Singapore contributes to achieving a sustainable future by taking strong actions against global challenges like climate change. Singapore has set a goal of attaining net-zero emissions of greenhouse gases by 2050.
To show Singapore’s deep commitment to environmental consciousness and sustainability, one can participate in the Green Plan and help it realise its long-term objective of accomplishing Singapore net zero emissions by 2050.
The UN body, the Intergovernmental Panel on Climate Change (IPCC), is entrusted with monitoring climate change through regular assessments. IPCC encourages and compels governments, industrial sectors, other organisations, and individuals to cooperate in reducing greenhouse gas (GHG) emissions by effectively dealing with global warming and reversing it to the pre-industrial level of 1.50 degrees Celsius to attain the net-zero level goal.
The process of reducing or checking greenhouse gas emissions, like carbon dioxide, into the atmosphere is called “Decarbonization”. Letting out carbon dioxide, also known as CO2, is the prime reason for this issue. Decarbonization also has to do with reducing other dangerous gases, including methane (CH4), nitrous oxide (N2O), and ozone (O3).
Regardless of the sector, sphere, or region, they are functioning in, industries are also accountable for effectively decreasing the levels of carbon dioxide and other harmful gases. The prominent industrial sectors connected with Decarbonization are electricity generation, steel, transportation, and agriculture.
Decarbonization can be achieved by switching from diesel or petrol vehicles to electric vehicles (EVs), switching to renewable energy sources, and using carbon capture and storage or (CCS) technologies to mitigate CO2 emissions.
Furthermore, $3.5 trillion in investments should be made annually to have more renewable energy sources to produce clean energy, and nearly every sector of the economy would need more investments to achieve the target.
Role of DBS in Helping Singapore Attain Net Zero Emissions
DBS is the first financial institution in Southeast Asia to be a part of the Net-Zero Banking Alliance (NZBA), Singapore and to publish a comprehensive set of emission reduction targets for its Scope 3 funded emissions. With these reduction goals, the bank could effectively distribute money to low-carbon alternatives rather than actions with large carbon footprints.
Here are some major industrial sectors DBS has chosen to help it meet its Decarbonization objectives. They include oil and gas, aviation, steel, power, automotive, shipping, and real estate.
In addition to these, two other industries, such as Agribusiness and Food & Chemicals, have received recognition for laying the groundwork for emissions reduction. The framing of the seven Decarbonization objectives was based on the International Energy Agency’s Net Zero Emissions (NZE) by 2050 scenario.
Besides, DBS has successfully advanced SGD 480 million in transition finance in 2022 through use-of-proceeds loans and sustainability-linked loans.
For instance, DBS Bank supports India’s plans to double its capacity of ethanol distillation and blend up to 20% ethanol well into petrol. A major producer of sugar and renewable energy in India received 1,750 million rupees as a transition loan from DBS, the country’s first foreign bank. The funding helped expand its sustainable bioethanol sector by using the money to realize the general Decarbonization strategy of the company.
DBS, Singapore Exchange, Standard Chartered, and Temasek collaborated to create Climate Impact X (CIX), a global market for trading and exchanging high-quality carbon credits. They have joined numerous well-known working groups, as well as regional forums as the process.
Companies can spend money on greener products and services and seek the latest sustainability solutions. It will help speed up Singapore’s economic shift to net-zero emissions, thereby giving promising opportunities.
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