Singapore is setting up a S$5 billion ($3.7 billion) fund to invest in clean energy technology and infrastructure, aiming for net-zero emissions by 2050.
Deputy Prime Minister Lawrence Wong told parliament on Friday that the so-called Future Energy Fund “puts us in a better position to rapidly develop critical infrastructure and strengthen clean energy security.” Stated.
Singapore’s limited land area has hindered its transition to renewable energy sources such as solar and wind power. Currently, about 95% of the city-state’s electricity comes from natural gas.
The electricity sector accounts for 40% of total emissions, and the government plans to import low-carbon electricity from neighboring countries, which will require investment in undersea cables and grid infrastructure. Hydrogen production, storage, and distribution are also being considered.
“The scale of this so-called transition is enormous and will need to be completed over the next 20 years or so,” Wong said. This is “not a lot of time given the enormity of the mission.”