How do they plan to do so, and, more importantly, how can they ensure participation from all stakeholders involved?
In October 2022, the Singapore government announced the goal to achieve net-zero emissions by 2050.
One of the solutions employed was to invest in cleaner energy. Presently, about 40% of Singapore’s total carbon emissions is derived from power generation. Natural gas, the cleanest form of fossil fuel, generates about 95% of Singapore’s total electricity.
In 2020, Singapore announced an investment of SGD 49 million into low-carbon energy solutions.
These solutions are meant to help remove carbon emissions from the air, use power more efficiently, and reduce the amount of natural gas we use.
Globally, one of the most common energy solutions is implementing a carbon tax.
Within ASEAN, Singapore is the first to implement a carbon tax, at SGD 5 (USD 4) per tonne of greenhouse gas emitted. From 2019 to 2021, the government has collected an estimated SGD 194.4 million (approximately USD 144 million) in tax revenue, accounting for around 80% of total emissions.
This carbon tax is predicted to bring in about SGD 1 billion over the next 5 years. The government is planning to use it to fund emissions abatement.
However, the total tax revenue is still much lower compared to other countries. Carbon prices in Singapore are about three times lower than that of Spain, five times lower than that of the UK, and fifteen times lower than that of Norway. Hence, many critics have pushed for an increase in tax amount, to more effectively force corporations into greener operations.
The good news is, Singapore has raised their carbon tax price recently to SGD 25 (USD 19) per tonne of greenhouse gas emitted. This will take effect from 2024 onwards.
However, only raising the carbon tax may not push corporations in the right direction. Most of the time, it merely forces consumers to bear the higher prices of greener products.
Therefore, it is essential to properly assess how many corporations emit and their projected reductions over the next few years, and use this data to make sure the carbon tax makes a meaningful difference.
But apart from the carbon tax, the Singapore government is also looking into alternative sources of energy. One such clean energy source is hydrogen, which does not release carbon dioxide during combustion or electrolysis.
But clean hydrogen is expensive.
In the meantime, low-carbon hydrogen has recently emerged to act as a viable alternative. This form of hydrogen mainly comes from natural gas.
In the near future, Singapore may look towards using low-carbon hydrogen, combined with carbon capture technologies.
Carbon capture technologies basically store emitted carbon, then repurpose the gas into other essential products such as natural minerals or waste-based feedstock.
However, such technologies are still very new, and Singapore struggles with storing carbon, since this storage is usually underground and our geography does not make this easy.
This means it is expensive to store and convert carbon for now.
Achieving net-zero emissions isn’t easy for Singapore. But it is a job that must involve all stakeholders, from governments and big-time corporations to everyday consumers.
Some of the ways we can help are:
Switch to renewable energy providers: Choose companies on the open electricity market that provides renewable energy.
Support responsible companies: Advocate for companies that are transparent about their emissions and dedicated to making progress towards a net-zero future. The Carbon Disclosure Project showcases some of these companies.
Purchase Green Label items: In general, reducing our overall consumption of goods is environmentally helpful. However, when buying is necessary, look for products that have the Green Label, as it indicates that the producers are actively trying to reduce their environmental impact.
Speak to your elected representatives: Write to or meet your elected representatives to share your concerns, and push for them to speak about these issues in Parliament.
Most importantly, read, learn, and understand the situation from a variety of sources. As this conversation concerns our environment, future, and national security, we must stay engaged and updated on the topic.
Reaching net-zero emissions is tough, but we cannot slow down or give up. Let’s all do our part and take gradual, but essential, steps towards a cleaner, greener world.
This story was first published on Kontinentalist’s Instagram on February 7, 2022. The original version was written by Loh Pei Ying and illustrated by Munirah Mansoor, and was created in collaboration with Melissa Low, Research Fellow at the Energy Studies Institute.
Data were primarily collected from the World Bank and cleaned, analysed, and visualised by Kontinentalist. Other information was obtained from secondary online sources, with all of them listed below the data visualisations and in the references list.
Carbon Disclosure Project. “What We Do,” 2024. https://www.cdp.net/en/info/about-us/what-we-do.
Energy Market Authority. “$49 Million Research Fund For Low-Carbon Energy Solutions,” October 26, 2020. https://www.ema.gov.sg/news-events/news/media-releases/2020/49-million-research-fund-for-low-carbon-energy-solutions.
Kellogg Brown & Root Asia Pacific Pte Ltd and Argus Media. “Study of Hydrogen Imports and Downstream Applications for Singapore.” Singapore: National Climate Change Secretariat Singapore, June 25, 2021. https://file.go.gov.sg/studyofhydrogenimportsanddownstreamapplicationsforsingapore.pdf.
National Climate Change Secretariat Singapore. “Carbon Tax,” July 16, 2024. https://www.nccs.gov.sg/singapores-climate-action/mitigation-efforts/carbontax/.
National Climate Change Secretariat Singapore. “Singapore Commits to Achieve Net Zero Emissions by 2050,” October 25, 2022. https://www.nccs.gov.sg/media/press-releases/singapore-commits-to-achieve-net-zero/.
Open Electricity Market. “Market Overview,” 2024. https://www.openelectricitymarket.sg/about/market-overview.
The World Bank. “State and Trends of Carbon Pricing 2021.” Washington, D.C.: World Bank, May 2021. https://documents1.worldbank.org/curated/en/771941622009013802/pdf/State-and-Trends-of-Carbon-Pricing-2021.pdf.
United States Environmental Protection Agency. “Greenhouse Gases Equivalencies Calculator - Calculations and References,” May 17, 2024. https://www.epa.gov/energy/greenhouse-gases-equivalencies-calculator-calculations-and-references.