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Ethos Issue 7, Jan 2010

Sustainable Development:
Challenges and Opportunities

Tan Yong Soon

Energy
Looking ahead, Singapore needs to manage energy with the same attention we have paid to water. Global concern over climate change will increasingly see the emergence of a carbon-constrained world. The exploitation of traditional energy sources such as oil and gas could be curtailed by various geo-political and economic considerations. Many countries are today exploring the development of alternative energy sources such as hydro, geothermal, wind and solar. Although Singapore is also exploring clean or renewable energy, we face many constraints in exploiting alternative energy sources. Most forms of alternative energy are generated in situ. Unfortunately, Singapore’s wind speed is too low for viability, and we lack access to either hydro or geothermal sources.

Solar energy is the most promising renewable resource for Singapore. However, the cost of solar-generated electricity is still about twice that of grid electricity generated from fossil fuels. Our approach is therefore to invest in solar research and test-bedding, to prepare for wider deployment when the cost of solar electricity falls. For example, the Housing and Development Board is embarking on a S$30 million project to test solar technology on the roofs of our public housing developments island-wide. The National Research Foundation has also allocated S$170 million to build up R&D and manpower capabilities in clean energy. In addition to providing solutions for Singapore’s energy needs, the clean energy sector is projected to add S$1.7 billion to GDP and create 7,000 jobs by 2015.

Deploying renewable energy resources is not the only tool to mitigate energy constraints. For an alternative energy disadvantaged country like Singapore, using energy more efficiently is as, if not more, important. By optimising energy use and conserving energy where we can, we reduce costs and increase overall competitiveness. Energy efficiency is also a key means to reduce greenhouse gas emissions. An International Energy Agency study showed that 11 member countries, which engaged in energy efficiency initiatives, achieved US$1.1 trillion (based on 2006 prices) of energy cost savings in 2006 alone.12

Singapore has ramped up efforts to improve national energy efficiency. Our target is to improve our energy intensity by 35% from 2005 levels, by 2030. As energy use is pervasive, we have adopted a holistic approach to improve energy efficiency across all key sectors of energy use—buildings, households, transport, industry and power generation. Thus far, we have focused on raising awareness of the benefits of energy efficiency, incentivising the adoption of energy efficient practices and building expertise in energy management. Going forward, we will need to do more by setting higher standards and leveraging fiscal tools to encourage energy conservation. For instance, the experiences of countries like Japan and Denmark are instructive: they attained high levels of energy efficiency and conservation through a holistic suite of policies including legislation, which sets minimum standards and requires the monitoring and reporting of energy data, energy taxes and the provision of incentives to kick-start industry development and R&D.

A SUSTAINABLE SINGAPORE
Singapore’s broad strategies to ensure sustainable development for future decades have been set out in the Sustainable Singapore Blueprint,13 which was released in April 2009. To continue to sustain both a dynamic economy and a liveable environment, improving resource efficiency and building capability are key. In addition, we must continue to invest in enhancing our environment and build an environmentally responsible community.

Cities that are good homes for their residents are also attractive to mobile global talent and investments. International quality of life and employment conditions surveys highlight that environmental factors such as air quality and water potability are key considerations for talent. As such, the debate between economic development and environment protection is outdated: cities need to pursue both. Recognising this, leading cities around the world, such as New York and London, have embarked on plans to improve their environment and develop more sustainably.

Singapore must likewise continue to improve our environment, by investing in improvements in our air and water quality, as well as cleanliness and hygiene standards—the fundamental building blocks of a good quality of life— especially as our population and economy continue to grow. While emissions standards must be set, taking into consideration the availability and cost of measures to reduce pollution, the shortterm cost of abatement measures must be compared to the long-term repercussions of environmental degradation and our economic competitiveness.

 

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