Resource Sector

Indonesia forest fires surge and Singapore’s air quality may enter ‘unhealthy’ range (12 Sept)

The number of blazes in Indonesia’s rainforests has jumped sharply, satellite data showed on Thursday (Sept 12), spreading haze across South-east Asia. Indonesia’s forest fires are an annual problem but have been worsened this year by particularly dry weather, and in recent days sent toxic haze floating over Malaysia and triggered a diplomatic row. In the southern ASEAN region, the weather is expected to remain dry over many areas, and the prevailing winds are forecast to continue blowing from the southeast or southwest. The hotspots activities in Sumatra and Kalimantan are expected to persist, and hazy conditions over the region may continue.

Sources: The Straits Times, Channel NewsAsia, ASMC

Amazon fires: Seven countries sign forest protection pact (9 Sept)

The Amazon is a vital carbon store that slows down the pace of global warming, and 60% of it is located in Brazil. More than 80,000 fires have broken out in the Amazon rainforest this year. President Bolsonaro has drawn intense domestic and international criticism for failing to protect the region. The corporations and financial institutions that back the businesses Bolsonaro beckons drive this deforestation and destruction, and will generate tremendous short-term profits at the expense of the Amazon. Seven South American countries have agreed measures to protect the Amazon river basin, amid global concern over massive fires in the world’s largest tropical forest. Bolivia, Brazil, Colombia, Ecuador, Guyana, Peru and Suriname signed a pact, setting up a disaster response network and satellite monitoring. At a summit in Colombia, they also agreed to work on reforestation.

Sources: BBC, CNN

Climate change in Singapore and S$100b for climate change measures

During his recent National Day Rally speech, Prime Minister Lee Hsien Loong highlighted that the defence against climate change must be given as much emphasis as the military defence provided by the Singapore Armed Forces because climate change threatens the existence of our nation in the 21st century. The Government could fund the S$100 billion cost of climate change protection measures using a combination of borrowing, reserves and ministry budgets, by Second Minister for Finance Lawrence Wong. For Singapore, the warming was twice as fast because land heats up more easily than the sea and urbanisation replaced self-cooling vegetation with heat-retaining concrete buildings and bitumen roads. This means that Singaporeans are more at risk than ever from heat illnesses, like heat exhaustion.

Sources: CNA, CNA

The Massive Cost of Not Adapting to Climate Change (9 Sept)

The world must invest $1.8 trillion by 2030 to prepare for the effects of global warming. A new report, by the Global Commission on Adaptation, said the payoff could be four times that. The report, led by Microsoft Corp. founder Bill Gates, former UN Secretary General Ban Ki-moon and World Bank Chief Executive Officer Kristalina Georgieva, concluded that $1.8 trillion in investment by 2030 concentrated in five categories—weather warning systems, infrastructure, dry-land farming, mangrove protection and water management—would yield $7.1 trillion in benefits.

Sources: Bloomberg, UN Environment

Green Finance

China’s ‘Belt and Road’ risks Paris climate goals: Analysis (2 Sept)

Tsinghua University, Vivid Economics and ClimateWorks Foundation jointly released a report Decarbonising the Belt and Road: A Green Finance Roadmap. The report found that the Belt and Road initiative has a significant risk of producing enough greenhouse gas emissions to derail the goals of the Paris Agreement. The 126 BRI countries – excluding China – currently contribute 28 percent of manmade emissions. Of the BRI energy projects in the pipeline, over a quarter are expected to be coal powered – and coal is the single biggest contributor to climate change. The report concluded that greening BRI financing is key to avoid climate-damaging development in countries which are already experiencing the consequences of global warming.

Sources: CNA, Eco-Business

Agricultural Bank of China’s Singapore branch gets US$200m green club loan facility (3 Sept)

The Agricultural Bank of China’s (ABC) Singapore branch secured a US$200 million green loan, the first tranche of a US$465 million club loan facility. The green club loan facility is the first established under the branch’s sustainable financing framework which was jointly developed by United Overseas Bank (UOB) and BNP Paribas. The proceeds of the loan will be channeled to green projects which comply with the green financing principles, guidelines and standards referenced in the framework. The framework offers guidelines for ABC Singapore branch to provide green, social or sustainable financing to clients or projects in areas such as renewable energy, green buildings and access to “essential services” such as public transport and healthcare.

Sources: The Business Times, The Asset, finews.asia

CDL receives S$250 m sustainability-linked loan from DBS (4 Sept)

City Developments Limited (CDL) has obtained a S$250 million three-year revolving credit facility from DBS Bank to promote the United Nations (UN) Sustainable Development Goals (SDGs). A green financing concept focused on innovations, this SDG Innovation Loan is slated for general working capital and corporate funding. CDL will be eligible for a discount on the loan’s interest rate when it achieves sustainability-related performance targets, mutually agreed with DBS, on innovations that contribute positively to the UN goals. The loan will support SDGs nine, 11 and 13 which are namely industry, innovation and infrastructure; sustainable cities and communities; as well as climate action.

Sources: The Straits Times, The Business Times