Why climate-based goals are starting to appeal to businesses: Grace Fu

MORE countries and regions are starting to see the appeals of a climate-based approach, with many significant net-zero announcements by nations such as the UK, Japan, China, South Korea, Japan, the US and the European Union bloc.

Making this point on Tuesday was Singapore’s Minister for Sustainability and the Environment Grace Fu, who was the keynote speaker at the Singapore Institute of International Affairs’ (SIIA) dialogue on sustainable world resources.

“Among these developments, there are opportunities for countries to chart path-finding approaches to address climate change and sustainability while balancing economic growth and pandemic recovery,” she said.

As international organisations and governments come forward with more ambitious climate goals, businesses will also have to develop technologies, partnerships and knowledge on sustainability to align with government-set goals and targets. 

“While governments can function as path-finders for a whole-of-nation approach, they alone cannot sustain the momentum,” said Ms Fu. “Governments must partner agri-business and forestry companies, financial institutions, academia, and non-government organisations s to pool resources and co-develop solutions.”

Ms Fu highlighted the key role that South-east Asia and Singapore can play in the sustainability project through carbon credits generation.

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According to the National University of Singapore’s (NUS) Centre for Nature-based Climate Solutions, the preservation of tropical forests alone, such as those abundantly found in South-east Asia, can generate up to US$46 billion worth of carbon credits annually.

By engaging in re-forestation and mangrove rehabilitation programmes, the region stands to be a global producer of carbon credits.

Last week,  DBS, the Singapore Exchange, Standard Chartered and Temasek Holdings announced plans to launch a global marketplace for high-quality carbon credits by the end of this year. The Singapore-headquarted exchange, called Climate Impact X, sets a precedent as a privately-funded market place for carbon credits.

At a separate dialogue  moderated by SIAA chairman Simon Tay after her speech, Ms Fu urged businesses to focus on longer-term issues and sustainability as climate change becomes an inevitable reality. 

A climate-based approach will help the private sector mitigate and adapt to climatic pressures, building climate resilience and ultimately strengthening growth, she said.