Committee of Supply – Head L (Ministry of Sustainability and the Environment)

Chairman, in past speeches, I have called for Singapore to have a higher ambition, leading the way to a green future in spite of our size. To do this, our local industry must innovate and invest in a green transition. But uncertainty over costs, benefits and risks will influence incentives to make the move.

Each sector has a different emissions profile, transition readiness, industry structure and willingness of the end customer to pay. The increase in carbon taxes may compel companies to move, though it must be implemented in just transition. The Government is also exploring and putting in more regulations and standards and benchmarks.

What else can the Government do to encourage local companies to invest, perhaps, ahead of the market?

One key lever is green public procurement. Globally, public sector procurement activities are directly or indirectly responsible for 15% of global greenhouse gas emissions – seven times the amount emitted by the entire aviation industry. They are also heavily concentrated in six industries: defence and security, transportation, waste management services, construction, industrial products and utilities. And often account for a large share of their suppliers' revenues.

Using this buying power, green public procurement can be a major boost for the green economy. Government can set standards for products, services and project activities, certify companies and materials for sustainability, giving extra points for suppliers that are "greener". However, public procurement is complex and highly decentralised and there are competing priorities and socioeconomic considerations.

For example, does HDB prioritise going for the fastest, cheapest way to get a lot of flats out or go for green buildings that have lower embedded emissions and reduce controllable lifecycle emissions? These are complex questions but ones which we must take a position and communicate effectively to all stakeholders as part of the green public procurement transformation.

Other levers for the Government include funding and incentives for innovation and R&D in transformative new technologies, working with industry coalitions to promote decarbonisation across the value chains, upgrading and making available climate and sustainability data and analytics systems, providing incentives for market adoption such as low interest loans and tax credits and boosting understanding expertise and capabilities through education and reskilling programs, the subject of my next cut.

We can also invest in relatable and inspiring public education campaigns to educate Singaporeans on the choices they make. For the right portfolio of measures and pace of implementation, we will need to understand trade-offs, consider cross-sector impact and socioeconomic impact.

How will the Government support local companies that innovate and invest in a green transition ahead of the market? What is the Government doing to activate the market demand and willingness to pay, including among end consumers?

Chairman, I filed the cut but I do not have to write my own speech here as the hon member Koh Lian Pin has very succinctly made the points in his Budget speech.

In a green economy, every worker must have basic and foundational knowledge of climate sustainability alongside functional specific skills and sector‐specific competencies to enable a successful transition of key industries towards sustainable business models and practices. Our IHLs can play a key role in building these capabilities and competencies.

I echo his views. What is the Government doing to reskill and upskill employers, employees and students for managing and capturing value in the green economy?