Resources Sustainability

Indonesia to launch voluntary carbon market (13 Nov)

Indonesia, one of the world’s biggest emitters of greenhouse gases, is planning to launch a voluntary carbon trading scheme that could link to other countries if successful, a senior government official said on Tuesday. The South East Asian nation is lining up carbon trading as one of several policies to cut its fast-growing greenhouse gas emissions, according to Dicky Edwin Hindarto, head of the carbon trade department at Indonesia’s National Council on Climate Change.

Sources: Reuters

Indonesia’s B30 biodiesel plan a boost to domestic palm oil consumption (22 Nov)

In response to the EU’s 2017 decision to phase out palm oil in biofuels, Indonesia mandated a B30 programme (meaning biodiesel with 30% bio-content) to start in 2020. Mdm Andriah Feby Misna, director of bioenergy at the Ministry of Energy and Mineral Resources, told CNA that the ministry is now ready to distribute B30 to selected retailers. The Indonesian government’s decision came amid slowing global demand for palm oil – the archipelago’s main export commodity – exacerbated by Europe’s anti-palm oil rhetoric. Experts believe that producing more biofuel will save the palm industry, and at the same time, reduce imports of fuel. However, the consumption of biofuel has also contributed to the opening of new palm plantations in Indonesia, an unintended effect.

Sources: Channel News Asia

Green Finance

MAS to roll out US$2b green finance Programme (10-11 Nov)

The Monetary Authority of Singapore (MAS) will launch a US$2 billion Green Investments Programme (GIP) to channel funds to public market investment strategies with a strong green focus, and with asset managers who are committed to deepening green finance activities and capabilities in Singapore. As part of GIP, MAS will allocate US$100 million to the Bank for International Settlements’ Green Bond Fund in support of its global green finance initiatives. GIP will help to support Singapore’s financial centre in promoting environmentally sustainable projects and mitigating climate change risks domestically and regionally.

Sources: The Business Times, Channel NewsAsia, The Straits Times, TodayOnline

Temasek sets 2030 target for its portfolio to halve greenhouse gas emissions (13 Nov)

Temasek CEO Mdm Ho Ching announced that Temasek Holdings will report on its usage of water, paper, electricity and air miles starting this financial year, and also aims to halve the greenhouse gas emissions of its entire portfolio by 2030. She was delivering the opening address of the Global Compact Network Singapore Summit under the theme “Reimagining businesses for resilience”. Temasek is pushing clean energy and ESG – environmental, social and governance – initiatives. It has been investing in solutions for a cleaner, cooler and more sustainable world, including plant-based proteins and better fertiliers.

Sources: The Business Times, Eco-Business, The Straits Times

DBS to adopt the Equator Principles in sustainability push (17-18 Nov)

DBS has become the first bank in Singapore and Southeast Asia to adopt the Equator Principles (EPs). These principles are a globally recognised framework for financial institutions to determine, assess and manage environmental and social risk in development projects. This will be on top of the bank’s existing adherence to due diligence processes in accordance with the International Finance Corporation (IFC)’s Performance Standards when assessing large project financing deals.

Sources: The Straits Times, The Business Times, Eco-Business

What is sustainable finance? That’s a US$4 trillion question for investors (22 Nov)

The United Nations estimates a shortfall of as much as US$4 trillion a year in investment needed to help address problems such as climate change. The lack of common standards is one sticking point in filling that gap, along with lack of data on carbon emissions and inadequate collaboration between regulators globally. To ease choked-up fund flows, many market participants say that so-called transition bonds can help develop responsible investing, particularly in Asia. This type of debt would allow companies shifting toward cleaner energy to access capital, and provide a broader range of potential investments. Transition bonds essentially provide a stepping-stone for issuers that might not be ready to sell green or sustainable debt yet.

Sources: Bloomberg, The Straits Times, The Business Times

Social Sustainability

EU-Singapore FTA with strong rules on trade and sustainable development to kick in (Nov 9)

The EU-Singapore Free Trade Agreement (EUSFTA), the first trade agreement between the EU and any ASEAN member-country, will  go into effect on Nov 21 and allow 84 per cent of Singapore exports, including food products and electronics, to enter the EU duty-free, with the rest to follow in the next three to five years. A key feature of this FTA is that it contains strong rules on trade and sustainable development, including the high standards on the protection of labour rights and the environment. Indeed, the extent to which the EUSFTA will translate into benefits for the economy will depend on how effectively companies take advantage of its provisions. Many EU companies have internal policies that require their suppliers and partners to pursue high standards of environmental and social governance. Singapore companies that aspire to do business in, or with, the EU would need to develop strategies and improve their practices in these areas.

Source: The Straits Times (1), The Straits Times (2)

Sex trafficking in Singapore: How changes to the law may protect women duped into prostitution (Nov 10)

 Traffickers will face stiffer punishments with amendments to the Women’s Charter having been debated and passed in Parliament. They will face a maximum jail term of up to seven years and a maximum fine of S$100,000 – a ten-fold increase from the current amount.

Source: CNA

Sanitation Workers: Light at the End of the Tunnel? (Nov 19)

Sanitation workers form an integral and fundamental part of the service chain for both public and private sectors yet they often face extreme health hazards and safety risks on the labour-intensive job. In many developing countries, they are informal workers who find themselves in financially precarious situations, subject to weak legal protection, missing or weak standard operating procedures, and weak enforcement and oversight of laws and policies protecting their rights and their health. With a lack of visibility in society, sanitation workers can be stigmatized, marginalized and ignored.

To draw attention to this neglected issue, the International Labour Organization, WaterAid, the World Health Organization and the World Bank authored and released a report recommending taking steps that systemically mitigate occupational health and safety hazards along the sanitation service chain titled Health, Safety and Dignity of Sanitation Workers – An Initial Assessment. The report was released ahead of World Toilet Day, a day about inspiring action to tackle the global sanitation crisis in which 4.2 billion people still live without safely managed sanitation and 673 million among them still practice open defecation.

Source: World Bank