Keynote Speech by Singapore's Ambassador for Climate Action at AmChamSG Sustainability Forum

17 JUN 2025

KEYNOTE ADDRESS AT AMERICAN CHAMBER SINGAPORE SUSTAINABILITY FORUM AMCHAMSG HUB, SHAW CENTRE, SINGAPORE, 17 JUNE 2025

Why Climate Friendly is Business Friendly 

Good morning, ladies and gentlemen.  

Two of the most frequent questions I get these days go something like this: 

  • Given the sharp political pushback against the climate agenda in the United States, does it make sense for countries and companies to persist in decarbonisation efforts? 

  • Against the backdrop of rising economic uncertainty, trade frictions, and geopolitical conflicts, is it not prudent for countries and companies to take a pause on their climate and sustainability efforts? 

There is an assumption underlying these questions:  that investing in sustainability is a cost burden that we can put off or minimise when times are bad.  This assumption may seem to make sense but is ultimately flawed. 

Let me elaborate why being climate friendly is also business friendly and why businesses must continue with their sustainability efforts. 

  • One, major economies are pressing on with climate action notwithstanding the US. 

  • Two, the global energy mix is shifting decisively towards renewables. 

  • Three, policy and business measures are driving decarbonisation along supply chains. 

MAJOR ECONOMIES PRESSING ON WITH CLIMATE ACTION 

First, major economies are pressing on with climate action. 

To be sure, the news coming out of the United States is not good for the planet. 

  • Proposals in the new “Big Beautiful Bill” include phasing out clean energy tax credits-- notably the $7,500 EV consumer tax credit-- while scaling back support for solar, wind, hydrogen hubs, and clean manufacturing. 

  • The federal government has lowered emissions standards for vehicles and has proposed lowering them for gas and coal fired power plants as well. 

But these developments are only part of the story.  

Despite stories about political backsliding, climate action remains a priority and decarbonisation continues in many parts of the world.  

In Europe, the picture is more nuanced than the headlines suggest.  

  • Yes, environmental concerns have taken a back seat somewhat, amid voters’ anxieties about the higher cost of living, the effects of trade tariffs, and the ongoing war in Ukraine. 

    • But according to a 2024 survey, 9 in 10 Europeans agree that climate action is needed1.   The real issue is that many citizens lack confidence in their governments' ability to implement effective and fair climate policies. 

  • Yes, the EU has proposed easing its sustainability reporting requirements, excluding from scope about 80% of companies previously included.  

    • But these adjustments are being made relative to extremely strict rules under the original Corporate Sustainability Reporting Directive, which had required detailed subsidiary reporting.  By focusing on larger companies, the EU is seeking to balance ambition with practical implementation. 

  • Actions speak louder than words. The EU is almost on track to meet its ambitious 2030 climate targets. 

    • Its greenhouse gas emissions cuts are just 1% shy of its 55% reduction target relative to 1990 levels.  

Canada, Australia, and the UK have reaffirmed their climate commitments. 

  • In Canada, a new government, re-elected on a climate platform, is retaining the industrial carbon tax and capping oil and gas emissions, while scaling back carbon taxes on consumers that proved less effective not to mention unpopular. 

  • In Australia, voters have re-elected a government with a 2030 target of 82% renewable electricity, rejecting calls to abandon climate policies. 

  • The UK has raised the bar with its latest target, committing to cut greenhouse gas emissions by 81% by 2035 compared to 1990 levels: a significant step-up in ambition compared to previous pledges. 

Japan has launched a bold Green Transformation (GX) programme.  

  • The government will issue GX bonds to fund US$133 billion of decarbonisation investments over the next decade. 

  • From FY2026, a mandatory Emissions Trading System will cover up to 60% of Japan’s carbon emissions, and from FY2028 a carbon surcharge on fossil fuels. 

  • From FY2033, emission allowances for the power sector will be auctioned. 

China is rapidly emerging as a leader in climate action and the green economy. 

  • China sees the green economy as an important driver of economic growth. 

    • Renewable energy, led by electric vehicles, batteries, and solar, accounted for one-quarter of China’s GDP growth last year. 

  • It is pressing ahead with its transition, undaunted by the external environment. 

    • In April this year, President Xi Jin Ping declared: “Regardless of changes in the international landscape, China’s efforts to combat climate change will not slow down …” 

  • Words are being matched by actions. 

    • In recent years, China has been building as much renewable energy capacity as the rest of the world put together. 

    • China dominates the EV market, accounting for 65% of global EV sales in 2024.2 

  • I spent five days in Shanghai recently and saw first-hand the concerted efforts that local governments, businesses, and research institutes are making in areas ranging from renewables and hydrogen to carbon capture and biofuels. 

Singapore is staying the course on climate action.  

  • We have committed to reducing emissions to between 45 to 50 million tonnes of carbon dioxide equivalent by 2035 – a significant step toward our 2050 net-zero target. 

  • We announced our 2035 target in February this year, not long after the US withdrew from the Paris Agreement. 

  • We were cognisant of the short-term political and economic impediments globally. 

  • But we felt it was necessary to press on with our efforts, to invest what is necessary for our long-term future in a carbon-constrained and climate-impaired world. 

We are taking concrete steps to meet our net-zero goal. 

  • We will raise the carbon tax to S$50–S$80 per ton by 2030, with revenues recycled to support businesses in their decarbonisation efforts. 

  • We plan to import 6 gigawatts of low-carbon electricity by 2035 and aim to meet one-third of our energy needs with clean energy. 

  • We aim to have 80% of our buildings certified under the Green Mark scheme by 2030. 

  • We will shift our cars away from the internal combustion engine to electric or hybrid by 2040. 

  • We are exploring the use of hydrogen for power generation and piloting carbon capture technologies at waste-to-energy plants. 

GLOBAL ENERGY MIX SHIFTING TOWARDS RENEWABLES 

A second reason businesses should continue to focus on sustainability is the decisive shift in global energy mix towards renewables. 

Solar and wind are now the world’s largest source of new electricity3. 

  • The share of renewables in global electricity generation reached 30% in 20234. 

  • Renewable energy is now cheaper than fossil fuel energy in many parts of the world. 

    • In 2010, the levelised cost of electricity from solar PV was three times that of the weighted average of fossil fuel-fired alternatives.  Today, it is 50% cheaper. 

  • Investment in clean energy globally hit US$2 trillion in 2024 - nearly double the amount for fossil fuels5. 

    • The United States has seen record-breaking growth in renewables, despite political headwinds6. 

The shift towards electric vehicles is gathering pace across the world. 

  • Lithium-ion battery storage costs have dropped nearly 90% since 20107. 

  • EV sales are surging in many countries.  

    • Over 17 million electric cars were sold worldwide in 2024— accounting for more than 20% of all car sales, up from just 2% in 20188. 

Companies looking to the future are investing across the renewables value chain. 

  • Vestas Wind Systems, a Danish company, is a leader in manufacturing wind turbines, installing more than 150GW of wind turbines in over 80 countries.  It is investing heavily in wind technology to reduce costs and improve efficiency. 

  • Enphase Energy, a US company, is a leader in solar microinverter technology. It continues to expand globally and invest in new product development to maintain its leadership in smart energy technology. 

  • Closer to home, Sembcorp Industries will invest $10.5 billion, or 75% of its total capital spending, in renewable energy through 20289. 

POLICY AND BUSINESS MEASURES DRIVING DECARBONISATION 

The third reason why businesses must stay focused on sustainability is that policy and business measures are driving decarbonisation across supply chains globally. 

Carbon prices are slowly but surely becoming more common and more pervasive. 

  • From 2026, the EU’s Carbon Border Adjustment Mechanism (CBAM) will require importers to pay for carbon emissions generated in the production of goods they import, starting with steel, cement, and aluminium10.  

  • Companies that decarbonise will have a competitive edge when exporting to the EU. 

  • It’s not just the EU. South Korea’s national carbon market - one of Asia’s most comprehensive - covers over 70% of national emissions and is pushing its emissions intensive sectors toward cleaner production11.  

Supply chains are facing stricter environmental scrutiny. 

  • The EU now requires companies to monitor and report on their supply chains’ environmental impacts12.  

    • Exporters to the EU, especially from Asia, must strengthen traceability and compliance or risk losing market access. 

  • It’s not just countries.  Global MNCs are also placing requirements on their supply chains. 

    • Apple requires its suppliers - covering 95% of its direct manufacturing - to use 100% renewable energy by 203013.  

ECONOMIC OPPORTUNITIES IN THE GREEN TRANSITION 

Let me highlight three areas of opportunity for US companies to invest in the green transition in Singapore and Southeast Asia. 

First, green finance and carbon infrastructure. 

  • Singapore’s position as the region’s leading financial hub provides unmatched opportunities in green and transition finance. 

  • Over US$8 billion of private green investment flowed into Southeast Asia in 2024, with the bulk of it anchored in Singapore and Malaysia14.  

  • US firms can help design innovative financial products, anchor credible carbon markets, and catalyse regional green capital flows 

Second, clean energy and transition technologies. 

  • According to Bain, the ASEAN region is expected to unlock US$120 billion in clean economy opportunities by 2030, from solar to EVs to bioenergy15. 

  • Singapore is committing S$10 billion through the Future Energy Fund to accelerate the deployment of clean energy technology. 

  • US firms with capabilities in clean tech, grid infrastructure, and battery storage will find demand for new projects in Singapore and scalable models across ASEAN. 

 Third, agri-tech and sustainable food systems. 

  • Singapore is a growing regional hub for agri-processing and bioeconomy innovation. 

  • Temasek Life Sciences Laboratory has been successfully piloting next-generation, low-emission rice varieties in the region.16 There are commercial opportunities if they can be scaled across Southeast Asia. 

  • Neste has invested S$2.3 billion to expand its biofuel refining plant in Singapore, which transforms agricultural waste and residue feedstocks from across Southeast Asia into sustainable aviation fuel. 

  • US firms with expertise in agri-tech, supply chain traceability, and sustainable food systems can pilot solutions in Singapore, then scale them across the region to meet the growing demand for resilient, climate-adapted food systems. 

CONCLUSION 

Let me conclude. 

The trade-off in climate efforts is not between sustainability and competitiveness but between short-term competitiveness and long-term competitiveness.   

Investing in climate action may seem to dent short-term competitiveness but is critical for long-term competitiveness. 

  • It is not unlike other investment decisions – such as investing in human capital or digitalisation. 

  • When the economic environment is uncertain, costs are rising, and profits are under pressure, we do not stop investing in our people or in technology. 

  • Sure, to save costs, we may scale back some training programmes or defer some IT projects.  But there can be no change in overall direction – people and technology are strategic priorities: for countries as well as companies. 

Similarly, sustainability should be seen as a strategic national and business priority.   

  • Climate change is no longer a prediction but a current reality that will only get worse. 

  • Decarbonisation is therefore not a choice but a necessity: 

    • it is not a cost burden but an investment in future growth; 

    • not a constraint on economic opportunity but a source of competitive advantage. 

And lest we forget, it is also the right thing to do – for our people and our planet. 

1 Bruegel. (2025, February 25). Europeans still want climate action, but don’t trust governments to deliver. Retrieved from https://www.bruegel.org/policy-brief/europeans-still-want-climate-action-dont-trust-governments-deliver

2 Rhodium Group. (2025, June 4). Transatlantic Clean Investment Monitor: A Perspective on Electric Vehicles. Retrieved from https://rhg.com/research/transatlantic-clean-investment-monitor-a-perspective-on-electric-vehicles

3 International Energy Agency. (2025, March). Global Energy Review 2025. Retrieved from https://www.iea.org/reports/global-energy-review-2025/coal

4 International Energy Agency. (2024, October). Renewables 2024. Retrieved from https://www.iea.org/reports/renewables-2024/global-overview

5 International Energy Agency. (2024, June). World Energy Investment 2024. Retrieved from https://www.iea.org/reports/world-energy-investment-2024/overview-and-key-findings

6 The Guardian. (2025, Feb 12). Record-breaking growth in renewable energy in US threatened by Trump. Retrieved from https://www.theguardian.com/us-news/2025/feb/12/renewable-energy-growth-trump

7 International Energy Agency. (2024). Batteries and Secure Energy Transition. Retrieved from https://www.iea.org/reports/batteries-and-secure-energy-transitions/status-of-battery-demand-and-supply 

8 International Energy Agency. (2025). Global EV Outlook 2025. Retrieved from  https://www.iea.org/reports/global-ev-outlook-2025/trends-in-electric-car-markets-2

9 Straits Times. (2024, November 11). Sembcorp to invest $10.5 billion in renewable energy over next 5 years. Retrieved from https://www.straitstimes.com/business/sembcorp-to-invest-105-billion-in-renewable-energy-over-next-5-years

10 European Commission. (2025, March 28). Carbon Border Adjustment Mechanism. Retrieved from https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en

11 International Carbon Action Partnership. (2024). Korea Emissions Trading System (K-ETS). Retrieved from https://icapcarbonaction.com/en/ets/korea-emissions-trading-system-k-ets

12 European Commission. (2024, July 25). Corporate sustainability due diligence. Retrieved from https://commission.europa.eu/business-economy-euro/doing-business-eu/sustainability-due-diligence-responsible-business/corporate-sustainability-due-diligence_en

13 Apple. (2024, April 17). Apple ramps up investment in clean energy and water around the world. Retrieved from https://www.apple.com/newsroom/2024/04/apple-ramps-up-investment-in-clean-energy-and-water-around-the-world/

14 2025 Southeast Asia Green Economy Report. (2025, May 6). Retrieved from: https://www.bain.com/insights/southeast-asias-green-economy-2025

15 2025 Southeast Asia Green Economy Report. (2025, May 6). Retrieved from: https://www.bain.com/insights/southeast-asias-green-economy-2025/

16 Temasek Trust. (2025, Jan 24). Retrieved from: https://www.temasektrust.org.sg/newsroom/tll-decarbonising-rice-gaea-award