SINGAPORE – To finance the Republic’s green energy transition and ensure the stability of the electricity market, the Energy Market Authority is looking to launch green, sustainable and transition bonds as part of a $2 billion multi-currency medium-term note programme, The Straits Times has learnt.
These bonds could involve projects relating to natural gas, such as retrofitting existing natural gas plants to lower their emission intensity. With the power sector currently accounting for 40 per cent of Singapore’s carbon emissions, EMA is looking to decarbonise its energy sector, withwithout compromising Singapore’s energy security or affordability.
which would lead to a lower carbon emission intensity of 100g carbon dioxide emissions per kilowatt hour during the life cycle of the plant. Acknowledging that the green transition pathway is “highly challenging”, Mr Goh said that it is therefore critical for the bond issuer to “sufficiently demonstrate” that the proceeds are used to finance projects with environmentally sustainable benefits.
He noted that medium-term notes are more attractive to investors due to the better returns and longer time horizon, which does not require constant renewals as with short-term financing instruments.