Singapore’s MOF to allocate S$700 million from Green Bond proceeds to Jurong Region Line and Cross Island Line

SINGAPORE: The Ministry of Finance has released its inaugural Singapore Green Bond Report, shedding light on the allocation and anticipated environmental impact of the green bond proceeds for the Financial Year 2022.

One of the central disclosures from the report is the allocation of S$700 million towards the development of the Jurong Region Line (JRL) and Cross Island Line (CRL).

These public transport initiatives are not only crucial to Singapore’s infrastructural development but also represent a significant stride in the nation’s green commitment.

When both lines are in full operation, they are projected to result in carbon emission reductions equivalent to removing 22,000 cars from the country’s roads annually.

To ensure transparency and maintain public trust, a limited assurance engagement was conducted by the internationally recognized firm, PricewaterhouseCoopers LLP. Their assessment confirmed the allocation of these proceeds up to 31 March 2023.

Speaking on the occasion, Ms Indranee Rajah, the Second Minister for Finance and National Development, and Chair of the Green Bond Steering Committee, underlined the government’s commitment to green initiatives.

“The Government is committed to a credible, high-quality framework for green bond issuance, and reporting is a key part of this endeavour,” she said.

In August 2022, the Singapore Government marked a significant milestone by issuing its inaugural S$2.4 billion sovereign green bond, named the Green SGS (Infrastructure) bond.

As of 31 March 2023, 30% of this amount (S$0.7 billion) has been allocated to JRL and CRL. The Ministry anticipates that the remaining funds will be fully allocated to these rail lines by the end of FY2024.

Beyond the infrastructural advantages, the expansion of Singapore’s electric rail network is also a nod to promoting eco-friendly commuting habits.

This aligns with the “Sustainable Living” pillar of the Singapore Green Plan 2030, which envisions achieving a 75% modal share for mass public transport by 2030, thus paving the way to drastically reduce land transport emissions by 2050.

To determine the tangible environmental impact of these bond allocations, the Ministry engaged Morningstar Sustainalytics, a notable ESG research and analytics firm.

Their findings suggest that once JRL and CRL are fully functional, there will be an annual carbon savings ranging between 100,000 and 120,000 tonnes of CO2-equivalent.

For those interested in a more detailed exploration of these findings and future projections, the full Singapore Green Bond Report is available for public viewing at https://go.gov.sg/greenbonds.

As part of its continued commitment to transparency and to keep the public informed, MOF will provide annual reports in accordance with the Singapore Green Bond Framework. This will cover allocation details, environmental impacts, and any material changes.