Knowledge, tech more consequential than funding for developing countries in climate action: SM Teo
Janice Lim
[DUBAI] KNOWLEDGE and technology sharing with developing countries may be more important for them than funding alone in helping to address the impacts they face from climate disasters, Senior Minister and Coordinating Minister for National Security Teo Chee Hean said on Tuesday (Dec 5).
“Our own experience as a developing country is this – that it is what people are prepared to share with us, in terms of knowledge and technology, that has made the most difference for us. It’s not the funding, from our point of view,” said Teo, who was speaking to the media on the sidelines of the United Nations climate change conference in Dubai, the United Arab Emirates.
Teo, who chairs the Inter-Ministerial Committee on Climate Change, was responding to a question on Singapore’s possible contribution to the loss and damage fund.
Approving the operationalisation of the loss and damage fund on the first day of negotiations at COP28 has been hailed as a big win for this year’s climate talks.
The fund would channel money from developed countries responsible for most emissions to developing countries that are typically hit the hardest by climate disasters.
While Singapore is now among the richest countries in the world on a gross domestic product per capita basis, it is still classified as a developing country in international negotiations on climate change.
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This means that Singapore is not automatically considered to be part of the group of developed countries expected to contribute to the fund. In fact, it could be a potential claimant in theory, though details regarding who is eligible to claim and who could contribute financing are still being worked out.
“Let’s be very clear, there are different responsibilities which countries have. (Regarding the) loss and damage fund – developed countries, which have contributed the most to the stock of carbon dioxide and greenhouse gases in the air have a major responsibility for that. And the rest of us will continue to do our part,” Teo said.
For example, Teo pointed out that 150,000 representatives from developing countries have been trained through the Singapore Cooperation Programme, which is an initiative by the government to facilitate the sharing of technical and systems skills that the city-state has learned and acquired over the years.
Singapore is also aiming to improve the bankability of energy transition projects in South-east Asia by preparing to offtake green energy generated from its neighbours, as well as through transition credits, which will be generated when coal-fired power plants are retired early and replaced with clean energy sources, he added.
The Monetary Authority of Singapore (MAS) announced the formation of a coalition on transition credits to develop this new class of carbon credits on Monday.
Besides the loss and damage fund, another sticking point among negotiators at COP28 is whether there will be stronger language in the final decision text on the use of fossil fuels.
When asked about Singapore’s position on whether the use of fossil fuel would be “phased down” versus the more ambitious “phased out”, Teo said that natural gas, which generates 95 per cent of Singapore’s electricity use, is recognised as a transition fuel by many countries, even among some European countries.
“Countries do need energy. They do need power in order to develop and grow. And I think that’s a legitimate interest. In the long term, one can hope to see fossil fuels either done away with, or used in a much more carbon-effective way. But that’s something to be decided on by international negotiations,” said Teo.
He was asked about his thoughts regarding COP28 president Sultan Al Jaber’s reported comments that there was “no science” indicating that a phase-out of fossil fuels is required to limit global warming to 1.5 deg C.
“There is science behind climate change, and eminent scientists from all over the world have come to this conclusion,” said Teo.
As a small city-state, Singapore does not have extensive renewable energy sources, such as solar or wind, and the grid and power infrastructure around the South-east Asian region does not allow Singapore to import enough renewable energy to meet all of its energy needs.
“We are an alternative-energy disadvantaged country. And we have always tried to be as clean as possible. So we gave up coal decades ago, we gave up using fuel oil two or three decades ago,” added Teo.
When asked to respond to comments from MAS’ managing director Ravi Menon that Singapore’s carbon tax should be hiked even higher than the rates currently planned, Teo said that the government will move its carbon tax rate along with international developments and according to their assessment of the negative externalities of the cost of carbon.
“We will look at both price and non-price factors in how different countries adopt the policies towards the externalities,” he added.
Singapore’s carbon tax is currently set at S$5 per tonne of emissions, but will increase to S$25 per tonne from 2024 and to S$45 per tonne between 2026 and 2027. The official guidance is for the tax to land between S$50 and S$80 per tonne by 2030.
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