Singapore's Contribution to Loss and Damage Fund Set Up in COP27

Mr Deputy Speaker, Singapore, as part of the Alliance of Small Island States, along with other developing countries, has long called for the establishment of a Loss and Damage fund. According to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) Working Group II, climate change is already causing widespread loss and damage. Close to half of the world's population live in contexts that are highly vulnerable to climate change. Of note, small island states like Singapore are disproportionately affected by sea level rise and are at risk of submergence by century's end, if nothing is done to prevent it. Such scenarios present an urgent need to channel financial resources towards building adaptive capacity and addressing loss and damage. We were therefore pleased that developed countries agreed to support this call at COP27 last year.

A Transitional Committee has been tasked to make recommendations by COP28 on the details of the fund, taking into consideration the views of all stakeholders. Singapore will engage constructively with the Transitional Committee.

A key guiding principle is that countries that have caused and are most responsible for climate change must take the lead in supporting vulnerable communities to avert, minimise and address climate-related loss and damage. The Paris Agreement, which was ratified by more than 190 countries, including Singapore, also reaffirms this obligation of developed countries to mobilise climate finance for developing countries.

I thank the Minister for her reply and my apologies if I did not catch this, but I am not sure if she mentioned whether Singapore will be making a financial contribution to the Loss and Damage fund under COP27. So, I would like to ask that. And also, if that is going to be the case, what that quantum of that contribution is and if not, what the reasons for not making the contribution are?

Mr Deputy Speaker, I would like to repeat my reply which is: A Transitional Committee has been tasked to make recommendations by COP28 on the details of the fund, taking into consideration the views of all stakeholders. Singapore will engage constructively with the Transitional Committee.

Thank you, Mr Deputy Speaker, Sir. I thank the Minister for her reply. I think the Minister would be aware that I believe, seven countries have made a provisional pledge of I believe, US$275 million and those countries include if I am not wrong Germany, United Kingdom, Austria, Belgium, Canada, and New Zealand. So, to rephrase my question, would Singapore be pledging to contribute to the fund, bearing in mind that the details are still being worked out.

Mr Deputy Speaker, I do not want to repeat my reply but the gist of my reply is that the Loss and Damage fund, is a recognition of the plight of the developing countries, which is a group that Singapore belongs to. We emit 0.1% of global carbon emissions, but are affected by 100% of all the impacts of climate change. So, actually, it is a discussion about developed countries, which Member Leon Perera had referred to, for example, Germany, UK and so on, and a recognition of their responsibility to the developing countries and Singapore belongs to the latter group.

Mr Deputy Speaker, I am not sure the Minister has directly addressed the question I raised. I would like to put it again, will the Government be either now or eventually making a financial contribution to the Loss and Damage fund? Or is it the case that the Government is still thinking about that? And if so, then is it the case that it is not a definite no right now and there could be a financial contribution that the Government makes to this fund eventually.

Mr Deputy Speaker, two points.

First of all, a Transitional Committee will be set up to discuss this issue. What does it include? What are the terms of the fund? Who will be contributing to it? How can developing countries draw from it? All these details have yet to be discussed.

Secondly, Singapore stands on the side of, we belong to the  group of developing countries and therefore stand as a potential claimant from this Loss and Damage fund. But we are already doing our own adaptation. We are coming up with resources. In fact, we are dedicating a significant part of financial resources – we estimated up to S$100 billion dollars and that is diverting a lot of financial resources away from other urgent needs. I think we should really look at what is needed for us to adapt and also, how can we prevent such loss and damage from climate change from impacting our own properties and our own institutions.

Mr Deputy Speaker, my last supplementary question, just to confirm my understanding of the Minister's reply. I believe what she is saying is that, this matter is still being studied, it is not a no, and the Government of Singapore may make a financial contribution to the Loss and Damage found in the future. Is that the correct understanding?

The understanding is that we have not even had a chance to discuss this internationally and we have to decide whether we will contribute or we will claim from this fund.