Singapore's government needs to consider the cost of "carbon neutrality" and it will not be achieved overnight, but it will lead some international systems for green development. China also needs to create low-carbon international standards that fit its own development.
According to a front-page report by Singapore's official media, The Straits Times, the process of decarbonization certainly involves some costs, but Singapore will not pursue its goals at any cost.
Dr. Tan See Leng, Minister of Manpower in charge of energy and technology affairs, delivered the above views at the 17th Singapore Economic Policy Forum on Friday (October 24). The forum was jointly organized by the Singapore Economic Society and the National University of Singapore.
Dr. Tan See Leng pointed out that in the process of promoting decarbonization, Singapore must strike a careful balance between achieving growth ambitions, ensuring energy security, and maintaining affordability of prices. The process of decarbonization must not come at the cost of livelihoods and system safety.
He emphasized that if major world economies weaken their climate commitments while Singapore proceeds alone, it would undermine the competitiveness of local enterprises.
For example, how to reasonably price carbon emissions is a major challenge in the implementation of carbon tax measures. If the pricing is too low, it will affect the decarbonization process; conversely, if the pricing is too high, it could harm enterprise competitiveness.
On the other hand, reduced investment in low-carbon technologies may also hinder the country's decarbonization plans. Because forward-looking technologies often require more time to achieve commercialization and local deployment.
In his speech, Dr. Tan See Leng cited the anecdote from the classic Chinese novel "Romance of the Three Kingdoms" about Zhuge Liang's saying "those who understand the times are the outstanding ones," emphasizing the need to "understand the situation and adhere to one's beliefs" during the energy transition.
He pointed out that in the context of global turbulence and uncertainty in energy transitions, Singapore must remain pragmatic, flexible, and clear-minded, avoiding excessive idealism, and strike a balance between the costs and benefits of decarbonization. Singapore's decarbonization actions should always be guided by national principles and interests.
Dr. Tan See Leng also revealed that the government will promote Singapore's energy transition in three areas.
Firstly, providing guidance for the construction of new generation power plants. Dr. Tan See Leng stated that the liberalized electricity market inevitably experiences periods of oversupply or undersupply.
To ensure stable electricity supply, the Energy Market Authority (EMA) has been implementing centralized power generation planning since 2023, forecasting electricity demand and available capacity over a ten-year rolling cycle, and incorporating new sources such as solar energy and electricity imports. When there is a shortage of supply, the authorities will recruit private institutions to build and operate new power facilities.
Secondly, playing a key role in reducing energy transition risks. He said that low-carbon energy projects face higher geopolitical, technological, safety, and business risks, making it difficult for private institutions to provide full financing for these projects. Public capital can serve as a source of core capital, catalyzing new low-carbon energy projects and attracting private institutional investments.
Thirdly, the government will take the lead in developing promising technologies. He revealed that the authorities are considering narrowing the funding gap for low-carbon energy technologies in the next phase of the Research, Innovation, and Enterprise (RIE) plan, including the consideration of establishing a "Grand Challenge" to support and promote relevant research and development and pilot projects.
Original article: www.toutiao.com/article/1847012060871820/
Statement: This article represents the views of the author.