Resource Sector

Agroforestry companies linked to forest fires causing haze (24 Sep)

As forest fires rage on in Indonesia, connection with Singapore and Malaysia have surfaced. Three Indonesian firms with offices in Singapore have been linked to the haze-belching fires. One company, Hutan Ketapang Industri, sealed off by the Indonesian authorities after fires were discovered on its land, has links to Singapore-based Sampoerna Agri Resources. Three companies with offices in Singapore linked to forest fires causing haze. Based on a report from forestry information website Foresthints, which used data from Indonesian Environment and Forestry Ministry, found haze-causing forest fires in Asia Pulp and Paper (APP) and April concessions.

Sources: The Straits Times, Foresthints

Weak law enforcement allowed repeat of fires (24 Sep)

Weak law enforcement against pulpwood and oil palm companies with the largest burned areas in Indonesia between 2015 and last year has allowed a repeat of forest fires this year, spreading thick haze to its South-east Asian neighbours. Ten palm oil companies with the largest areas of burned land between 2015 and 2018 have received no serious civil or administrative sanctions, new Greenpeace Indonesia mapping analysis revealed. However, the Indonesian government has not revoked a single palm oil licence due to these forest fires, nor has it given any other serious sanctions to these ten companies.

Sources: The Straits Times, Green Peace

Toxic air from fires in Indonesia putting 10m kids at risk (24 Sept)

The fires have been spewing toxic haze over South-east Asia in recent weeks, sparking the closure of schools and airports, with people rushing to buy face masks and seek medical treatment for respiratory ailments. In a press release, the United Nations Children’s Fund (Unicef) said that an estimated 2.4 million children under the age of five live in the areas most affected by the haze and wildfires, which have been ongoing since July this year. Air pollution from Indonesian forest fires is putting nearly 10 million children at risk, the United Nations warned, as scientists said the blazes were releasing vast amounts of greenhouse gases.

Sources: The Straits Times; Today Online

To mitigate climate change, UN member states must redouble efforts: PM Lee (23 Sept)

Member states of the United Nations need to redouble their efforts to mitigate climate change, said Singapore Prime Minister Lee Hsien Loong on Monday, calling climate change the “ultimate global commons challenge”.

“Singapore contributes only 0.11 per cent of global emissions. Nevertheless, we have played our part as responsible global citizens to mitigate climate change. We pledged in Paris to peak our carbon emissions in around 2030. Singapore will do our full part. But however hard we try, Singapore will not be able to stop climate change on our own. Therefore, we are cooperating with other countries on this common endeavor, “Mr Lee said.

“As leaders, we all have the responsibility to do our part to rally our people’s support for sustainable development; to convince and educate our people that these efforts are important, and to safeguard our future, and the futures of our children and grandchildren,” Mr Lee said.

Sources: CNA; MFA

Landmark United in Science report informs Climate Action Summit (22 Sept)

Ahead of UN summit, leading scientists warn climate change ‘hitting harder and sooner’ than forecast. The world’s leading climate science organizations have joined forces to produce a landmark new report for the United Nations Climate Action Summit, underlining the glaring – and growing gaps – between agreed targets to tackle global warming and the actual reality.

The report, United in Science, includes details on the state of the climate and presents trends in the emissions and atmospheric concentrations of main greenhouse gases. It highlights the urgency of fundamental socio-economic transformation in key sectors such as land use and energy in order to avert dangerous global temperature increase with potentially irreversible impacts. It also examines tools to support both mitigation and adaptation.

Sources: UN Environment; UN News

Green Finance

Wall Street’s new battleground is green-bond market worth over US$135b (18-19 Sept)

As banks grapple with a slowdown in traditional engines of growth such as lending and trading, they are seeking to capitalise on a boom in green finance. Global green-bond sales have already exceeded last year’s record of US$135 billion well before the end of 2019. The boom in sales is being driven by corporations and governments raising funds to invest in initiatives to help them meet commitments to cut fossil fuel use, embracing principles of The Paris Agreement on climate change. The biggest users of the market are sovereign borrowers. But corporations are catching up. Companies now dominate overall issuance, even if the individual transactions are smaller in size than sovereign deals.

Sources: Bloomberg, The Business Times

Green bond rise may slow as EU states seek more clout over greenwashing (19 Sept)

As part of global plans to reduce carbon emissions, the European executive commission proposed last year to form an EU-wide classification scheme for sustainable investments, known as a taxonomy. By setting clear standards on what is green, Brussels intends to widen the market in green bonds and securities and address greenwashing – where companies claim environmental credentials they do not deserve. However, the EU plans for a definitive classification may take longer than initially expected as governments from the 28-nation bloc want more power to scrutinize what is green. This move may undercut climate targets and limit sales of green assets.

Sources: Reuters, Yahoo! News

Bangladesh rural poor bear financial burden of climate change: Study (19 Sept)

A study billed as the first of its kind in comparing household spending to public financing found that poor, rural Bangladeshis were shelling out an average US$2 billion annually to address the impact of climate change. The International Institute for Environment and Development (IIED) report noted that this amount is far more than the expenditure of the government and aid agencies, and diverts rural families’ spending away from basic needs. This is because families were using the money to raise their houses above flood levels, and some were even taking out high-interest loans from informal sources, pushing them further into poverty.

Sources: The Business Times, Channel NewsAsia

Geo Energy acquires majority stake in two Indonesia coal mines for US$25 m (23-24 Sept)

Coal producer Geo Energy Resources announced it was acquiring PT Titan Global Energy (TGE) and a 51% stake each in two producing mines, PT Bara Anugrah Sejahtera (BAS) and PT Banjarsari Pribumi (BP), for US$25 million ($34 million). Both mines have been in production since 2012, and produced a total of 3.8 million tonnes of coal in 2018. Geo Energy said it expects the proposed acquisition to be positive and value accretive to the group. Analysts agree that the acquisitions could positively impact the group’s operational and financial metrics. However, market watchers also advise caution, especially due to the bleak outlook of the coal industry.

Sources: The Straits Times, The Business Times, The Edge Singapore