Issue 4 - National Environment Agency

A biannual nea publication
issue four: may/june 2013
E X P LO R I N G H U M A N I T Y ’S E N V I R O N M E N T
RISING COSTS OF CLIMATE CATASTROPHES SINGAPORE’S CLIMATE CHANGE STRATEGY TACKLING HAZE IN SOUTHEAST ASIA EFFECTS OF RISING
TEMPERATURES IN ASIA BEHIND THE CLIMATE NEGOTIATIONS LAUNCH OF WORLD’S FIRST TROPICAL CLIMATE CENTRE WEANING THE US OFF
FOSSIL FUELS EASY GUIDE TO ENERGY EFFICIENT LIGHTING CUTTING EMISSIONS TO BOOST COMPETITIVENESS INSIDE THE GREEN CAMPUS TOP
ASIAN ENERGY EFFICIENCY MARKETS ECOSYSTEM IMPACTS ARE RISKY BUSINESS LOW-CARBON TECHNOLOGY CARBON EMISSIONS VISUALISED
450ppm and beyond
What climate change
holds for our future
Inside
The new energy
conservation act
– and –
best ee markets
explored
Globally, glaciers and ice sheets are melting
at an astounding rate, a phenomenon largely
attributed to climate change. In the medium
to long term this will have an enormous
impact on coastal cities, island nations and
water supplies for growing urban populations
in many developing countries. The recent
documentary Chasing Ice, by photographer
James Balog, showcased the shocking
retreat of glaciers in Greenland, Iceland,
Nepal, Alaska and the United States’ Rocky
Mountains. Balog founded the Extreme Ice
Survey (EIS) in 2007 to produce a permanent
record of the planet’s changing ecosystems.
Merging art and science, it creatively
highlights the often unseen effects of global
warming. To watch the trailer for Chasing
Ice, visit extremeicesurvey.org or use your
smartphone to scan the QR code below.
Background image: part of the Dawes
Glacier collapses at Tracy Arm-Fords Terror
Wilderness, Alaska, USA
note from the
editorial team
I
t is hard to imagine a thornier issue than climate change that
threatens the future of humanity. An international problem that
respects no boundaries, it’s exceedingly complex in terms of the
natural and manmade systems that influence it and those it affects.
If we are to address this challenge effectively, we must collectively strike
a balance between meeting the demands of today and safeguarding the
future – a psychological state that doesn’t come naturally to a species
hallmarked by short-termism.
Without fail, however, each passing year the climate stakes get higher
as global carbon emissions grow at some two to three parts per million
(ppm). The metrics teeter near a milestone of 400ppm – perilously close
to levels that could permanently and drastically alter the Earth’s climate.
Speaking at the recent World Economic Forum in Davos, Lord
Nicholas Stern, author of the 2006 Stern Review on Climate Change,
said: “Looking back, I underestimated the risks. The planet and the
atmosphere seem to be absorbing less carbon than we expected and
emissions are rising pretty strongly. Some of the effects are coming
through more quickly than we thought they would.”
Record natural disasters and atypical weather have affected many
corners of the globe, from fires in Russia, prolific droughts in Africa and
record heat in the US to extensive flooding in Thailand and Pakistan.
The extreme temperatures being recorded in Australia have necessitated
the addition of new colours to weather maps, while epic hurricanes have
flattened whole regions of rich and poor nations alike. The devastation
wrought in the mighty metropolis of New York was a wake-up call to
cities all over the world.
While it’s worth acknowledging humanity as a key contributor to
the problem, it also holds the key to its solution. Binding international
agreements on climate action would be useful but are hard to come by
– some even feel idealistic. We discuss the challenges with Ambassador
Burhan Gafoor, Singapore’s Chief Negotiator on Climate Change.
In the face of slow negotiations at United Nations climate summits,
and with greenhouse legislation waylaid in many countries, calls for
industry to take the lead are gaining traction. Rocky Mountain Institute’s
Dr Amory Lovins puts forward a lucid business case for energy
efficiency and renewable energy technologies that give firms a strong
financial incentive to drive action on climate change.
Of course, there is also the cost of inaction. As research by the
Economics of Ecology and Biodiversity (TEEB) for Business points out,
pesky environmental and climate externalities are already starting to bite
corporate supply chains and balance sheets. The business imperative for
change is growing.
As we see both in international trends from Frost & Sullivan and
company case studies such as Holcim, energy efficiency and other
environmental considerations are taking hold in the corporate world. But
will the pace of change reflect the urgency with which climate change
must be tackled – and will enough be done to avoid a four or even fivedegree Celsius rise in temperature?
In this issue of ENVISION, we seek perspectives and insights from
across academia, government and business on how best to tackle the
climate menace. While the severity of the problem has been increasing for
decades, the warnings are becoming harder to ignore. Lord Stern says the
situation is “potentially so dangerous that we have to act strongly... these
risks for many people are existential.” How we respond to this challenge
will define our lives, the future of our cities and the fates of our nations.
Issue 4
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Contents
45
Publisher
National Environment Agency (NEA)
40 Scotts Road
Environment Building #19-00
Singapore 228231
CEO
Andrew Tan
Editorial committee chair
Ong Eng Kian
Editorial committee members
Ram Bhaskar, Dulcie Chan, Cheong Hock Lai,
Chua Yew Peng, Fong Peng Keong, Suresh
Kulaveerasingham, Wong Chin Ling
58
Editorial lead
Chris Tobias
Special thanks to:
Prof Mely Anthony, Pete Bronski, Penny Burrt,
Dr Neil Sebastian D’Souza, Dr Jackson Ewing, Prof
Steve Elliot, Ambassador Burhan Gafoor, Kelvin Goh,
Jaime Ho, Allan Khoo, Mads Lauritzen, Cheryl Lim,
Jerome Lombardi, Dr Amory Lovins, Melissa Low,
Jan Lui, Aidan Lynam, Kholid Mawardi, Elizabeth
McRae, Prof George Ofori, Raja Pillai, Priti Saldanha,
Valya Serivalsatit, Suchitra Sriram, Shiva Susarla,
Dennis Tan, UK Met Office, Nahim Bin Zahur
NEA contributors and assistance
Ng Pei Chen, Karen Chow, Patricia Ee, Suresh
Kulaveerasingham, Leonard Lee, Adrian Tan, Janice
Tan, Roland Tan, Winston Tan, Michelle Tay
28
National Climate Change Secretariat (NCCS)
contributors and assistance
Janice Quah
Comments and opinions made by parties
interviewed by ENVISION magazine do not
necessarily reflect the views or policy of the
National Environment Agency (NEA) nor the
Singapore Government. While every effort is
made to verify all information, the NEA bears no
responsibility for the accuracy of content from
external parties, unintentional errors or omissions
All materials remain copyright of the NEA and
no reproduction is permitted without written
authorisation.
Portrait CMYK.pdf
ENVISION magazine is printed
on environmentally friendly
paper stock.
For feedback, comments and
contributions, please email
chris_tobias@nea.gov.sg
ISSN 2251-3922
Produced and designed by:
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002
1
4/26/12
56 42
GLOBAL BRIEFING
05 Life in the 450ppm world
Rising greenhouse gas concentrations
threaten our very existence
10 The rising cost of climate change
Disastrous weather around the world
1:10 PM
CLIMATE CHANGE
12 Challenges, opportunities, partnerships
Inside Singapore’s national strategy
16 Clearing the air
Regional approaches to tackle
transboundary haze
20 The impact of rising temperatures
How an increase of 4°C could affect
life in Southeast Asia
22 Behind the negotiations
Ambassador Burhan Gafoor
assesses the progress of global
climate change talks
28World’s first tropical climate and
weather research centre launches
The centre will utilise sophisticated
software to study and monitor
climatic conditions in the tropics
05
44 Training for the future
Reflections on the Singapore Certified
Energy Manager programme
57 The future of forecasting
The workings of a real-time weather
monitoring system
Industry innovation
45 Plugging into know-how
How a new industry training facility is
helping to build capacity
engagement
58 Challenging decisions
Approaches to better policy and business
to effectively mitigate climate change
50 Business on the brink
Dr Dorothy Maxwell on the
financial risk to business of
ignoring ecosystem impacts
BEHAVIOURAL INSIGHTS
62 Conflict of interest
Are landlords and tenants locked in an
energy saving stand-off?
40 A bright idea
Adopting eco technology can be a
light bulb moment for business
techability
54 Twelve carbon curbing technologies
The most promising inventions being
used to mitigate climate change
64 Devil’s in the detail
How energy efficiency data can
benefit consumers
PARTING SHOT
70 Into thin air?
Will the Clean Development Mechanism remain relevant as emissions trading falters?
42 Cut emissions to boost competitiveness
The implications of the new Energy
Conservation Act explained
56 A city’s emissions made visible
An innovative video highlights New
York’s hidden atmospheric changes
education for global challenges
66 Required learning
Equipping environmental professionals
through multidisciplinary study
OPPORTUNITIES
72 Career change?
Find your next move in
environmental management
ENERGY EFFICIENCY
30 Energy efficiency evolves
The dynamic factors causing power
costs to skyrocket and the ripe
business opportunities to cut costs
34 Bold business solutions
An informed approach to weaning
the US off fossil fuels
Issue 4
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global briefing
t
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Read ENVISION o
Out
Now!
NEA launched ENVISION magazine
because it believes informed
discussions are crucial for achieving
a cleaner, healthier and more
beautiful world.
Life in the 450ppm World
It’s now easier than ever to
read compelling articles on
environmental management by
accessing its tablet-friendly edition.
The higher concentrations of greenhouse gases go, the more
uncertain civilisation’s future becomes. Find out what a
450ppm world and beyond means for humanity
Simply visit www. nea.gov.sg
or scan the QR codes found
below for the latest government
and industry news and
perspectives, or see http://tinyurl.
com/b85h8xs to download a
PDF version.
O
Previous Issues
Issue one
Focus on waste management
and resource recovery. Half of
the world’s population now
lives in cities and, with many
facing looming challenges,
closing waste, energy and
water loops could be a key
defining challenge for municipal
authorities and city planners.
Issue two
Focus on Rio+20, which
highlights many aspects of
sustainable development.
Topics include integrated
environmental master
planning in Tianjin EcoCity, environmental policy
and research into waste
management in Singapore.
Issue three
We delve into the critical
connection between
environmental factors and
their influence on urban public
health and wellbeing. We
also look closer at tactics for
fighting dengue fever and
international perspectives on
air quality.
ur world potentially faces
devastating impacts if humanity
fails in its collective goal of limiting
global temperature increases to
below 2°C relative to pre-industrial levels.
Consistent with news of extreme weather
and climate events in 2012, evidence
from the IPCC now suggests a strong link
between climate change and increased
climate extremes.
Why has extreme weather failed to heat up
the climate debate? Is this a sign of what’s to
come in a 450ppm world?
Since the beginning of human civilisation
up until about 200 years ago, our
atmosphere contained about 275 parts
per million of carbon dioxide. Parts per
million (ppm) is simply a way of measuring
the concentration of different gases and
means the ratio of the number of carbon
dioxide molecules to all of the molecules
in the atmosphere. The figure of 275ppm
Contributor
Melissa Low, Energy Studies Institute,
National University of Singapore
is a useful amount – without any CO2 or
other greenhouse gases to trap heat in the
atmosphere our planet would be too cold for
humans to inhabit.
Today, the level is nearly 395ppm and this
number rises by about 2ppm every year.
Atmospheric concentrations of CO2 and
CH4 (1,774ppb) in 2005 exceed by far the
natural range over the past 650,000 years.
Global increases in CO2 concentrations are
due primarily to fossil fuel use, with land
use change providing another significant but
smaller contribution.
At first in the late 1980s and early 1990s,
the scenario routinely used was 550ppm
CO2 – mostly because it was double the
pre-Industrial Revolution concentrations and
hence easy to model. Today, the International
Energy Agency (IEA) looks to a 450ppm
scenario, suggesting it to be a global energy
pathway compatible with a near 50 per cent
chance of limiting the long-term increase
in average global temperature to 2°C above
pre-industrial levels.
Bill McKibben, founder of the 350
Movement, argues that these numbers are
at best only guesses of what is achievable
politically and that no one knows how much
change such scenarios would produce.
He suggests a further problem with higher
scenarios, namely that they imply to policy
makers and the general public that we still
have an atmosphere in which to put more
carbon and time in which to gradually adjust
policies governing emissions.
The truth is we don’t – not with feedback
loops such as thawing permafrost emitting
methane that has been locked up in ice
Issue 4
005
global briefing
006
(Impact will vary by extent of adaptation, rate of temperature change and socio-economic pathway)
3.0
Global average annual temperature change relative to 1980–1999 (°C)
2.5
0
1
2
3
4
5°C
ppm per year
2.0
Increased water availability in moist tropics and high latitudes
1.5
Water
Decreasing water availability and increasing drought in mid-latitudes and semi-arid low latitudes
Hundreds of millions of people exposed to increased water stress
1.0
0.5
0.0
1960
1970
1980
1990
2000
recent monthly mean CO2
at Mauna Loa
Ecosystems
atmostpheric CO2
at Mauna Loa observatory
400
400
395
380
390
385
380
2008
Up to 30% of species at
increasing risk of extinction
Increased coral bleaching
Most corals bleached Significant extinctions
around the globe
Widespread coral mortality
2010
Scripps Institution of Oceanography, National Oceanic and Atmospheric Administration, US, December 2012
Parts per million
No matter what the figure, climate
extremes are cause for worry for more
than one reason. In addition to the dangers
associated with extremes, fossil fuel-based
electricity production can be adversely
affected by air and water temperatures.
This simply means that thermal and nuclear
plants will see reduced efficiencies in hotter
temperatures, while the necessary cooling
processes for these plant types will be
constrained by regulations on river levels and
maximum allowable temperature for return
water. Lower efficiency of plants can also
mean higher energy intensities and more
greenhouse gas pollution.
The supply of renewable energy sources
is also vulnerable to an increase in extreme
weather events. Hydropower will be
adversely affected by increased variability of
rainfall and increased evaporation. Change
in wind patterns or insolation – exposure
to the sun’s rays – will affect the variability
and increase the intermittency of wind
and solar-based electricity generation. The
energy sector will experience both increased
demand and diminished supply in extreme
weather and climate events. A 450ppm world
will therefore have to utilise more resilient
energy systems, more fuel diversity and
more interconnection between countries
Examples of impact Associated with Global Average Temperature Change
Annual mean growth rate of CO2 at Mauna Loa
Parts per million
for millions of years. The 350 Movement
continues to be a testament to how oblivious
many have become to the atmospheric
concentration of harmful greenhouse gases.
For one thing, we are way past 350ppm.
Secondly, having a number to aim for forces
us to realise that the UN process is simply
continuing its post-Copenhagen direction –
seeking to iron out a new 2015 Agreement
that would supersede the Kyoto Protocol –
and that more must be done to put us on the
road towards staying below 2°C.
The International Energy Agency (IEA)
warns that the window of opportunity
in which to prevent potential irreversible
global warming is closing. To avoid locking
humanity in an irreversible path to climate
change and its potentially devastating effects,
there is a need to reform the world economy
on a low-carbon footing. Yet, in another
report by the IEA, the emissions trajectory
in a high-gas scenario is expected to stabilise
atmospheric concentration of greenhouse
gases at 650ppm, resulting in an average
global temperature rise of over 3.5°C. The
availability of unconventional gas sources
such as shale gas and coal-bed methane
means this scenario is highly likely to play
out. A 650ppm world would have a higher
frequency and severity of extreme weather
and climate events.
Terrestrial biosphere tends toward a net carbon source as:
~15%
~40% of ecosystems affected
Increasing species range shifts and wildfire risk
Ecosystem changes due to weakening of the meridional
overturning circulation
Complex, localised negative impacts on small holders, subsistence farmers and fishers
360
340
food
Tendencies for cereal productivity to
decrease in low latitudes
Productivity of all cereals
decreases in low latitudes
Tendencies for some cereal productivity
to increase at mid to high latitudes
Cereal productivity to
decrease in some regions
320
2009
2010
2011
2012
2013
“The energy sector
will experience both
increased demand and
diminished supply in
extreme weather and
climate events”
to increase energy security. Perhaps the
silver lining of this scenario is that rapid
deployment of energy-efficient technologies
could delay the lock-in of carbon emissions
allowable in the IEA’s 450ppm scenario
until 2022, leaving the door to a 2°C world
open for an extra five years. In addition to
avoiding the severe effects of climate change,
1960
1970
1980
1990
2000
2010
such investments are economically justified
in their own right. If the signs are clear, all
that’s left to do is to create political change
to steer towards 350ppm. This is easier said
than done, however.
A focus on the systemic barriers to climate
solutions and changing political dynamics
is a starting point towards a low-carbon
trajectory until and beyond 2030.
In the absence of a global agreement on
climate change mitigation, emission-intensive
infrastructure continues to be built, locking
in greenhouse gases for decades to come.
As countries are preparing once again
to come together in Warsaw, Poland, at the
end of this year, all eyes are looking to see
what the future climate regime can deliver;
whether it will generate the urgency and
political resolve to prevent runaway climate
change. One thing’s for sure, though – the
longer we remain in the danger zone, above
350ppm, the greater the chance of seeing
disastrous and irreversible climate impacts.
Increased damage from floods and storms
coasts
About 30% of
global coastal
wetlands lost
Millions more people could experience
coastal flooding each year
Increasing burden from malnutrition, diarrhoea, and cardio-respiratory and infectious diseases
Increased morbidity and mortality from heat waves, floods and droughts
health
Changed distribution of some disease vectors
0
1
2
Substantial burden on health workers
3
4
5°C
Source: Figure SPM.7. Summary for Policymakers. Climate Change 2007: Synthesis Report. Contribution of Working Groups I, II and III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change. NCCS
Issue 4
007
global briefing
Some CO2 occurs naturally
in the atmosphere
SUN
3.
2.
Some of the infrared
radiation is absorbed by
greenhouse gas molecules
such as carbon dioxide
(CO2), methane (CH4) and
nitrous oxide (N2O)
As the Earth’s
surface warms,
it emits infrared
radiation
1.
Most solar
radiation is
absorbed by the
Earth’s surface
% of
world total
16.7
15.7
11.7
6.6
4.7
4.6
4.3
3.1
1.9
1.6
1.3
1.3
1.3
1.1
1.1
1.1
1.0
1.0
0.9
0.9
81.7
Carbon dioxide (CO2),
sulphur hexafluoride (SF6),
perfluorocarbons (PFCs),
hydrofluorocarbons (HFCs)
Ea
rth
’s s
ur
fac
e
Country
GHG emissions
(MtCO2e)
China
7,195
USA
6,784
European Union (27)
5,047
Brazil
2,841
Indonesia
2,036
Russia
1,998
India
1,865
Japan
1,349
Canada
806
Mexico
671
Iran
568
South Korea
568
Australia
561
Ukraine
494
Venezuela
453
Nigeria
451
Turkey
425
South Africa
423
Saudi Arabia
375
Malaysia
368
Total
Greenhouse gases
are produced
At
mo
sp
he
re
Estimated Greenhouse Gas (GHG)
Emissions by Country (2005)
Solar radiation
Methane (CH4) and
nitrous oxide (N2O)
Methane (CH4)
008
Issue 3
Source: NCCS
Source: Climate Analysis Indicators Tool (CAIT) Version 9.0
(Washington DC: World Resources Institute, 2012)
09
global briefing
CLIMATE CHANGE: RISING HU MAN AND FINANCIAL COSTS
Rainstorm
Hurricane Sandy
Mumbai, India, 2005
Fatalities: more than 1,000 people
Caribbean and USA, 2012
Fatalities: at least 149 people
Water supplies, sewage and road, rail and air
travel were heavily disrupted by a massive
rainstorm that struck in July. The city’s location
on the coast of the Arabian Sea makes it
particularly susceptible to such weather.
Mumbai’s rapid expansion has given rise to
sprawling slums, some in areas that were once
marshland. As a result, many of the dead were
among the city’s poorest residents.7
Flooding
Fire, Heatwave and drought
Russia, 2010
Fatalities: tens of thousands of people
Flooding
Heatwave
UK, 2000
Southern Europe, 2003
Fatalities: more than 70,000 people
In autumn 2000, England and Wales
experienced the heaviest rainfall recorded since
1766. The deluge, which also affected Northern
Ireland and, to a lesser extent, Scotland, caused
widespread flooding from rivers. The impact
was compounded by fierce winds that cut road
and rail links and damaged buildings, trees
and power lines. In all, 10,000 homes and
businesses were flooded at 700 locations.1
Rising sea levels
South Pacific, 2003 to present
For more than 1,000 years, the Tuluun community
has lived on the Carteret Islands, a ring of six
atolls just 170cm above sea level at the highest
point and 50 miles off the coast of Papua New
Guinea. They are repeatedly inundated by spring
tides, making subsistence agriculture impossible.
Since 2007, the islands’ 26,000-strong population
has dwindled to 3,000 as many residents have
been evacuated to Papua New Guinea. It is
thought to be the first incident in which an entire
people has had to leave its home due to climate
change. Climatologists predict major migration in
coming years as millions flee coastal areas.2
Europe sweltered through the hottest summer
recorded for 500 years, with withering crops,
drying rivers and fires. The human toll of
the heatwave was massive – it is thought
to have been one of the deadliest climate
related disasters in human history. More than
14,800 people died during the first three
weeks of August, according to the French
National Institute of Health. In Italy, 9,700
heat fatalities were recorded in August alone
as temperatures in some places averaged 9ºC
higher than in the preceding year.3
When western Russia experienced its hottest
July in well over a century, the impact was
devastating and widespread.8 Harvests failed
on a massive scale, with 13 million hectares
of crops destroyed; domestic wheat prices
soared and grain shortages look set to last well
into 2014.9 A study by the US-based National
Academy of Sciences, a distinguished non-profit
body, reported that the heatwave was unlikely
to have happened without climate change.10
Hurricane Katrina
USA, 2005
Fatalities: 1,833 people
Pakistan, 2010
Fatalities: 2,000
In 2010, Pakistan experienced its worst flooding
since 1929 in basins surrounding the Indus
River.14 The disaster left almost 2,000 people
dead and directly affected a further 20 million,
mainly through the loss of livelihoods, housing
and infrastructure. Overall flood recovery and
reconstruction costs were estimated at about
US$8.74 billion to US$10.85 billion.12 Pakistan
has continued to suffer bouts of extreme rainfall,
most recently last September, when flooding
killed at least 400 people.11,14 13
Thailand, 2011
Fatalities: more than 500 people
The catastrophic chain of events that followed
Tropical Storm Nock-ten caused one of the
costliest natural disasters in history. Three
months of heavy monsoon rain left swathes
of the country flooded, including a fifth of
the capital city, Bangkok. Economic losses
amounted to US$43 billion.6
Brazil, 2011
Fatalities: more than 1,000 people
Floods and landslides caused more than 1,000
deaths; torrential rain triggered mudslides that
destroyed mountainside properties and left
thousands more people homeless. The disaster
caused almost US$5 billion in direct losses.15
Drought
East Africa, 2012
Fatalities: 50,000 to 100,000 people
Flooding
Landslides
The floods that devastated the central Gulf
Coast region caused roughly US$113 billion in
damage and extensive displacement from urban
areas. New Orleans, which suffered widespread
inundation following a levee breach, was hit
particularly hard. It is estimated that total financial
losses as a result of Katrina exceeded US$100
billion, with over $34 billion in insured losses.4, 5, 6
This ferocious storm left devastation in its wake
when it struck last autumn. Starting in the
Caribbean on 19 October, it tore through Jamaica,
Cuba, the Bahamas and the eastern coast of the
US. Costs in America were forecast at US$20
billion in property damage and US$10-30 billion
for lost business, making it one of the country’s
most financially devastating natural disasters.
Almost 8.5 million people were left without
electricity and airlines cancelled more than
15,000 international flights. Caribbean nations
were also heavily affected. Although Haiti did not
take a direct hit from the storm, torrential rain
destroyed crops and inflamed its already severe
humanitarian crisis. The UN tallied US$39.9m in
additional funding needed from 2012-13.16
Heatwave and drought
USA, 2012
The US suffered a sweltering six months in the
first half of last year, with 28 states reporting
record temperatures. Research led by NASA’s
climate scientist, James Hansen, found that
abnormal weather episodes were so rare from
1951 to 1980 that the drought could only be
attributed to the increasing accumulation of
carbon dioxide in the atmosphere. The study,
published in the peer-reviewed Proceedings of
the National Academy of Sciences, concluded
that if carbon emissions continue to rise
unchecked, extreme weather events will
become common within 50 years.17
Across Ethiopia, Somalia and Kenya, 12 million
people are in dire need of food, clean water and
basic sanitation as the region faces the worst
food crisis of the 21st century. The combination
of higher temperatures and less predictable rain
is alarming for food production. While direct
climate change linkage is still tenuous, the UK
government’s chief scientific adviser, Sir John
Beddington, said: “Worldwide, events like this
have a higher probability of occurring as a result
of climate change.”18,19
Heatwave
Australia, 2013
Australians rang in the New Year with a recordbreaking heatwave that lasted over two weeks
in many places, with temperatures regularly
rising above 48°C, with the highest recorded
figure, 49.6°C, observed at Moomba, South
Australia. The extreme conditions resulted from
the delayed onset of the Australian monsoon
and slow-moving weather systems over the
continent. The only comparable event in the
country’s recent history was a two-week
country-wide hot spell during the summers of
1972 and 1973.20
References
metoffice.gov.uk/climate/uk/interesting/autumn2000.html 2 Climate change displacement has begun – but hardly anyone has noticed, George Monbiot, The Guardian, 7/5/09 3 Setting the record straight: more than
52,000 Europeans died from heat in summer 2003; Janet Larsen, Earth Policy Institute, 28 July 2006. 4 ncdc.noaa.gov/special-reports/katrina.html 5 Special Report on Managing the Risks of Extreme Events and Disasters to
Advance Climate Change Adaptation (SREX), IPCC, 2012 6 Global Climate Change Index (CRI) November, 2013 7 woods.stanford.edu/news-events/news/preparing-climate-change-induced-weather-disasters 8 gmao.gsfc.
nasa.gov/researchhighlights/2010_Heat_Wave 9 Russia looks west amid grain shortages, Financial Times, Emiko Terazono,14/2/13 10 Proceedings of the National Academy of Sciences, DOI: 10.1073/pnas.1205276109
1
010
10
East Africa’s drought: The avoidable disaster, The Guardian, 18 January, 2012 11 Pakistan Floods: The Deluge of Disaster – Facts & Figures, Singapore Red Cross 12 http://earthobservatory.nasa.gov/NaturalHazards 13 bbc.
co.uk/news/world-asia-19763569 14 Pakistan Floods 2010: Preliminary Damage and Needs Assessment, World Bank, 2010 http://siteresources.worldbank.org/PAKISTANEXTN/Resources 15 El Salvador landslide, travel.state.
gov, 2002 16 livescience.com/24380-hurricane-sandy-status-data.html 17 http://www.pnas.org/content/early/2012/07/30/1205276109.full.pdf.html 18 A Dangerous Delay, Save the Children and Oxfam, 18 January 2012
19
Briefing on the Horn of Africa Drought: Climate change and future impacts on food security, Oxfam, August 2011 20 guardian.co.uk/environment/blog/2013/jan/21/what-is-causing-australia-heatwave
Issue 4
011
climate change
Challenges, Opportunities
and Partnerships
Singapore’s National Climate Change Secretariat (NCCS) was set up as a dedicated
agency under the Prime Minister’s Office in July 2010 to plan and coordinate
Singapore’s domestic and international policies and plans on climate change.
NCCS explains the country’s approach to dealing with climate change
S
ince the early days of our
independence, Singapore has
placed a high priority on balancing
economic growth while protecting our
environment. Today, Singapore is enjoying
the benefits of our past policies and ongoing
efforts. We are well regarded internationally
for our high-quality living environment. We
are seen as a role model for other countries
in sustainable development in areas such as
integrated urban planning, public housing,
transport infrastructure, waste, water and
pollution management.
Singapore has received various accolades
for our environmental achievements.
For instance, it ranked third overall in
the Economist Intelligence Unit’s Global
City Competitiveness Index in 2012 and
was the highest-placed Asian city. The
report highlighted Singapore’s focus on
environmental sustainability as a key
aspect of liveability.
National Climate Change Strategy
Our approach to climate change is an
extension of our history of sustainable
development. The National Climate Change
Strategy (NCCS-2012), which was released
012
in June 2012, outlines Singapore’s plans to
address climate change through a wholeof-nation approach. The document’s title,
Climate Change and Singapore: Challenges.
Opportunities. Partnerships. reflects the key
elements of Singapore’s climate strategy.
They include reducing emissions across
sectors, building capacity to adapt to
the impact of climate change, forging
partnerships to take action on it and
harnessing green growth opportunities.
Challenges
As a small, tropical island city-state,
Singapore faces significant challenges in
climate change mitigation and adaptation. We
are vulnerable to rising sea levels and extreme
weather events. Our geographical location
and small land mass also pose constraints in
switching to alternative energy sources such
as wind, hydro, geothermal or nuclear power.
On the other hand, our early initiatives to
protect the environment have limited our
scope to further reduce emissions growth.
For example, natural gas, the cleanest form
of fossil fuel, was introduced into our fuel
mix for electricity generation in 2000 and
constitutes about 80 per cent of the fuel mix
today. Singapore has also actively managed
private transport demand through capping
vehicle growth and pricing vehicle usage so
as to manage congestion and reduce vehicle
emissions. With the country’s continued
dependence on fuel imports for powering
our economy, our total emissions are
therefore projected to grow in the near term.
Reducing emissions
Nevertheless, Singapore has embarked on
policies and measures to reduce emissions
by 7 to 11 per cent below 2020 Business as
Usual (BAU) levels, as announced in 2009.
The reduction will be further increased
to 16 per cent below BAU, contingent on a
legally binding global agreement in which all
countries implement their commitments in
good faith. This will require a major effort,
given Singapore’s early mitigation actions
and difficulties to switch to alternative clean
energy. A key thrust of our mitigation efforts
is to improve the energy efficiency across all
sectors of our economy.
There are policies in place to reduce
emissions in the power generation, industry,
building, transport and household sectors.
In the power generation sector, Singapore is
continuing with its fuel-mix switch from fuel
oil to natural gas for electricity generation.
The government is building a liquefied
natural gas (LNG) terminal to import LNG
from global gas markets. The terminal will
enhance our energy security and position
Singapore as a hub for LNG related
businesses.
To encourage businesses to adopt energy
efficient practices, various incentives, such
as Grant for Energy Efficient Technologies
(GREET), which is jointly administered
by NEA and EDB, are available to co-fund
companies’ energy efficiency investments.
The Energy Conservation Act, which
came into effect in April 2013, mandates
consumers of large amounts of energy to
implement energy management practices.
Companies that consume 54 TJ or more
energy annually must appoint an energy
manager, prepare energy consumption
reports and develop energy-efficiency
improvement plans for senior management,
and also submit these to NEA.
The ECA targets the largest the largest
industrial energy consumers, which account
for almost half of Singapore’s energy
consumption.
In the building sector, the Building and
Construction Authority (BCA)’s flagship
Green Mark scheme promotes the adoption
of green building design and technologies,
and sets minimum building standards
based on energy and water efficiency, waste
management and other green features. New
buildings are required to meet minimum
Green Mark standards.
BCA has also ramped up the drive to
green existing buildings, with Singapore
being among the first in the world to
mandate environmental sustainability
standards for existing buildings.
The government has also stepped up
efforts to promote public transport, which
is a more energy-efficient mode of travel.
Under the Land Transport Masterplan,
Singapore aims to increase the public
transport modal share to 70 per cent during
peak morning hours by 2020. To make
public transport more attractive, the rail
network will be doubled by 2030 and bus
services and connectivity improved. The
recently launched Carbon Emissions based
Vehicle (CEV) Scheme aims to encourage
the use of low-emission vehicles by offering
rebates of between S$5,000 and S$20,000
to buyers of new cars with emissions of less
than or equal to 160g carbon emissions per
kilometre (CO2/km).
Singapore will continue to push ahead
to harness energy efficiency and develop
innovative low-carbon technology. The
“A key thrust of our
mitigation efforts
is to improve energy
efficiency across all
sectors”
Long-Term Emissions and Mitigation
Working Group (LWG), under the
Inter-Ministerial Committee on Climate
Change (IMCCC), will study how
Singapore can stabilise long-term
emissions. The LWG will highlight options
for emissions reductions and identify
capabilities, infrastructure and policies
needed for long-term mitigation measures.
Adapting to the impacts of climate change
Singapore has also taken actions to enhance
our resilience against climate change.
Protecting our coastline, addressing
increased flood risks and assessing the
implications of warmer temperatures on
public health are some of the measures
taken. We have also raised the minimum
reclamation level for new reclamation
projects by an additional metre, beyond the
previous 1.25-metre figure used since the
end of 2011, to take account of a possible
rise in sea levels.
Studies are also ongoing to better
understand the potential impact of climate
Singapore’s projected
2020 BAU (Business
as Usual) emissions
3.9%
7.6%
14.5%
60.3%
13.8%
77.2MT
Industry
Household
Building
Transport
Others (waste, water, other electricity use)
The BAU level refers to a projection without policy intervention.
Singapore’s BAU emissions in 2020 is projected to be 77.2MT.
Source: NCCS
change on Singapore. We are building
up expertise and capabilities on climate
science, for instance, with the set-up of the
Centre for Climate Research Singapore
(CCRS) and by working in partnership with
research institutions locally and abroad. We
will continue to prepare for the future as
global knowledge of climate science evolves
with new information, such as that arising
from the Fifth Assessment Report by the
Intergovernmental Panel on Climate Change
(IPCC), scheduled for release in 2014.
Harnessing green growth opportunities
While climate change poses a challenge, it
also provides opportunities for development
as a hub for green growth. Singapore has
placed an emphasis on developing the
cleantech industry, spanning areas such as
clean energy and energy efficiency, green
buildings, smart grids, carbon management,
and waste and water management.
By 2015, the clean energy industry is
expected to contribute S$1.7 billion to
Singapore’s gross domestic product and
employ about 7,000 people.
Technology plays a key role in driving
more efficient use of energy over the long
term. Singapore has continued to invest
heavily in research, innovation and enterprise,
with gross expenditure on research and
development (R&D) amounting to S$7.4
billion in 2011, a 14.8 per cent increase from
S$6.5 billion in 2010.
In 2011, the National Research
Foundation (NRF) launched the Energy
National Innovation Challenge programme,
allocating S$300 million to develop energy
solutions for deployment within 20 years,
to improve energy efficiency and reduce
carbon emissions. The Energy Innovation
Programme Office (EIPO), an inter-agency
group overseeing strategies to develop
Singapore’s energy sector, received a new
funding tranche of S$195 million to promote
energy R&D in the five-year period to 2015
to accelerate the growth of the clean energy
industry and to diversify into new areas such
as smart grids, green buildings and carbon
capture and utilisation (CCU).
We have also sought to augment our
research capabilities in Singapore. The
National University of Singapore (NUS)
and the Nanyang Technological University
(NTU) have set up research institutes with
multidisciplinary teams to develop solutions
to wide-ranging energy and sustainability
issues. For example, the Energy Research
Institute@NTU (ERI@N) undertakes
industry-driven research in clean energy,
focusing on wind and marine renewables,
green buildings, e-mobility, energy storage
Issue 4
013
and fuel cells, while NUS’ Environmental
Research Institute (NERI) conducts
research on issues related to climate change,
food security and sustainable energy.
The NRF has also invested significant
funding to establish the Campus for
Research Excellence and Technological
Enterprise (CREATE) in partnership
with renowned universities to work on
urban mobility, environmental sensing and
modelling, and low-carbon research, among
other research areas. Some of the research
centres established under CREATE include
the Cambridge Centre for Carbon Reduction
in Chemical Technology, which addresses
carbon emissions in the petrochemical
industry; the Singapore Peking University
Research Centre for a Sustainable LowCarbon Future, which focuses on carbon
capture, conversion and utilisation as well
as low-carbon footprint technologies; and
programmes at the University of California
at Berkeley Education Alliance for Research
in Singapore to reduce the carbon footprint
of buildings, improve the efficiency of
photovoltaic (PV) devices and harvest
solar energy for conversion into electricity.
Singapore is also well placed to serve as a
living laboratory in which to pilot and validate
new technologies in real-world settings before
commercialisation and large-scale deployment.
Various solar test-bedding initiatives are
underway to improve its efficiency and lower
costs before larger-scale adoption.
For instance, the Housing and Development
Board (HDB) is installing solar technology
in 30 precincts over a five-year period. The
CleanTech Park, the first eco-business park
in the region, aims to position Singapore as
a global test bed and preferred site for early
adoption of green technology prototypes for
tropical urban environments.
The innovations being developed and test
bedded in Singapore will not only help us to
address our own energy and climate change
challenges. They can also provide solutions
to help other cities anticipate, prepare for,
and adapt to climate change while generating
high-value jobs for Singaporeans.
Many companies and research institutes
already use Singapore as a regional hub for
research and innovation and also a test-bed
for urban solutions. For instance, one of
the world’s largest integrated solar energy
companies, Norway’s Renewable Energy
Corporation (REC), invested S$2.5 billion
to set up an integrated solar manufacturing
facility, the largest cleantech investment
in Singapore. Wind technology leader
Gamesa also has its R&D centre here,
adding to the growing wind industry cluster
that includes Vestas and Siemens. Their
presence in Singapore, in turn, creates more
opportunities for research, business and jobs.
Forging partnerships for action
The NCCS-2012 explains what the
government is doing to tackle climate
change, as well as steps individuals,
households and businesses must take as part
of a collective national effort to address the
challenges posed by global warming.
Everyone must play a role in achieving
more emission reductions over time by
making the necessary adjustments and
adopting energy saving practices. Our
many partnerships across the People, Public
and Private (3P) sectors on climate issues
are integral to helping us to better prepare
for the challenges ahead, as well as making
the most of green growth opportunities
as they arise. The government supports
ground-up initiatives and collaborates with
3P stakeholders on outreach programmes
to reach a wider audience. For instance,
the National Climate Change Secretariat
(NCCS) organised a series of roving
exhibitions with its partners from September
2012 to January 2013 to bring climate
change information to the community.
The government also works with business
associations such as the Singapore Business
Federation (SBF) and the Sustainable
Energy Association of Singapore (SEAS) to
encourage the adoption of energy-efficient
practices among businesses.
At the same time, Singapore collaborates
with international partners through various
multilateral, regional and bilateral platforms
to address climate change. In particular,
we actively participate in multilateral
negotiations under the United Nations
Framework Convention on Climate Change
(UNFCCC) to develop a global agreement
Ministry of the Environment and Water Resources
climate change
Deputy Prime Minister Teo Chee Hean speaking at
the COP18 conference in Doha
on climate change. Singapore also works
in partnership with other countries and
international organisations to exchange
knowledge and technical expertise. For
instance, it was invited to join the C40 Cities
Climate Leadership Group (C40) as an
observer city in 2012 in recognition of its
achievements as a global city in economic
growth and environmental sustainability.
Our involvement in the C40, a network of 58
cities committed to implementing sustainable
climate-related actions, allows us to share our
sustainable development experiences and to
learn from other major cities’ best practices.
We have been collaborating with other
countries such as Japan, South Korea,
Thailand, France, Germany and Norway,
as well as international organisations such
as the World Bank and various UN agencies
on training programmes in environmentrelated issues, including sustainable urban
development, water management, energy
efficiency and emissions reduction.
Conclusion
Singapore has overcome challenges in the
past to become an environmentally friendly
global city despite our land and resource
constraints. Looking forward, it is important
for our stakeholders to similarly work
together to address the challenge of climate
change. Together, we can achieve the vision
for Singapore to become a climate-resilient
global city that is poised for green growth.
CLIMATE CHANGE AND SINGAPORE
Mitigation measures
Households
Tighten Minimum Energy
Performance Standards (MEPS)
for household air-conditioners
and refrigerators (2013)
Extend MEPS to lighting (2014)
and other appliances
Power generation
Switch fuel mix away from
fuel oil to natural gas for
power generation
Reduce plastics incineration
Require Green Mark Certification for
existing buildings when retrofitted
(2013)
Audit building cooling systems
every three years in new and
existing buildings that have
undergone retrofitting (2013)
Submit energy consumption
and energy related building
data (2013)
Transport
Achieve a 70:30 modal
split between public and
private transport
Industry
Extend the Grant for Energy
Efficient Technologies
(GREET) scheme (2012)
Implement carbon
emissions based vehicle
(CEV) scheme to encourage
purchase of cars with lower
carbon emissions (2013)
Develop and support energy
efficiency financing pilot
schemes (2012)
Encourage creation of
co-generation plants in
energy-intensive sectors
Graphics by NCCS
Encourage more solar testbedding and research
Waste/water
Incinerate sludge rather
than dispose in landfills
Capability development measure:
Energy Conservation Act for large energy users to develop energy
efficiency improvement plans and take other measures (2013)
Buildings
Require Green Mark Certification
for all new buildings
46
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47
Issue 4
015
climate change
Clearing
the air
Transboundary haze has wide-ranging impacts on health, biodiversity
and Southeast Asian economies. How can policymakers
tackle this persistent scourge?
I
n August 2012, NEA announced it
would implement measures to improve
national air-quality standards by 2020.
The changes are primarily concerned
with domestic sources of pollution, such as
transportation and industry, but will also
address international ones.
Transboundary haze, which includes
atmospheric dust, smoke and other dry
particles, will be monitored and measured
more widely, and NEA will explore more
effective ways of alerting the populace to
changes in haze levels.
Such developments make it apt to reevaluate the issue, revisiting its primary
causes and considering how affected
countries might influence its trajectory.
Discussions of haze necessitate a focus
on weather conditions, which are changing
016
Contributors
J Jackson Ewing and Elizabeth McRae,
S. Rajaratnam School of International
Studies (RSIS) Centre for Non-Traditional
Security Studies at Nanyang Technological
University
in Southeast Asia as elsewhere. Regional El
Niño dynamics are strongly related to the
propagation and distribution of haze, and
uncertainties abound regarding how climate
change is affecting El Niño cycles and might
amplify or otherwise affect haze challenges.
Both climate and El Niño are increasingly
relevant factors to consider, but the crux of
any effort to combat transboundary haze
remains on the ground in Indonesia.
A recurrent threat
Transboundary haze, a sporadic problem for
decades, became a key concern in Southeast
Asia following a major episode in 199798 that was recognised as one of the most
damaging environmental catastrophes in
recorded history.
That event and others since have had
a significant impact on public health,
biodiversity, tourism and economies in the
region. But what factors are behind these
annual incidents and their severity?
Forest fires in Indonesia, notably those
originating from Sumatra and Kalimantan,
are the primary cause of haze in the region.
The occurrences of the late 1990s resulted
from a convergence of political, economic
and environmental conditions conducive to
land clearance.
More specifically, evidence suggests that
the palm oil industry took advantage of the
favourable climate to clear land through
burning, contributing to the loss of nearly
five million hectares of forest and blanketing
the region with haze. Since then, it has
regularly affected the region – from 2001-03,
in 2006 and from 2009 onwards.
In Indonesia, forest-clearing fires typically
occur during the annual dry season from
June to September.
They were traditionally set by small-scale
landholders to rejuvenate soil after harvest
and to make land available for agriculture.
In recent decades, however, the potential
economic and financial benefits from timber
and the production of commodities such as
palm oil mean bigger logging companies and
plantation owners now account for much of
the deforestation.
Areas particularly affected by large
concerns include the lowlands of Sumatra
and Kalimantan, which experienced a
combined annual forest loss of almost 3.5
per cent during the 1990s.
From 1990 to 2005, over 40 per cent of
their forest cover was lost. After a shortlived reduction in forest clearing during the
economically lean years of 1999 and 2000,
rates shot back up, partly in response to
price increases for palm oil and other landbased commodities.
It is difficult, at present, to determine
exact ratios of small versus large forest
clearance, as many small cultivators change
locations frequently and are not picked up
in official government statistics. Moreover,
the lines between small and large actors
can be blurred by the fact that leases held
by small landholders are often contracted
to corporate enterprises to grow products
such as oil-palm trees; however, it is clear
that significant, powerful interests continue
to play the dominant role in haze-producing
clearing activities in relation to local slashand-burn agricultural strategies.
Furthermore, significant levels of burning
look set to continue, as that method tends
to be chosen over other land-clearing
practices by small landholders and larger
entities alike. This preference reflects
cultural norms as well as a lack of viable
and affordable alternatives. Burning is quick
and efficient, requires minimal labour, helps
control pests and diseases, assists in plant
matter decomposition and aids soil health.
Emergent climatic changes could exacerbate
these already problematic conditions.
Critical interactions
The location, scale and impact of haze
depend on several key factors, including the
extent of the fires, the strength and direction
of prevailing winds, and the incidence and
amount of rain.
An understanding of current
environmental conditions, and how these
may shift in the coming decades, is therefore
an essential component of developing
appropriate and effective strategies to
address the problem.
The correlation between the occurrence
and severity of haze, and the El Niño
phenomenon, is well documented. El Niño
contributes to dry conditions and decreased
rainfall, each of which allows fires to start
and spread more easily, influencing the scale
and impact of the annual fires. The relevance
of El Niño cycles is further demonstrated by
the conjunction of such cycles in 1997-98
and 2006 with major haze events.
“On a more general
level, climate change
is likely to have
significant impacts
on both the incidence
and duration of forest
fires and haze”
There are indications that climate change
may influence the frequency and severity of
the El Niño effect. At this stage, however,
the UN Intergovernmental Panel on Climate
Change (IPCC) is unable to express a
confident understanding of the relationship
between climate change and El Niño, due in
part to the difficulty of measuring possible
linkages. Despite the absence of scientific
consensus on the relationship between
the two, this environmental phenomenon
appears to have undergone certain shifts
over the past decades. In particular, it seems
to be occurring more frequently.
On a more general level, climate change
is likely to have significant impacts on
both the incidence and duration of forest
fires and haze. Its effects include warmer
temperatures and variations in rainfall
patterns and, like El Niño, these conditions
are likely to allow fires to start and spread
more easily.
Additionally, climate change can be
affected by forest fires. When occurring on
a sufficient scale, forest burning exhibits a
vicious cycle of partially climate-induced
fires emitting climate-change causing
greenhouse gases. In Indonesia, the burning
of forested and peatland areas releases
significant levels of carbon dioxide and
destroys carbon sinks.
Peatland, which is composed of dense,
partly decomposed plant matter, is often
drained during land clearing for agricultural
expansion, providing conditions particularly
conducive to burning. Peatland fires are
very difficult to suppress, often smouldering
underground months after the fires have
seemingly been extinguished. They also
release far more carbon dioxide than the
burning of more conventional forestland.
Such practices are responsible for a
negligible proportion of most countries’
emissions, but the size of Indonesian
forests and peatlands means that sustained
forest harvesting and clearing has a
significant impact on the composition of the
atmosphere worldwide.
This adds impetus to political efforts
inside and outside Indonesia to change the
country’s forest-clearing practices.
The politics of haze
The transboundary nature of haze has
long brought it to the attention of regional
forums. The Association of Southeast Asian
Nations (ASEAN) has collaborated on
this issue since 1990, developing various
voluntary efforts to prevent, mitigate and
monitor deforestation activities in the region.
It was the disastrous impact of the 199798 haze, however, that placed transboundary
haze firmly on ASEAN’s agenda. The
Agreement on Transboundary Haze
Pollution, adopted in 2002 and implemented
in 2003, was a notable step away from
ASEAN’s non-interventionist bent, outlining
the ambitious task of drastically reducing
forest fires through a legally binding
agreement.
In years since, haze has remained on
ASEAN’s agenda and is listed as one its 10
‘priority areas’ for ASEAN environmental
cooperation in the blueprint for the ASEAN
Socio-Cultural Community (ASCC) 200915. But, despite strong rhetoric and signs of
commitment, effective action through the
ASEAN platform has remained largely absent.
Several key reasons for ASEAN’s
ineffectiveness stand out. First, and of
central importance, is that Indonesia has
yet to ratify the Agreement. With the fires
in Indonesia the primary cause of haze,
Indonesia’s position remains an obvious
barrier to meaningful action.
Second, the Agreement is weakened
by mechanisms that support the nonintervention norm. Assistance, for example,
can only be given by mutual consent and is
Issue 4
017
climate change
subject to the direction and control of the
recipient state. While this is important for
keeping the consensus-oriented approach
of ASEAN at the fore, it creates difficulties
in finding pragmatic solutions to the haze
problem. Indonesia, for example, has in
the past refused assistance, presumably for
sovereignty or reputational reasons.
Third, despite the legally binding nature
of the agreement, there is little scope for
accountability or enforceability. This is
amplified by the absence of mechanisms
for sanctions or dispute settlements and
monitoring mechanisms. In short, ASEAN’s
ability to combat difficulties is limited.
Regional difficulties are exacerbated
by Indonesia’s slowness to address forest
burning and haze through national policy
development or regional engagement.
Moreover, it has been argued that even
if Indonesia were to ratify the ASEAN
Agreement on Transboundary Haze
Pollution, it might make little practical
difference on the ground given multiple
challenges faced in implementation
including:
l Economic
and financial drivers
Indonesia has long experienced problems
with corruption and the financial incentives
to continue clearing forests are very real.
As noted earlier, forest burning is
increasingly conducted to clear land for the
production of lucrative commodities, notably
timber, palm oil and rubber. These products
contribute significantly to gross domestic
product (GDP) in Indonesia and demand
for them is growing. The financial benefits
are often accorded greater priority than
the national and regional impacts of forest
clearance on populations and economies.
l Geographical
difficulties
Even if the desire to develop strict
deforestation policies existed, Indonesia’s
geography would constrain its capacity
for effective policy implementation and
enforcement. The sheer size of forested
areas, the sprawling, archipelagic nature of
the country and the difficulty of monitoring
forestry activities from the ground are
barriers that will not dissipate.
l Legal
shortcomings
Insufficient legal frameworks affect
Indonesia’s capacity for effective action to
minimise forest fires. Creating policies will
have little impact if they cannot be enforced.
Such dynamics mean that reducing the
prevalence and volumes of transboundary
haze continues to be logistically problematic
for externally affected countries such as
018
“Understanding the
role of El Niño and
climate change is
significant for the
development of policies
to address the haze
problem”
Singapore and Malaysia. Some pathways
could, nevertheless, be explored or scaled up.
Innovative approaches are needed both to
prepare for future haze events and to address
the processes that drive forest fires.
Approaches should aim to increase
understanding of how the trajectory of the
haze is likely to change over the coming
years, as well as how regional actors can
engage with Indonesia more effectively.
Understanding the role of El Niño
and climate change is significant for the
development of policies to address the haze
problem.
Singapore, as a leader in regional climate
change research, is well positioned to play
a central role here. In particular, targeted
studies about the relevance of climate change
for El Niño periods, and haze trends and
events, would be welcome contributions.
Regional cooperation
Haze represents a clear case of
transboundary pollution inflicted on
Indonesia’s neighbours through little
or no fault of their own. As such, there
are international legal and normative
foundations for framing and adjudicating
haze as an infringement of sovereignty
and rights.
The practical applications of such
frameworks are not readily apparent, however,
and appear on the surface to be anathema to
Southeast Asia’s diplomatic culture.
From the earlier discussion, it is clear that
the consensus-oriented approach favoured
by ASEAN has been at least partially
responsible for the slow regional progress
on tackling haze. The region has consistently
avoided establishing liability regimes or
formal punitive instruments directed at
polluting countries, opting instead for
prevention strategies that have often been
found wanting. Nevertheless, the negative
ramifications of fires and haze for Indonesia
and the wider region indicate the need to
doggedly pursue solutions to the problem.
There are cooperative precedents to
this end, with Singapore and Indonesia
creating collaborative partnerships in the
wake of meetings in 2006, and Malaysia
and Indonesia signing a Memorandum of
Understanding in 2008. These agreements
have helped facilitate the use of funds and
resources from neighbouring countries to
address the root causes of haze in high-risk
areas such as Riau and Jambi.
Specifically, these efforts have led to
training and information sharing on
zero-burning techniques for farmers, firefighting improvements, better management
of peatlands and more robust air-quality
monitoring. Given the wide-ranging impacts
of haze and the likelihood of natural conditions
enabling more forest burning, these efforts
should be evaluated with the possibility of
scaling up their more successful components.
Indonesia also remains engaged in
ASEAN processes despite its failure to ratify
the Agreement on Transboundary Haze
Pollution.
Ministers from Singapore, Malaysia,
Brunei and Thailand praised Indonesia at an
ASEAN forum in May 2012 for reducing
haze hotspots and for its greenhouse gas
emissions targets. While these forums have
failed to overcome haze problems, they
provide a platform for regional diplomatic
pressure and the fermentation of innovative
cooperative strategies to combat haze.
Forest preservation
Haze may also be mitigated by participation
in forest preservation programmes such as
Reducing Emissions from Deforestation
and Forest Degradation Plus (REDD+).
REDD+ initiatives have been piloted and are
ongoing in Jambi and other haze-producing
regions of Indonesia. One of its key goals is
to create incentive programmes that make
forests more valuable standing than if they
were to be cleared for agricultural activities.
Many questions remain regarding such
possibilities in Indonesia, but it is clear that,
in principle, funding related to carbon sinks
could make the potential profits to be gained
from forest clearance less attractive.
Significant REDD+ funding has already
been allocated to Indonesia through the UN
Framework Convention on Climate Change
(UNFCCC) and from countries such as
Norway and Australia.
Singapore could form partnerships with
other countries affected by the haze to
encourage Indonesia and other actors in the
REDD+ programmes to target high-risk
areas for protection.
Moving forwards
While climate change may be an increasingly
relevant contributor to transboundary haze,
reducing forest burning practices in Indonesia
is likely to be key to tackling the problem.
Indonesia must play a central role in
driving this – a task it unfortunately appears
unable or unwilling to prioritise.
USING NEW TECHNOLOGIES
FOR HAZE MITIGATION
Once the sole purview of the scientific
community, mapping technologies have
now become accessible to the masses. Users
“While climate change
may be an increasingly
relevant contributor
to transboundary
haze, reducing forest
burning practices in
Indonesia is likely to
be key to tackling the
problem”
Overcoming the formidable financial
incentives for forest burning are crucial if
changes in Indonesia’s position on haze are
to be effected. In this respect, there are signs
that the balance may be slowly shifting.
Rising concerns over the cost associated
with fire-related haze has led to Indonesia’s
apparently growing willingness to reduce the
number of forest fires.
The public health, economic and
diplomatic impacts of haze are increasingly
recognised, as are loss of biodiversity,
implications for traditional livelihoods and the
destruction of natural and cultural capital.
Initiatives such as REDD+ have also made
efforts to stop deforestation more attractive.
Indonesian action is essential and can be
bolstered, albeit modestly, by regional efforts.
To tackle the fires effectively, Indonesia must
develop realistic and measurable goals while
accepting active support from neighbouring
ASEAN member states – and such support
must be forthcoming.
The sentiment is not novel and is
encoded in the ASEAN Agreement on
Transboundary Haze Pollution, which
calls for “concerted national efforts
and intensified national, regional and
international cooperation” in response to
haze challenges. These principles remain
as relevant today as they did in the wake of
ASEAN’s early movements on haze, and
member states should continue to explore
collaborative possibilities to mitigate forest
clearing in Indonesia.
They should do so, however, with sober
assessments of their own limitations, all
while diligently monitoring, predicting and
preparing for the fog.
of Google Earth, for example, are able to
view faraway locations from their laptops or
smartphones, to preview the streets of cities
from across the world to monitoring how
natural landscapes are changing over time.
The NEA is exploiting these emerging
technologies and developing a user-friendly
web-based application to enhance hotspot
monitoring. On target to be ready by mid2013, this new application will utilise data
overlays and mapping from multiple sources,
which will help boost haze mitigation efforts
in the region.
The application will combine information
such as geo-referenced hotspot data, highresolution satellite imagery and concession
maps, which are increasingly available in the
public domain, to more accurately identify
the location and parties responsible for illegal
land-clearing activities that contribute to haze
pollution. The application will then use Google
Earth to visualise this information and allow the
analysis of the causes, historical patterns and
origins of transboundary haze pollution to be
carried out.
This screenshot depicts the location of
multiple hotspots on 4 September 2012 across
Southeast Asia, and was obtained by overlaying
MODIS Hotspot Data within the Google Earth
visualisation platform. Several days after
this data overlay was carried out, Singapore
experienced a deterioration of its PSI due to
haze which was reported in the mass media.
Issue 4
019
The impact of a global temperature rise of 4°C (7°F) in SouthEast Asia
Managing ecological public health risks
+5°C
+5°C
Forestry in Borneo 4
l Over half of the island of Borneo (which is shared by
Indonesia, Malaysia and Brunei) is covered by tropical
rainforest. This forest has an important role to play
within the carbon cycle and the mitigation of climate
change; however, it is also vulnerable to changes in
climate through fluctuations in temperature and rainfall
patterns.
l The climatic changes associated with an increase in
global average temperature of 4°C are projected to
alter conditions so that the forest-fire risk across the
region could increase.
l It is the complex interaction between human ignition
Agriculture 7
Yields of cereals crops such as rice and maize
could decrease by up to 5 per cent across
Southeast Asia; however, this fall in yield may be a bestcase scenario. If crop growth does not respond positively
to increased carbon dioxide as expected, reduction in
yield may be as much as 30 per cent or higher. Any
reduction in rice yield could have significant impacts
on large rice producers such as Indonesia, Thailand and
Vietnam. Other impacts of a 4°C temperature rise on
cereal crops include an increased incidences of drought
and extreme temperatures, affecting grain production,
and020
the potential for saline intrusion on vulnerable
coastal agricultural land as a result of sea level rise.
+3°C
11
9
8
13
3
Singapore 2
l A global average temperature rise of 4°C could
potentially have severe impacts on Singapore.
l Fresh water supplies are required to support the high
population density of Singapore but are limited by the
country’s small amount of land. Water supplies may
be affected in the future as parts of Southeast Asia
could see drought events occurring more than twice as
frequently.
l Any increase in temperature as a result of climate
change will be in addition to the higher temperatures
that result from the ‘urban heat island’ effect.
l Projected to increase, the risk of forest fires across
Indonesia puts Singapore at a greater risk of pollution
related health problems, such as upper respiratory tract
illness, asthma and rhinitis.
Fishing in Indonesia 3
l In Indonesia, fishing and aquaculture play a vital role
in the country’s economy, influencing the livelihoods
of much of the Indonesian population. In 2010, inland
fisheries, marine fisheries and aquaculture provided
more than five million people with direct employment,
with more than half depending on marine capture
fisheries for their income.
l Fisheries also play an important role in national food
security, since their products are generally consumed by
poor households across the country and fish is the main
source of animal protein in the typical Indonesian diet.
l A 4ºC rise in global average temperature is expected to
have negative implications for fishing and aquaculture
across Indonesia.
l Research into the effects of a global temperature rise
on marine capture fisheries around the world has
found that Indonesia may be among the countries that
will experience the largest decline in catch potential.
of fires and changes in the atmospheric conditions
suitable for the fires to spread that increases the risk
of forest fires. In addition, changes in the El Niño
Southern Oscillation, which influences the amount of
rainfall in the region, could have significant positive or
negative impacts on the risk of forest fires in Borneo.
11
+2°C
+3°C
5
+2°C
+5°C
6
10
+4°C
+3°C
Tropical cyclones in the Philippines 6
l The Philippines is the country most exposed to tropical
cyclones across Southeast Asia. Severe storms, known
locally as bagyo, often lead to considerable loss of life.
Flooding, landslides and high winds can all contribute
to the death toll during a storm.
l Populations situated in vulnerable locations, for
example on low-lying coastal areas or on slopes prone
to landslides, are particularly at risk.
l Lives may also be lost at sea when fishing boats are
unable to avoid the storm. Widespread damage to
infrastructure and crops as a result of tropical storms
also has an impact on the economy of the Philippines.
l In 1991, Tropical Storm Thelma (Bagyong Uring) made
landfall in the Visayan Islands of the Philippines, killing
more than 5,000 people and leaving 20,000 homeless.
Deaths resulted from extensive flash flooding, the
failure of a dam and numerous landslides. Such large
events highlight the threat to the population of the
Philippines from such a destructive natural disaster.
l As a result of a 4°C rise in global average temperature,
tropical cyclones could be more intense. The potential
rise in sea-level across Southeast Asia could further
increase the country’s vulnerability to storm surges and
other coastal flooding.
1
+2°C
+3°C
12
4
+2°C
+3°C
7
+3°C
+5°C
2
+6°C
11
+2°C
Water availability 8
There is a high degree of uncertainty about
how water availability may change with a
global average temperature rise of 4°C. Global average
amounts of rainfall are likely to increase but this will
not be true for every area. In Southeast Asia, some
countries may see increases in water availability while
other areas experience decreases. Climate change
may also affect the Southeast Asian monsoon and the
seasonal pattern of rainfall. While there is evidence that
the incidence of drought will increase in Southeast Asia,
this does not mean that the average annual amount of
rainfall will decrease.
Rice-growing in Thailand 5
l Thailand is the world’s sixth largest producer of rice and
the world’s largest exporter, selling about 10million
tonnes in 2008 and contributing about a third of the
total world rice trade. Rice is also the staple food of the
Thai population, regardless of their income.
l Any deterioration of rice production systems could
prejudice food security and the economy in Thailand
and the continent as a whole.
l During growth, rice plants are very sensitive to
extremes of temperature. Crops can become sterile if
temperatures exceed 35°C around flowering time.
l Low temperatures during other stages of the plants’
growth can also have a significant negative effect on
yield.
l With a global temperature rise of 4°C, the risk to rice
crops from low temperatures may decrease, but this
is likely to be offset by reductions in yield due to the
higher temperatures.
l With the hottest days of the year as much as 6°C
warmer over parts of the country, and without
adaptation measures, the possibility of rice sterility is
significantly greater. Rice crops may also be affected by
an increased risk of drought.
l The potential of a relative sea-level rise of 65cm across
parts of the country brings an increased risk of salt
water intrusion on vulnerable coastal agricultural land,
also threatening rice yields.
+3°C
Sea level rise 9
Highly populated and low-lying delta areas
along the Southeast Asian coast are particularly
vulnerable to sea-level rise. Across Bangkok, without
adaptation, a relative sea-level rise of 65cm by 2100
would flood large parts of the city, which has an average
height of just 2m above mean sea level.
Tropical cyclones 10
Tropical cyclones could be more intense. Global
population increases, particularly in coastal areas,
and sea-level rise mean greater cyclone and hurricanerelated losses, disruptions to infrastructure and loss of life.
Marine ecosystems 11
Marine ecosystems could be fundamentally altered
by ocean acidification, which could have a significant
impact on fisheries. This could cause substantial loss
of revenue and jobs. The loss of coral reef habitats due to
acidification may affect many commercial fish species and
could have implications for coastal communities relying on
subsistence fishing of reef species. In addition, the rise in ocean
temperatures also has the potential to have a negative impact
on both coral reef habitats and fish populations.
Extreme temperatures 12
Hottest days of the year could be as much as 6ºC
warmer over inland areas of South East Asia, such
as areas of Thailand, Laos and Borneo.
Drought 13
Drought events could occur almost twice as
frequently over Southeast Asia.
Health
The impact of a global average temperature rise
of 4°C on health could include more incidences
of heat-related illness, including heat stress, strokes and
cardiovascular disorders. City populations such as those in
Jakarta, Manila and Bangkok may be particularly at risk,
especially where air quality is already poor. Occurrences
of vector-borne diseases such as malaria and dengue
fever may change in geographical spread.
El Niño Southern Oscillation
Southeast Asia is annually affected by climate extremes,
particularly floods, droughts and tropical cyclones, while
large areas of the region are influenced by monsoons and
are prone to flooding. There is a very strong relationship
between the El Niño Southern Oscillation (ENSO), which
includes both El Niño and La Niña events, and seasonal
Issue 3
021
weather patterns.
These impacts make no assumptions about adaptive capacity. For further information about this map go to: www.metoffice.gov.uk/climatechange/guide/effects/
Mekong Delta 1
l The Mekong Delta is a low-lying region in southern
Vietnam and Cambodia. About half of the Mekong
Delta is less than two metres above sea level.
l Sea level rise is a threat to the economy and ecology
of the region. The Mekong Delta alone generates over
half of Vietnam’s total rice production.
l Under a 4°C global average temperature increase, the
global average sea level could rise by up to 80cm by
the end of the century.
l This would translate to a local, relative sea level rise of
65cm in the Mekong Delta region that could submerge
low-lying land areas.
l It could also increase the threat of saline intrusion and
storm surge damage to rice crops.
climate change
climate change
Behind the Negotiations with
Ambassador Burhan Gafoor
International climate change negotiations have been going on for decades. Many
believe reaching a consensus and agreement has been the most challenging
process in human history. To better understand its progress and future
potential, ENVISION magazine seeks out the experience of Singapore’s
Chief Climate Change Negotiator, Ambassador Burhan Gafoor
T
he UN has been negotiating climate change issues
for more than two decades. What have been the
tangible outcomes of this process?
Let me first say that the UN Framework Convention
on Climate Change (UNFCCC), established in 1992, is
important because it provides the basic foundation for
international cooperation on climate change. Although some
people feel that progress has been slow, I would say the
UNFCCC has made good progress over the years.
Firstly, it adopted the Kyoto Protocol in 1997, which
required developed countries to take action to address
climate change. Last December, at the UN Climate
Conference in Doha, Qatar, we agreed to extend the Kyoto
Protocol for another term, until 2020. In my view, the Kyoto
Protocol is significant because it represents developed
countries’ commitment to take the lead in addressing
climate change.
Secondly, although the Copenhagen Conference in 2009
failed to produce an agreement, more than 90 countries,
covering roughly 80 per cent of global emissions, submitted
pledges to reduce their emissions. This is an important step
forward.
In addition, all countries, both developed and developing,
have also committed to becoming more transparent about
their domestic actions to reduce emissions.
At the UN Climate Conference in Cancun, Mexico, in
2010, a new framework was adopted for greater monitoring,
reporting and verification of domestic mitigation measures.
This new transparency framework will help the international
community to catalogue what everyone is doing. It will also
help us calculate how these efforts are collectively helping to
address the global challenge.
022
Thirdly, we have established new institutions in areas
such as climate finance, adaptation and capacity building
to help developing countries address the climate change
challenge. For example, Singapore played an active role in
the design and establishment of the Green Climate Fund
(GCF), which will become one of the important channels
for providing climate finance to developing countries.
And, last but not least, at the Durban Conference in 2011,
a historic decision was taken to launch negotiations for a
new global agreement that will come into effect in 2020.
When this new agreement is concluded, it will provide
the framework for all countries to make a contribution to
addressing climate challenge. Ultimately, climate challenge
is a global problem that requires a global solution. Every
country has a role to play. That is why the Durban decision
was a historic one, because it decided that the new
agreement will be applied to all countries.
Are you optimistic that the international community can
conclude a new global agreement? Do you believe this
can be done by 2015, which is the deadline agreed at the
Durban Climate Conference?
We have no choice but to reach an agreement. And all
countries must work together to keep the deadline. I think
the urgency of tackling climate change is felt across the
world, in all countries, including Singapore, because we, too,
are vulnerable to the effects of climate change. That is why
we believe the UN process is critical, because we want a
global solution that involves all countries.
Singapore is prepared to play its part as a good global
citizen. But other countries have to play their part, too. In
the final analysis, we are a small country. Our total emissions
Issue 4
023
climate change
of greenhouse gases are minuscule, less than
0.2 per cent of the global total. Ultimately,
the big countries have to show leadership
and demonstrate political will. Reaching an
agreement in 2015 will be difficult, but I
think it can be done if there is political will.
What role do you think binding international
agreements – however difficult they may
be to achieve – play versus individual
initiatives on the parts of nations, industry
and citizens?
I think the two approaches are not
contradictory. They can be mutually
reinforcing. In other words, a binding
international agreement has to be built on
a foundation of individual initiatives on the
part of nations, industry and citizens. At the
same time, a groundswell of initiatives can
create momentum towards an ambitious and
binding legal agreement.
As a small country, Singapore has always
supported a rules-based international
system. In such a system, binding
agreements are the building blocks of
international cooperation. In our view, a
024
“my hope is that we will
see more action and
more activism from
the private and people
sectors in the years
to come”
legally binding international agreement
provides assurance and confidence that other
countries will implement their commitments.
The assurance that all countries will act
collectively is critical for dealing with a
global issue like climate change.
At the same time, we have to encourage
a variety of actions on the part of business
and citizens. In terms of actions at the
national level, government-led initiatives to
address climate change can only be effective
when supported by strong social norms
and environmental awareness. The people,
private and public sectors, sometimes
referred to as the 3P, must work together.
In any country, government actions alone
cannot make the difference when dealing
with such a complex issue.
In the case of Singapore, the Government
has provided the policy and regulatory
framework for mitigating carbon emissions
and enhancing our resilience to the impact
of climate change. But, ultimately, success
will depend on actions by individuals,
the community and businesses. The key
challenge here is to change mindsets.
You referred to the 3P dialogue. Have
we been able to do this successfully in
Singapore?
The Government has started a process
of stakeholder consultations between the
private, public and people sectors. I should
point out that Singapore’s National Climate
Change Strategy 2012 (NCCS-2012), which
outlines our approach to dealing with climate
change, was prepared in collaboration
with the relevant public agencies. We also
sought views from a broad range of actors,
including the general public, businesses,
academia, grassroots leaders and nongovernmental organisations.
For its part, the government will facilitate
dialogue with stakeholders through the
National Climate Change Secretariat or
NCCS. For instance, following the release
of the NCCS-2012 in June last year, the
Government organised a conference with
the National Youth Achievement Award
Council to raise awareness and discuss the
issue of climate change with our youth. And
we will try out new ways of reaching out to
different segments of the community to raise
awareness. For example, NCCS launched
a Climate Change SG Facebook page to
convey climate change messages in a lighthearted and easy-to-understand manner.
I think the page has been well-received. It
gathered more than 11,000 fan ‘likes’ within
a short period of six months and established
a vibrant online community that actively
contributes to the climate change dialogue. I
would like to see the dialogue flourish.
But I should point out that, for the 3P
dialogue to be successful there must be a
sense of shared ownership. It cannot be led
by the Government alone. The commitment
to raise awareness, change mindsets and
modify behaviour must also come from the
private and people sectors. And my hope
is that we will see more action and more
activism from the private and people sectors
in the years to come.
Let me give you a concrete example. From
time to time, we have a national campaign to
save water. I think we should have a national
campaign to encourage Singaporeans to save
energy. Both water and energy are precious
resources for Singapore. And we need to get
into the habit of using them wisely. At the
end of the day, avoiding waste and reducing
consumption of energy is a net saving for
households, for business and for our planet.
In what ways do you feel governments can
give industry the impetus to take action?
I think governments have an important role
to play in providing the right signals and
support. For example, they can provide
the right incentives to encourage energy
efficiency improvements, green solutions or
establishment of clean-technology industries.
And, indeed, the Economic Development
Board is doing this in Singapore actively.
There are significant opportunities that
exist in the global green business sector. It is
estimated that the ‘green economy’ is worth
more than US$3.6 trillion and growing. In
2011, global investments in clean energy
reached US$260 billion.
In Singapore, we are serious about
promoting green growth and about seizing
business opportunities for Singapore
companies. The government is collaborating
closely with our universities and research
institutes to conduct R&D in areas such
as solar energy, and smart grid and green
building technologies that meet our local
needs. In my view, these types of partnership
are important ways in which can deal with
the challenge of climate change.
Governments can help industries build
At the end of the day,
avoiding waste and
reducing consumption
of energy is a net
saving for households,
for business and for
our planet”
capabilities. In Singapore, the Energy
Conservation Act comes into force in April
2013. It will require large energy users to
develop energy efficiency improvement plans
and take actions to improve their energy
performance and therefore become more
competitive in the global economy. This is a
clear signal to industries that government is
serious about conserving energy.
Globally, there is a lot of talk about
renewable and alternative energies. What
are we doing in Singapore in this area?
A lot of research and innovation is neing
conducted in the area of renewable energy.
We are carrying out our own R&D, in solar
energy, for example. But there is a limit to
what we can do in the area of renewable
or alternative energy. In fact, I would
say that Singapore is ‘alternative-energy
disadvantaged.’ For example, there is no
possibility of hydro or geothermal energy
in Singapore. Wind speeds are too low to
make aeolian energy commercially viable.
Solar energy is the only source that has
some potential but we are limited by our
small size and dense urban landscape. We
are encouraging solar energy companies in
Singapore to work out innovative leasing
arrangements, but there is an upper limit
to how many solar panels you can put in a
compact, urban environment. Hopefully, as
technology improves and costs come down
further, there will be a greater use of solar
panels in our buildings.
Given the extreme weather of the past
year, have we moved beyond an era of
climate change mitigation and into one
of adaptation? Have we reached a sort of
tipping point?
I don’t think we have reached a point of no
return. It is true that the challenge facing the
international community is a Herculean one.
But it can be done if there is political will,
especially in the bigger countries.
You may have heard of a recent report
by the World Bank called Turn Down
the Heat:Why a 4 Degrees Celsius Warmer
World Must be Avoided. It painted a dire
scenario of a warming world in which global
temperatures could rise by as much as 4ºC,
leading to inundation of coastal cities and
increasing risks for food production. But,
at the same time, it concluded that such a
scenario can be avoided through urgent and
concerted global action. That is why the UN
negotiations on climate change have become
even more important.
But the UN is not the only place in which
to solve this challenge. A lot of action by
local and municipal authorities around
the world is taking place outside the UN
framework. The C40, which unites dynamic
cities around the world, is facilitating action
and innovation to deal with sustainable
development and climate resilience.
You referred to adaptation, which
essentially means preparing for the effects
of climate change. In other words, how do
we make cities and countries more resilient
to the effects of extreme weather and longterm climate change?
Whatever the scenario, the need for adaptation
and climate resilience is a necessity. It is not a
question of one or the other.
Internationally, we need an approach
that puts focus on both mitigation and
adaptation. But, at the national level, some
countries will be more vulnerable to the
effects of climate change, such as smallisland states or low-lying coastal regions. In
fact, Southeast Asia as a region is low-lying
and vulnerable to the effects of climate
change. Naturally, for many ASEAN
countries, including Singapore, adaptation is
a priority.
In what ways can Singapore be a climate
leader among other small nations?
I would not proclaim that Singapore is a
global benchmark for other countries. The
reality is that we face a unique situation as a
highly urbanised small-island city-state. Our
experience is not something to be replicated
by everyone. Having said that, I think our
experience can be useful to others because
Issue 4
025
climate change
“It is important to
realise that climate
change will affect
different regions and
different countries in
very different ways”
to understand and project the possible
impacts on Singapore and our surrounding
region. These kinds of international
partnerships will augment NEA’s ongoing
vulnerability studies to determine the impact
of climate change on Singapore’s urban
climate, water resources and coastal areas.
more than half of the global population now
lives in cities and the UN has estimated
that, by 2050, 80 per cent of the world’s
population will be urbanised.
In Singapore, we have managed our
urban environment with great care to create
a good balance between development and
the environment. In 2008, we set up the
Centre for Liveable Cities (CLC), which
looks precisely at the challenges of managing
sustainable development issues in an urban
environment. In 2010, we launched the
World Cities Summit, held every two years,
to bring together city leaders from around
the world to share their experiences on
urban sustainability.
The CLC and the World Cities Summit
are platforms for learning and sharing
experiences. And the learning is two-way
because Singapore can, and must, learn from
the best practices of other cities.
We are also doing what we can to share
our experience of sustainable development
and climate change with our fellow smallisland states. We have done so through
the Singapore Cooperation Programme
(SCP), which is run by the Ministry of
Foreign Affairs. Recently, we launched a
special technical assistance programme
on sustainable development and climate
change which is tailored to address the
needs of small-island developing states.
The programme will focus on two areas in
which Singapore has some expertise, namely
adaptation and resilience to climate change,
and sustainable cities.
What are the key areas in which Singapore
needs to ramp up its own capacity on
climate change. Who might we learn from
internationally?
As a small, low-lying island nation, the reality
is that Singapore is vulnerable to the effects
of climate change. In the area of adaptation,
we will have to learn from the best practices
of other countries to improve our resilience.
I am very happy with the positive and
proactive approach taken by NEA in the area
026
of building international partnerships. For
example, NEA has launched a partnership
with the United Kingdom through the MoU
with the UK Met Office in 2011. The Met
Office operates the Hadley Centre, widely
recognised as one of the leading centres for
climate prediction. The MoU was clearly
a significant step towards us building our
own climate change research capability by
partnering a leading global centre.
I also understand that, as part of this
move, NEA’s Meteorological Services has
established a centre for climate science
to spearhead research into the local and
regional effects of climate change.
It is important to realise that climate
change will affect different regions and
different countries in very different ways.
The impact will not be uniform. That is why
it is necessary to build our own capabilities
When we talk about climate change, the
two biggest elephants in the room are
the United States and China. Are they
really committed to concluding a global
agreement by 2015?
You are right that the two largest emitters
and consumers of energy are the US and
China. Together, they account for 45 per
cent of global emissions. The two of them
have very different profiles. The US is a
mature economy that has reached a certain
level of economic development. China, on
the other hand, is an emerging economy with
a different level of development.
At the heart of the climate debate is the
conundrum: how does the global economy
continue to grow while reducing the level
of greenhouse gas emissions? The answer
lies in sustainable development. The notion
of sustainable development is accepted
by countries around the world. But the
challenge is to put it into practice because,
in reality, countries face many urgent and
serious socio-economic challenges, such
as poverty eradication and economic
restructuring. That is why there is often a
lot of tension and divergence in the climate
negotiations because different countries face
different challenges in making the transition
to a sustainable and lower-emissions
pathway to economic development.
I would say that the large countries,
like the US, China, India, Brazil and
South Africa recognise the need and the
urgency to conclude a global agreement
by 2015. Domestically, all of them have
taken action to manage and reduce their
emissions. Internationally, they have shown
their commitment by working within the
UN process to build consensus and find
agreement. They have also been working at
the level of the G20 to build understanding
of each other’s positions. The key question
is whether they have the political will to
conclude an agreement in 2015. I think
they do, but we need to see how the process
unfolds over the next few years.
What is the biggest challenge to concluding
a global agreement on climate change?
Negotiating any global agreement is not
easy. It took nearly 10 years to conclude
the negotiations on the UN Law of the
Sea and adopt the final treaty. The Doha
Round of trade negotiations at the WTO is
still ongoing, more than 10 years after they
were launched. I think the climate change
negotiations have actually progressed quite
well, given the complexity of negotiating an
agreement among 196 countries.
I think the biggest challenge for the new
global agreement is to design a flexible
framework that can accommodate the
diversity of unique circumstances and
challenges facing every country around
the world. For an agreement to be truly
global we need everyone on board. But
to have everyone on board, we need to
accommodate their most important concerns
and constraints.
“We need to give each
country the flexibility
to decide what it can
contribute to the best
of its ability, based on
its own constraints
and challenges”
We should avoid a one-size-fits-all
approach. A complex challenge like reducing
carbon emissions cannot be solved by a
mathematical formula, to decide how to
apportion the amount of reductions for each
country. We need to give each country the
flexibility to decide what it can contribute
to the best of its ability, based on its own
constraints and challenges. At the same time,
it is important that every country makes a
contribution. We cannot solve this global
problem if we don’t have all hands on deck.
Can you tell us more about how you became
Singapore’s Chief Negotiator?
Let me confess that I did not volunteer for
this assignment. But when it came my way,
I embraced it with great gusto. In my career,
I have had some experience in international
negotiations. For example, I was dealing with
sustainable development issues in New York
in the early 1990s, and more recently with
trade negotiations at the WTO in Geneva
and with nuclear non-proliferation issues at
the IAEA in Vienna. That may explain why I
ended up with this assignment.
After having done this job for more
than three years, my sense is that climate
negotiations are probably the most complex
and the most contentious global negotiations
ever undertaken by the international
community. It is also probably the most
tangible and relevant negotiations because it
will have a profound impact on our planet,
whatever the final outcome. As a father of
two young children (two boys, aged five and
10), I often wonder what kind of planet their
children will inherit. Climate change is not
an abstract issue; it will have a big impact
on each and every one of us. To be able to
participate in such a challenging process and
represent Singapore in the negotiations is a
great honour.
What is it that you exactly do as the Chief
Negotiator? Could you elaborate a little?
There are two aspects. First, I negotiate
on behalf of Singapore at meetings of the
UN Framework Convention on Climate
Change. In concrete terms, I have to explain,
defend and advance Singapore’s views to the
international community. This requires a lot
of patient work, in terms of talking to people,
persuading them to our point of view and
building friendships with negotiators from
other countries.
Often, there are divergences on issues
on which Singapore may not have strong
interests. But, as a small country, we attach
importance to a functioning UN process.
Therefore, as Chief Negotiator, I also do
my best, where possible, to build bridges
between different sides and facilitate a
compromise between differing positions.
It has been a Singapore tradition to
play a constructive role in international
negotiations. I try to continue that tradition.
The other aspect of the job is more
domestically oriented. It is also my job to
explain to the Ministries and Agencies in
Singapore the main issues and trends at the
international level. And I give my views to
the inter-agency process in Singapore that is
coordinated by NCCS.
In a sense, the Chief Negotiator is the link
between the domestic and international. On
the one hand, I have to understand what
is happening domestically so that I can
explain this to an international audience.
On the other hand, I have to explain what
is happening internationally to a domestic
audience. I have to say that I have learned a
lot while doing this job.
What is the hardest part of handling climate
negotiations?
The most difficult part for me is the
travelling, because the meetings are held all
over the world and one is constantly on the
road or flying. Fortunately for me, I sleep
very well on a plane.
Issue 4
027
Managing
climate
change
ecological public health risks
Managing ecological public health risks
WORLD’S FIRST TROPICAL CLIMATE AND
Centre for Climate Research Singapore to
leverage high-resolution computer models
to simulate weather and climate over
Singapore and wider Southeast Asia region
T
he Centre for Climate Research
Singapore (CCRS) is the first
research centre in the world
dedicated to the tropical climate
and weather of Singapore and the wider
Southeast Asia region. It was officially
opened on 26 March 2013 by the Minister
for the Environment and Water Resources,
Dr Vivian Balakrishnan, in celebration of
World Meteorological Day 2013.
The centre, which was established under
the Meteorological Service Singapore (MSS),
aims to advance scientific understanding
028
and prediction of the weather and climate of
Singapore. It is the first in the world to use
high- resolution computer models to simulate
weather and climate over Singapore and the
wider Southeast Asia region. A new logo for
CCRS was also announced, along with the
new director, Dr Chris Gordon, who will lead
a core team of research scientists.
The International Scientific Advisory Panel
(ISAP), which was appointed in 2011, also
convened for the first time on 20 and 21
March this year. Comprising distinguished
individuals in the domains of meteorology,
climate science and earth science, it is chaired
by Professor Lim Hock from the National
University of Singapore.
The concept of CCRS was first mooted
in 2011 as part of the government’s plans to
build capabilities in climate science. CCRS
will support Singapore’s efforts in climate
resilience by producing robust long-term
climate projections. These underpin studies on
climate impact and adaptation. CCRS will also
network with both overseas and local experts
to ensure that the latest scientific developments
are incorporated, as well as cover a broader
domain of climate-related disciplines.
Since 2011, a multi-year Memorandum
of Understanding (MoU) has been signed
with the UK Met Office, the ISAP has been
appointed and the Climate Science Experts
Network (CSEN) launched.
The CSEN is where Singapore based
scientists meet to share technical information
on climate research.
WEATHER RESEARCH CENTRE LAUNCHEs
Through the hosting of lectures by
visiting experts, conducting visits to the
Central Forecast Office and CCRS, and
contributions to the climate change exhibit
at the Singapore Science Centre, CCRS also
hopes to reach out to the next generation of
climate scientists and meteorologists.
The Director-General of MSS, Ms Wong
Chin Ling, said, “The Centre’s launch marks
a major milestone in the long history of MSS.
There is a common misconception that
climate change and environmental issues are
a problem for the distant future.
“The reality is that preparedness must
begin in the present. Our vision for CCRS
is not only to support Singapore’s resilience
strategy, but also to be a world leading centre
in tropical climate and weather research
with particular focus on the Southeast Asia
region. At the helm of the new research
centre is Dr Chris Gordon, previously of the
UK Met Office, where he headed the world
renowned Met Office Hadley Centre.
Dr Gordon brings along more than
30 years of experience in climate
science research. He will spearhead the
establishment and capability-building of
the Centre, and guide climate and weather
research.
Dr Gordon will head a team of about
25 staff at CCRS, and will help grow the
number of research scientists over the next
few years.
He said.“I am committed to building up
the expertise of the CCRS and widening its
international partnerships, as well as building
a strong team of local and international
scientists, and inspiring more young people
in Singapore to take up climate science
research.
“The scientific understanding of the
dynamical and physical processes governing
tropical climate and weather systems will
naturally be the primary focus of CCRS.
“Improving our ability to predict extreme
weather such as heavy rain, and project
long-term climate change, is one of the key
challenges for the centre.”
Issue 4
029
energy efficiency
Energy efficiency evolves
Research from Frost & Sullivan reveals business
opportunities in key regional markets
A
s widespread energy
subsidies increase many regional
governments’ fiscal liability, the
provision of cheap electricity
may become unsustainable across Southeast
Asia. Furthermore, the prospects of
attracting private-sector investment could be
dimmed if electricity prices are maintained
at current levels.
As a result, there is a compelling need
to rationalise energy prices and push up
energy bills. This would affect industries’
competitiveness, but several companies have
introduced energy-efficient products that
030
Contributor
Suchitra Sriram, Program Manager,
Energy & Environment, Frost & Sullivan
yield energy savings of anything from 10 to
30 per cent.
The energy efficiency (EE) market has
been the underdogof the Southeast Asia
region, despite the presence of government
regulatory support. From an industrial
perspective, manufacturers acknowledge the
benefits of adopting energy-efficient products
and solutions, but this has not been converted
into actual investment. This could be due to
various reasons, listed below:
l I ndustrial
customers are unwilling to
invest in ‘non-core’ businesses that
prioritise which production, ensuring
safety and maintaining environmental
standards.
lA
weak business case – high capital
expenditure and long payback period –
backed up with low confidence levels in
EE projects’ results. Concerns remain
regarding equipment down-time, faults
“several companies
have introduced
energy-efficient
products that could
result in energy
savings of 10 to
30 per cent”
and issues of technological complexity
that may arise during project execution.
lA
lack of staff who are trained to identify and
execute EE projects to the desired standard.
So far, investment potential for industrial
energy-efficiency projects in Southeast
Asia is the highest in countries such as
Malaysia, Indonesia and Thailand because
of the concentration of numerous energyintensive industries. EE projects in these
countries have been undertaken using
proven technologies and processes such
as the replacement of heating, ventilation
and air-conditioning systems; generators;
improvements to pipes and insulation;
increased processing of waste; fuel
optimisation and making the most of the
existing infrastructure.
Energy efficiency measures
Singapore and Thailand are growing markets
for industrial EE projects, and Southeast
Asia is likely to dominate the industry until
at least 2015.
The markets in Indonesia and Malaysia
are smaller and are estimated to be at the
nascent stage, but offers significant potential
Issue 4
031
energy efficiency
Industrial Energy Efficiency Measures
Industrial Energy Efficiency
Market in Southeast Asia
700
Lighting systems
Lighting power controls
High-efficiency lamps
EE improvement
measures
Power and thermal
generating systems
Cogeneration (gas engine,
gas and steam turbine)
HVAC
Chiller and equipment
replacement
Heat recovery
Power generating system
Power plant
Substation
CAGR 9.2%
600
Revenues ($million)
Motor systems
Variable speed drives
motor optimisation
500
400
300
200
CAGR 12.8%
CAGR 16.3%
CAGR 14.3%
100
for future expansion. Unless energy subsidies
are removed, EE market growth in Malaysia,
Indonesia and Vietnam is likely to remain
subdued in the short-term.
Subsidies tend to increase consumption
and discourage efficient use of energy, but
Malaysia’s fairly mature energy market
makes it likely that it will fare better than
Indonesia and Vietnam.
Energy Efficiency Targets
in Southeast Asia
Country
Energy efficiency targets
SingaporeReduce energy intensity by 20% by 2020 and
Industries view ‘energy efficiency’ as
ongoing goals to be revised periodically in
order to achieve the desired result – the ability
to offer profitable products or services.
With the exception of Thailand, the lack of
private funding mechanisms for EE projects
is a restraint found in many countries in the
region. In such cases, governments need to
take primary responsibility for providing the
Major Energyintensive Industries
industrial, commercial and residential sectors
Government Incentive Mechanisms for
Industries, Southeast Asia, 2012
Major energy-intensive industries
National energy plan
Pharma, semiconductors, petrochemicals
by 35% by 2030 from 2005 levels
MalaysiaReduce final energy consumption in the
funds needed to kick-start market growth.
With high initial costs to consider, an
EE project’s financial feasibility is the most
important factor influencing a company’s
decision of whether or not to become
involved in it. Nevertheless, businesses also
consider the prevailing regulations, policy
support and general level of risk in countries
in which they plan to invest.
ESCOs EE market development
In the EE industry value chain, energy
service companies, or ESCOs, form
the crux of developing EE market
opportunities. ESCOs offer a gamut
of services, from energy audits,
performance guarantees, bidding and
procurement to installation, system
integration, commissioning, operation
and maintenance.
The ESCO industry is currently highly
fragmented and geographically diverse,
catering to a variety of industrial and
commercial customers.
The majority of industries in the
region prefer to use the services of
energy service companies (ESCOs)
because they offer performance
guarantees.
lT
hailand
tops the list of countries in which
the number of ESCOs comprising both
regional and local companies is rising. The
country launched the pioneering Energy
Conservation (ENCON) Fund way back
in 1992 and the 2008 ESCO fund to
attract private-sector participation in EE
projects that eventually led to the growth
of its domestic ESCO market.
lS
ingapore’s business-friendly environment
has attracted several ESCOs that cater
to the regional market requirements.
In addition to accredited ESCOs in
the market, several companies offer EE
retrofits and EPC services.
l I ndonesia’s ESCO market is currently the
least developed in the region. Although
ESCOs have the capability to undertake
energy audits, they lack the technical or
Industrial Energy Efficiency Market in
Southeast Asia – Key Trends
Government
direct transfers
Financial
incentives
Voluntary
measures
✔
✔
✔
✔
✔
✘
✔
✔
✘
✔
✔
Market stage
et
na
m
nd
Vi
al
la
2015
Th
ai
In
do
ne
sia
2012
ay
s
ia
0
M
Thermal generating system
Heat recovery (HRFR)
Heat pump
CAGR 8.0%
Demand side: Power control
systems
Load management
Power quality control
Sin
ga
po
re
Sizing
Optimise size for high
load factor
Standby unit
financial competence to offer performance
guarantees for EE projects.
Conclusion
Southeast Asia’s industrial EE market is
highly heterogeneous in nature, with varied
demand patterns, policy support and
awareness levels.
Sustainable growth in the EE market calls
for quick adaptation of best practice within
the industry in terms of policies, regulatory
frameworks and the establishment of
adequate financing mechanisms to address
industries’ concerns.
As the outlook for electricity prices in the
region guarantees that tariffs will be revised
upwards, industries must urgently adopt EE
practices if they are to control the impact of
spiralling costs.
Esco industry
Number of ESCO
companies
Presence of ESCO
association
ESCOs
capabilities*
34
✔
4
12
✔
3
16.3
13
✔
2
580.0
9.2
37
✘
5
41.2
8.0
20
✘
2
2012 market size
($Million)
2015 market size
($Million)
CAGR (%)
Growth
130.0
186.8
12.8
✘
Nascent
65.0
97.0
14.3
✔
✘
Nascent
115.6
181.8
✔
✔
✘
Growth
445.0
✘
✘
✘
Nascent
32.7
Rubber, food processing, beverages, inorganic
chemicals
by 10% from 2011 to 2030
IndonesiaReduce final energy consumption by 1% per
year from the business-as-usual scenario
ThailandSave 22% of total energy in 2030 relative to
the business-as-usual scenario
VietnamReduce energy consumption by 3-5% by 2010
and between 5-8% by 2010-2015
Source: Frost & Sullivan
032
Textiles, paper and pulp, chemicals, steel,
cement, fertilisers
Food processing, automotive sector, textiles,
electric appliances and components
Metals manufacturing, cement, fertilisers,
chemicals, textiles
*(1=lowest, 5=highest)
Issue 4
033
energy efficiency
BOLD BUSINESS SOLUTIONS
As founder and head of nonprofit thinktank Rocky Mountain
Institute (RMI), Dr Amory Lovins has pioneered energy efficiency.
In the recent book Reinventing Fire, of which he was senior author,
he outlined an informed approach to weaning the US off oil, coal
and nuclear energy. Speaking at a recent NEA event, Dr Lovins
shared his insights on what the future could hold for business and
economies worldwide
034
FOR THE NEW ENERGY ERA
I
f a 2050 economy weaned off oil and
coal at a saving of US$5 trillion – an
economy that is 158 per cent bigger
and emits 82-86 per cent less carbon,
all with no new inventions or national laws –
makes you sit up straight, then you’re already
on to what Dr Amory Lovins has to say.
While those figures are specific to the
US, as featured in his recent business
book Reinventing Fire, the logic behind the
numbers has implications for countries
worldwide – reasoning that is exciting senior
energy experts in Asia.
Re-examining the role of energy
Prepared by 61 RMI analysts over a period
of 18 months at a cost of US$6 million, with
much help from business in the form of
content and peer reviews, Reinventing Fire
encourages governments and businesses to
rethink energy and its links with climate,
oil, national security, economic vitality and
global development. Spanning traditional
silos, the RMI team followed advice
ascribed to General Eisenhower: “When a
problem cannot be solved, enlarge it.” Thus
Reinventing Fire integrates all four energy
using sectors – transport, buildings, industry
and materials – and four kinds of innovation,
including design and business strategy as
well as technology and public policy. The
results are astonishing.
“Could we imagine fuel without fear?
Could we reinvent fire?,” says Dr Lovins.
“Fire made us human, fossil fuels made us
modern; but now we need a new fuel that
makes us safe, secure, healthy and durable.”
He adds: “This is, indeed, currently
feasible and could even cost less than what
we are doing now.”
Issue 4
035
energy efficiency
About four-fifths of the world’s energy
still comes from burning, each year, about
19 cubic km of what Dr Lovins, a member
of the US National Petroleum Council, calls
“the rotted remains of primeval swamp goo.”
These fossil fuels have built civilisation,
increased wealth and enriched the lives
of billions of people. Yet their rising costs
to security, economy, health and the
environment are eroding, if not outweighing,
their benefits.
“We need a new fire,” he says. “This
means changing two stories, oil and
electricity, each which puts two-fifths of the
fossil carbon into the air. They’re distinct
but their uses are similarly concentrated – in
the US, for example, three quarters of our
oil fuels transport and three quarters of our
electricity powers buildings; the rest of each
runs factories.
“Fuel-efficient transport, buildings and
factories can save a lot of oil, coal and
natural gas that could displace both.”
The value of untapped efficiency gains
Dr Lovins cites that today’s energy system,
especially in the US, is not just inefficient –
it’s also ageing, dirty and insecure. In short, it
036
“We could eliminate our
addiction to oil and coal
by 2050 and use a third
less natural gas while
switching to threefold
more efficient use
and three-fourths
renewable supplies”
needs refurbishment. Yet he believes that, by
2050, it could become efficient, connected,
and distributed, with elegantly frugal autos,
buildings and factories all relying on a secure,
modern and resilient electricity system.”
“We could eliminate our addiction to oil
and coal by 2050 and use a third less natural
gas while switching to threefold more efficient
use and three-fourths renewable supplies,”
he says. “This transition could cost the US$5
trillion less in net present value by 2050 than
‘business as usual,’ assuming that carbon
release and all other external or hidden costs
are worth zero – a conservative estimate.
“Yet this cheaper energy system could be
achieved without any new national taxes,
subsidies, mandates or laws, thereby evading
the gridlock in Washington.”
The policy changes needed to enable
and speed the shift can all happen
administratively or at the sub-national level,
using the most effective institutions – which
in the US means private enterprise, evolving
with civil society and sped by military
innovation – to go around the least effective
institutions.
“This also cuts across ideological
divides,” he says, “because whether you
care most about profits and jobs and
competitive advantage, national security or
environmental stewardship, public health,
and climate protection, reinventing fire
makes sense and makes money.”
Low-carbon vehicle technology is critical
Dr Lovins uses autos as a key case study. He
said: “Currently in the US, three-fifths of our
mobility fuels goes to autos, so let’s start by
making them oil-free. Two-thirds of the energy
Fossil fuels are not forever
Coal
Liquids (predominantly oil)
Gas
100
Billion barrels of oil equivalent per year
needed to move a car is caused by its weight.
Unfortunately, over the past quarter-century
our two-tonne steel autos have suffered an
epidemic of obesity, gaining weight twice as
quickly as we have done; however, if we take
a unit of weight out of the car, then every
unit of energy it saves at the wheels saves
six more units that we do not need to waste
on getting it to the wheels, saving a total of
seven units at the tank. That’s huge leverage.
“How can we do that? We can use an
ultra-light and ultra-strong structure, such
as advanced carbon-fibre composites, that
can make dramatic weight savings snowball
yet make autos simpler and cheaper to build.
“Lighter, more slippery autos need less force
to move them, so their engine gets smaller,
and then we can afford to electrify the
propulsion. As the electric batteries or fuel
cells get two to threefold lighter and cheaper,
the price of the auto falls to about the same
as today’s models, whilst the operating price
per kilometre is lower from the start.
“These synergistic innovations of ultralight materials, new structural manufacturing
methods, and electrical propulsion – three
steep learning curves that all reinforce
each other – can create a breakthrough
competitive strategy for automakers.”
He also details how vehicle prices can drop
even faster through the implementation of
a ‘feebate’ for buyers – a rebate for efficient
autos paid for by a fee on inefficient ones.
The point of the feebate is to get auto buyers
to look at fuel savings over the full 15-year
lifecycle, reflecting society’s long-term
interests while incidentally improving profits
for carmakers and dealers.
With such innovation in the auto sector,
Dr Lovins believes that “This resulting shift
to electric autos will be as game changing
as shifting from small improvements in
typewriters to the dramatic, Moore’s Law
driven improvement in computers.”
“Taking the obesity out of the car can
triple the expected oil savings over the next
40 years and make attractive, and affordable,
the electrification that saves the rest of the
oil,” he said. Surprisingly, the ultralighting
needn’t raise manufacturing costs – the
expensive carbon fibre is paid for by simpler
structural manufacturing, cutting capital
needs by four-fifths; and by the smaller
propulsion system.
America, Japan or China could lead this
revolution, and it would make an excellent
fit to Singapore’s industrial system if there
were local interest, according to Dr Lovins.
The barriers are formidable, but mainly in
carmaking culture than in technology or
economics, and some automotive leaders
are starting to tackle them – especially
75
50
25
0
1800
1850
1900
1950
“Taking the obesity out
of the car can triple
the expected oil savings
over the next 40 years,
and make attractive
and affordable the
electrification that
saves the rest of the oil”
in Germany. Volkswagen and BMW are
launching mass production of carbon-fibre
electric cars this year.
Audi has demonstrated a carbon fibre plugin, hybrid-concept four-wheel drive vehicle
whose fuel efficiency has been rated at less
than 0.9 metric litres per 100km.
“The same business logic and technologies
apply also to big vehicles such as trucks and
aeroplanes,” Dr Lovins says.
“Tripled efficiency is in view for both,
sped up by military innovation in advanced
efficiency. This will spread back to the
civilian sector – which uses over 50 times as
much oil as the military – much as military
R&D brought us the internet, GPS and the
jet engine and microchip industries. Then off
oil sooner so we needn’t fight over it.”
As we design and build better vehicles, we
can also use them in smarter ways, he says.
“Singapore has been a global pioneer in
charging drivers for their true social cost.
“We can reduce driving by charging for
road infrastructure by the kilometre rather
than the litre. We can use IT to make public
transport more attractive and enable car and
2000
2050
2100
2150
2200
ride sharing. Those business models work
because the average asset utilisation of the
average US car is only 4 per cent. We can
encourage or require smart growth or New
Urbanist development patterns so that many
people can already be where they need to be
and not have to go somewhere else. IT can
also make traffic flow more freely.
“Together, these proven innovations can
provide the same US mobility with 46-84
per cent less driving.”
By combining today’s best vehicleefficiency techniques with more productive
vehicle use, Dr Lovins believes that, by
2050, a far more mobile US economy
could function without oil and save US$4
trillion at net present value – or $12 trillion
if economic and military costs of US oil
dependence were taken into account.
“The strategy,” he says, “is to get efficient,
and then switch fuels to any mixture of
hydrogen, natural gas or advanced biofuels.”
The business shift from fossil fuels
Dr Lovins has observed that institutional
change is coming – business logic has begun
to shift and a transition from fossil fuels is
already underway.
Mainstream analysts are already seeing
peak oil emerge – not in supply but in
demand. Deutsche Bank forecast in 2009
that world oil use could peak in about
2016 simply because oil is becoming
uncompetitive even at low prices before it
becomes unavailable even at high prices.
But Dr Lovins notes the electrified cars
that help make that happen need not burden
the electricity system.
“When smart vehicles exchange electricity
and information via smart buildings with
smart grids, they add to the grid distributed
storage and flexibility that help it accept
varying solar and wind power. Thus it’s
Issue 4
037
energy efficiency
transport without oil
Ninety per cent more automobility, 118 per cent more trucking, 61 per cent more flying
Oil
Biofuels
Electricity
Hydrogen
2025
2030
More-productive use
Efficiency
EIA savings
25
20
Mbbl/d
15
10
5
0
2010
2015
2020
2035
2040
2045
2050
Reinventing Fire: US Economy Free From Oil and Coal
Oil
Coal
Nuclear
More-productive driving
Efficiency savings
EIA’s projected savings
Natural gas
Renewables
100
Quadrillion BTU/y
75
USEIA forecast
Extrapolated
50
25
0
2010
2020
easier to solve the auto and electricity
problems together than separately.”
It is important to note the coupling of
sourcing the energy as well as its use.
“How we generate electricity gets easier if
we need less of it. Most of it is now wasted,
and efficiency technologies continue to
improve faster than we install them. The
unbought ‘negawatts’ of saved energy keep
getting bigger and cheaper,” he says.
“As we get better at installing efficiency
in buildings and factories, so they start to
get faster more efficient than they grow, US
electricity use, rather than growing 1 per
cent per year, it could shrink at the same rate
despite the electrified autos.”
Retrofits yield attractive savings
Reinventing Fire showed how buildings in the
US could triple or quadruple their energy
productivity by 2050, saving US$1.4 trillion
038
office equipment, cut the maximum cooling
load by a third. Renovating smaller chillers
rather than adding bigger ones saved over
US$17 million of capital costs, covering the
cost of most of the other improvements and
cutting the payback to three years.
The potential is often larger in Asia.
Retrofitting the Rohm semiconductor
company’s Kyoto office saved 44 per cent of
its energy, with a two-year payback, without
even using superwindows. Even the most
efficient new offices in Japan lag behind their
US counterparts, and Japan ranks 10th of 11
major industrial countries in the efficiency
of its commercial buildings, which use on
average 2.6 times the energy per square
metre of their German counterparts.
Dr Lovins reports that some US retrofits
of commercial buildings that use integrative
design now save up to 70 per cent, making
them even more energy-efficient than new
buildings – a testament to how fast the state
of the art technology is moving.
“The key is using integrative design
to give multiple benefits from single
expenditures,” he says. For example, his
superefficient house – which has grown
47 indoor banana crops high in the Rocky
Mountains with no furnace despite outdoor
temperatures down to -44ºC – has a central
arch with 12 functions but only one cost.
2030
2040
2050
net present value with a 33 per cent internal
rate of return.
“The savings are worth four times their
cost,” Dr Lovins says. “Moreover, integrative
design can often make very large energy
savings cost less than small or no savings,
turning diminishing returns into expanding
returns. That’s how our retrofit two years ago
saved two-fifths of the energy used in New
York’s Empire State Building – optimising
the building as a whole system, not its
components in isolation.”
In that case study, an energy retrofit was
added to a half-billion-dollar renovation.
Remanufacturing the building’s 6,514
double-glazed windows at a temporary onsite facility quadrupled the insulation they
provide, rendering them almost perfect for
blocking heat while enabling light to pass.
These so-called ‘superwindows,’ plus other
improvements including better lights and
Energy productivity could double
In industry, with a half-trillion dollars of
conventional US energy-saving potential,
RMI found a US potential to double energy
productivity by 2050 with a 21 per cent
internal rate of return. But integrative design
can also improve common equipment, such
as the motor systems that use three-fifths of
the world’s electricity.
Half of that electricity runs pumps and
fans. Yet just replacing thin, long, crooked
pipes with fat, short, straight ones often
saves 80 to 90 per cent of pumping energy
and shrinks the pumps and motors, reducing
capital cost. That’s not a new technology
– just a change in design mentality that Dr
Lovins learnt from Singapore engineer Lee
Eng Lock.
Moreover, each unit of friction saved in
the pipes saves 10 units of fuel at the power
station, because the compounding losses in
between reverse into snowballing savings.
Many diverse industrial redesign projects
have realised this in a variety of contexts,
including chip fabrication, data centres and
petrochemical plants. For example, a frontend chip fabrication plant that RMI helped
Texas Instruments to design saved 30 per
cent of its capital cost as well as much of its
energy and water.
Speeding the shift to renewables
Needing less electricity can speed ways to
better ways of producing it, chiefly from
renewable sources.
“Both solar and wind farm electricity costs
have dropped dramatically with the trillion
dollars invested in modern renewable power
since 2004,” says Dr Lovins.
“In fact, in 2011 renewables excluding
hydropower won a quarter-trillion dollars’
worth of private investment, added 84 GW
and reached 1.5 times the installed capacity
of nuclear worldwide. Orders for nuclear and
coal plants are going away worldwide as they
cost too much and carry too much risk for
private investors.
“In contrast, renewable energy prices keep
going down. Gas, efficiency and renewables
have already taken a third of coal’s US
market in six years and are poised to take
the rest at below just the operating cost of
existing coal and even many nuclear plants.”
This is in the face of common logic that
such ‘reliable’ sources as coal or nuclear are
essential to maintaining power grid stability.
“We are often told that coal and nuclear
are the only power sources that can keep the
lights on 24/7, but no plant is 24/7,” he adds.
“Any power source can go down, often
without warning and for weeks or months
at a time. But grids have been designed
to handle this sort of intermittence and
can equally well handle the variability of
photovoltaics and wind power when they’re
diversified, forecasted and integrated. If
excess renewable energy is put into icestorage air conditioning and smart charging
of electric vehicles, the isolated Texas
electricity system, for example, can reliably
meet load every hour of the year with no
bulk storage,” he says.
Such choreography of diverse renewable
sources is already underway, especially in
Europe. In 2010, four German states were 43
to 52 per cent wind powered, Portugal was 45
per cent renewable powered and Denmark,
36 per cent. Denmark has gone from having a
highly centralised coal powered grid to using
decentralised wind farms and cogeneration.
Germany is one-fourth renewable-powered –
a figure that doubled in five years and is slated
to double again by about 2025. These cases
show that countries can greatly expand and
integrate renewable sources – especially when
combined with energy efficiency.
Microgrids offer stability
According to Dr Lovins, decentralising and
compartmentalising grids into microgrids
that can operate separately if necessary can
eliminate the risk of widespread outage by
any number of causes such as a cyber-attack,
severe weather, solar storm or earthquake.
“Our future energy
will be not dug from
below but flow
from above”
“This can greatly improve national
security at virtually the same cost,” he says.
Dr Lovins runs his house in this
‘islandable’ fashion; the Pentagon has
adopted the same strategy for its own power
supply. Fifteen US states have reversed their
regulatory incentive, rewarding electricity
providers not for selling more energy but for
cutting customers’ bills.
“This alignment of utilities’ with
customers’ interests,” Dr Lovins adds:
“This alignment of utilities with customers’
interests profoundly shifts their culture and
behaviour.”
Asia: brimming with opportunities
Systematically applied to vehicles, buildings,
industrial processes, and electricity
generation these energy innovations add up
to a ‘once in a civilisation’ opportunity.
Led by business, sped by smart policies
in mindful markets, the US can be off oil
and coal by 2050, saving trillions of dollars,
growing the economy 2.6-fold, making major
blackouts impossible and cutting fossil carbon
emissions by 82 to 86 per cent.
Strong interest in this approach among
Chinese policymakers has led RMI to form
a consortium to help apply Reinventing
Fire’s innovations to Chinese strategic
energy planning. Also valuable for Asian
development is the potentially huge capital
savings if the best buys – especially efficient
use of electricity – are bought first, deferring
or avoiding extremely capital-intensive
investments in electricity supply.
Dr Lovins estimates from World Bank
data that investing in building devices that
save electricity rather than expanding power
stations and grids can take roughly 1,000
times less capital which can be paid back
about 10 times as fast.
This combination can cut capital needs
by about 10,000 times in the power sector,
which uses about a quarter of the world’s
development capital. Turning that sector
into a net exporter of capital for other
development needs, Dr Lovins believes, could
be the most powerful known macroeconomic
lever for global development.
“These best energy buys are also the most
effective solutions to climate change, nuclear
proliferation, energy insecurity and energy
poverty, he adds.
“Our future energy will be not dug from
below but flow from above, and will be
plentiful, permanent, everywhere and free.
This ‘new fire’ really could make energy do
our work without working our undoing.”
Reinventing Fire, its technical background,
a TED talk about it, and a Foreign Affairs
summary are all at reinventingfire.com
Issue 4
039
energy efficiency
Energy-efficient lighting
makes economic and
environmental sense.
But how should business
make the switch?
Advantages
lD
oes not consume any power once
switched off
lE
fficiency at least equal to that of fluorescent lighting
lE
xtremely long lamp life – up to 50,000 hours
lA
chieves maximum intensity immediately and should not flicker
lA
s bright as tungsten and fluorescent bulbs
lW
ide variety of light colours available.
lA
chieves full brightness immediately
lP
roduces little heat or UV light
lE
asily switched on and dimmed
lD
oes not contain mercury
lT
ypically offers comparable or better light quality than other types
of energy-efficient bulbs
lL
EDs are much cooler than incandescent lights, therefore,
reducing the risk of combustion or burnt fingers
lL
EDs are made with epoxy lenses, not glass, and are much more
resistant to breakage
ht?
many
in
s
e
m
o
lighting c in pros and cons
y
g
r
e
n
e
a
Low
are the m
e
r
e
H
.
s
form
of each
Compact fluorescent lights (CFLs)
are the most commonly used
energy-efficient light bulbs,
generating about 75 per cent
less heat than their conventional
equivalents. They last about 10
times longer than traditional
tungsten incandescent bulbs,
according to the US Government’s
EnergyStar scheme.
Advantages
l Cheaper
than other efficient lights
lE
asy to install in conventional sockets
lW
ide variety of colours and applications
lP
oorly
designed LEDs may not be long-lasting or efficient – look
out for bulbs accredited by government schemes such as the USA’s
EnergyStar mark
lC
an be harder to mount into light fittings
Disadvantages
start-up time
lC
ontain traces of mercury, so must be disposed of with care
lS
ome people do not like the colour of light they emit
040
What are the benefits?
The payback on lighting upgrades can be felt in as little as a year. Energy-efficient lighting
upgrades can reduce electricity consumption by up to 80 per cent.
Reducing the number and intensity of lights also lowers room temperature, decreasing the
need for air conditioning.
Visible results
Changing bulbs can boost morale and productivity
Turnover
Workplace design has a big impact on employee satisfaction – and turnover rates. Research
has shown that staff feel more settled when they can control light and temperature.
Halogen lamps give off warm
and pleasing light, and can be
readily dimmed using proper
controls which can provide visual
enhancements. But compared to
other more efficient lamps, they
won’t save as much energy and
can add heat load.
Advantages
least 25 per cent more energy
efficient than traditional incandescent light
bulbs
lP
rovides warm light tones
lM
ost similar in lighting quality to old-school incandescents
lW
orks with dimmers
lL
ess expensive to buy than LED bulbs and most CFLs
l Does
not contain mercury
lA
t
Disadvantages
energy-efficient than CFLs and LEDs
lS
horter lifespan
l Can
be more expensive when both replacement bulb costs and
energy savings are taken into account
lC
an become very hot – potential fire hazard
lL
ess
l Longer
What does it cost?
Replacing light bulbs is the cheapest and easiest way to
improve lighting efficiency. Firms that opt for solid-state
lighting such as LED technology will pay more at the outset,
but this can be a very cost-effective investment in the
longer term.
Some lighting controls contain sensors that automatically
dim bulbs when sunlight is optimal or when spaces are
empty.
Building owners can boost lighting efficiency by using
reflective paint and other surface coatings, reducing the
height of workspace partitions and simply rearranging
furniture.
Disadvantages
lE
xpensive
is rig
t
h
g
i
l
o
c
e
h
c
Whi
Lighting retrofits range from replacing a few bulbs to
buying high-tech systems for huge business premises.
What do company owners need to know?
Satisfaction
The eyes of a 60-year-old employee may receive only 40 per cent as much light as those
of someone half their age. Combining direct and indirect lighting or, better still, installing
dimmer switches, benefits physical and mental health by giving staff greater control over
working conditions.
Motivation
Lighting affects the human circadian system and can affect workers’ performance. Staff
productivity affects most businesses’ bottom lines far more than energy savings – reason
alone to install systems that maximise daylight and offer greater individual control.
Flexibility
Firms are increasingly adopting wireless lighting controls,
which offer building owners and facilities managers more
options when it comes to making the most of a space.
Reputation
When companies reduce the environmental impact of their
operations, it’s good to spread the word. Use environmental
and corporate social responsibility reports to tell others
about the changes – customers, clients and stakeholders are
unlikely to disapprove.
e?
g
n
a
h
c
o
t
e
m
ti
The decision to use
energy efficient lighting
is a logical step, but how
and when should it be
installed? Whether you
plan to wait until existing
light bulbs fail or invest in
an extensive refit, here are
some factors to consider:
lF
irms
can make significant
direct savings by switching to
efficient lighting because 20 to
50 per cent of the electricity they use
comes from lighting, depending on the
nature of the operation.
lL
ighting represents about 17.5 per cent
of energy use worldwide, according to
Pike Research’s report Energy Efficiency
Lighting for Commercial Markets.
lR
eplacing light bulbs – without
undertaking full-scale lighting design –
is the cheapest and easiest way in which
companies can make lighting more
efficient.
lB
usinesses with the resources to
undertake more extensive upgrades can
consider replacing all bulbs with LED
technology. Improved efficiency and
increased savings can make this a costeffective investment within a relatively
short timeframe.
lF
irms should consider installing lighting
controls that take advantage of daylight
harvesting – natural light coming in
through windows.
lL
ight bulbs aren’t the only factor to
consider. Companies increasingly install
lighting timers, dimmer switches, and
light and movement sensors to reduce
energy wasted on illuminating empty
spaces or those flooded with sunlight.
Use of such technology could reduce
lighting energy use by 50 to 75 per cent,
according to lighting manufacturer GE.
lR
educing the amount of lighting also
reduces the amount of heat it emits,
leading to further energy and money
savings in hot climates in which firms
are dependent on air conditioning.
Issue 4
041
Source: RealEnergyWriters.com and The Daily Energy Report
A bright
idea
Going retro
The light-emitting diode (LED) is
one of the most energy-efficient
and rapidly developing forms of
lighting technology. LEDs are the
size of a fleck of pepper and a mix
of red, green and blue bulbs is
typically used to make white light.
energy efficiency
energy efficiency
CUT EMISSIONS TO BOOST COMPETITIVENESS
Effective from April 2013, major industries will be subject to
new measures laid out in the Energy Conservation Act (ECA).
This summary examines the responsibilities, incentives and
opportunities for business
G
overnments and industry
globally are grappling with the
interrelated issues of rising energy
costs and increasingly severe effects
of climate change.
Key to these issues is a reduction of
energy consumption, as well as making
usage as effective and efficient as possible.
The benefits are numerous: from reducing
greenhouse gas emissions to improving
international competitiveness of industry,
and even enhancing nations’ energy security.
Targeting a 35 per cent improvement
in energy intensity for the country by
2030 from 2005 levels, as outlined in
the Singapore Sustainable Development
Blueprint, the Singapore government has
042
introduced the ECA to improve energy
performance, industry competitiveness,
encourage investment in energy efficiency
and ensure a coordinated approach to energy
efficiency standards across all sectors.
The ECA also serves to demonstrate
that Singapore is serious about meeting
its mitigation targets and international
responsibilities, much in stride with other
countries such as Denmark, South Korea,
and Japan, which have have similar energy
management requirements as the ECA.
So what’s in store for industry? The
mandatory energy management practices
outlined in the ECA will affect companies
using more than 54 TJ of energy annually.
This will mean areas of the economy such
as oil refining, petrochemicals, semiconductor
wafer fabrication and other large industrial
enterprises will be affected under the legislation.
Such enterprises will be required to
appoint at least one energy manager from
among its employees, monitor and report
energy use and greenhouse gas emissions,
and submit energy efficiency improvement
plans every year.
The new ECA comes after consultation in
2009 by the Ministry of Environment and
Water Resources and NEA with different
industry sub-sectors to understand their
energy management practices.
The legislation was gazetted in June 2012
and came into effect in 2013, thereby giving
further time for local industry to adjust to
the new measures. The NEA will administer
the energy management requirements for the
industry sector and non-compliances with
the ECA will result in fines.
While aspects like appointing energy
managers are new under the legislation,
the ECA also serves to complement a wide
variety of existing capacity development and
financial assistance measures.
Some existing capacity building initiatives
for industry include Singapore Certified
Energy Manager (SCEM) Programme, for
which a training grant is available to co-fund
about 80 per cent of the training cost of
the professional level SCEM programme.
Other financial incentives such as the Energy
Efficiency Improvement Assistance Scheme
co-fund up to 50 per cent of the cost of
engaging an energy consultant or energy
services company to conduct a detailed
energy assessment. Also, the Grant for
Energy Efficient Technologies co-funds up
to 20 per cent of the cost of energy efficient
equipment or technologies.
To assist companies in their efforts
to comply with the mandatory energy
management requirements under the ECA,
a new one-stop centre called the Energy
Efficiency Promotion Centre (EEPC) has
also been launched to provide an integrated
and responsive service to meet companies’
needs for improving energy efficiency.
While it will take time to shift industry
energy practices, the new ECA coupled
with the incentives, training, and assistance
available will prove useful to companies
as they take action. There are many
opportunities that companies can seize in the
process of pursuing energy efficiency.
According to consultancy Accenture,
companies wishing to go a step further can
investigate Enterprise Energy Management
systems that cut across the people, process,
technology, and governance aspects of their
operations.
Not only will such an approach help
companies meet the requirements of the
ECA, it will also ensure that companies
are more able to respond to changing local
or global energy circumstances by having
better access to real time information, that
energy management considerations are
firmly entrenched in decision making, and
that tools are in place to allow for better
management.
While this approach would require the
support of a company’s senior management
and take some upfront investment, with a
longer term time horizon in mind, it could
help realise cost savings and operational
“The ECA also serves
to demonstrate that
Singapore is serious
about meeting its
mitigation targets
and international
responsibilities, much
in stride with other
countries”
benefits. Taking into account the challenging
global business environment, with proper
implementation and alignment to such
standards as ISO 50001, taking such a
comprehensive and proactive approach
to energy management could advance
competitiveness.
Being energy nimble in the face of
economic uncertainties could prove quite
worthwhile. In one example, Accenture
cites how Dow Chemical improved energy
efficiency globally by 22 per cent between
1994 and 2005. This amounted to a cost
saving of US$4 billion. The company is now
seeking another 25 per cent improvement
from 2005-2015. In another case, United
Technologies Corporation cut its greenhouse
gas emissions globally by 46 per cent per
dollar of revenue from 2001 to 2006.
The benefits of improving energy
efficiency are also evident among companies
in Singapore. For example, Aventis Pharma
replaced its existing air-cooled chiller plants
with a more efficient centralised watercooled chiller plant and achieved an annual
energy cost savings of S$1.1 million. As
a result of the project, Aventis Pharma’s
electricity consumption was reduced by
32 per cent. In another instance, Total
Singapore recovered waste heat from its
process plant (which was previously rejected
to the atmosphere) to pre-heat process feed
and provide cooling to the entire facility. The
project resulted in a significant reduction in
the facility’s electricity consumption.
It is clear that with the arrival of the ECA,
industrial energy use in Singapore is tipped
for improvement in the years ahead. Whether
companies take a more compliance focused
response to the new legislation, or pursue
a proactive enterprise-wide approach to
energy efficiency improvements, there are
numerous benefits to taking action.
What you need to know
Energy Conservation Act (ECA)
This legislation came into effect in April
2013 and will shape how Singapore’s
major energy consuming industries will
make efficiency improvements
http://app2.nea.gov.sg/IndustrySector.
aspx
Energy Efficiency Promotion Centre
(EEPC)
To assist companies in meeting
mandatory energy management
requirements under the ECA, this onestop centre will:
lA
ssist companies on matters relating
to the mandatory energy management
requirements
lP
rovide general guidance and
related advice on energy efficiency
investments
lH
elp companies apply for incentives
and grants for energy efficiency
projects
lS
upport companies to undertake
integrated design for new facilities
l Identify service providers, industry
energy professionals and energy
efficiency experts to meet companies’
specific requirements
l Identify capability gaps and develop
initiatives to bridge the gap through
training and workshops
lA
ct as an exchange for energy
efficiency knowledge, skills, best
practices and share case studies
lF
orge strategic knowledge partnerships
to help companies integrate energy
efficiency as a strategic management
tool
Companies can get in touch with the
EEPC via hotline at 6731 9871 or email at
nea_eepc@nea.gov.sg
Energy Efficiency Improvement
Assistance Scheme
NEA co-funds up to 50 per cent of the
cost of engaging an energy consultant or
energy services company to conduct a
detailed energy assessment
http://tinyurl.com/avwqjkh
Grant for Energy Efficient
Technologies
NEA co-funds up to 20 per cent of the
cost of energy efficient equipment or
technologies
http://tinyurl.com/bxqg4x2
Issue 4
043
energy efficiency
industry innovation
training for the future
T
o achieve the vision for an
energy-efficient Singapore, it was
important to grow a sizeable pool of
skilled professionals in the energy
sector to support industry energy-efficiency
improvement plans.
To this end, NEA’s Singapore
Environment Institute (SEI) and the
Energy Sustainability Unit (ESU) at NUS
worked together to develop the training and
certification framework for the Singapore
Certified Energy Manager (SCEM)
programme in the lead-up to 2008.
The SCEM is conceived as an industry
manpower capability development initiative
to develop professional energy managers
to raise the energy performance of energyintensive industries.
SEI had played an instrumental role in
kick-starting the SCEM training programme
targeted at the industry sector as there
was a lack of local training expertise in
industrial energy efficiency then. Building
Construction Authority (BCA) Academy
concurrently took care of developing the
training modules for the building sector.
As part of the certification process, a
participant has to complete an intensive
144-hour training programme comprising
four core and two elective modules, and pass
examinations before earning the credentials
as a certified energy manager.
There are two certifiable training levels,
namely the Associate SCEM course that is
targeted at diploma-level candidates and the
Professional SCEM course that is targeted at
degree holders.
Today, the BCA Academy, the Sustainable
Energy Association of Singapore (SEAS)
and the Institution of Engineers Singapore
(IES) conduct the SCEM training at the
Professional level.
The BCA Academy and SEAS also
offer training at Associate level. Some
diplomas taught at Singapore Polytechnic
and Temasek Polytechnic have also been
accredited as SCEM Associate-level training
programmes.
Looking ahead, there are plans to
introduce SCEM programmes targeting
senior executives whose roles include
improving the energy efficiency of their
companies’ operations.
BERKELEY – SEI INDUSTRIAL ENERGY
MANAGEMENT EXECUTIVE PROGRAMME 2013
Learn from the leaders and improve your
organisation’s energy performance!
Presented by the Singapore
Environment Institute, from 19-26 June
2013, join in a top-notch programme
designed for senior executives with
energy management responsibilities.
This executive programme will be held
at the University of California, Berkeley
with experts also from the Georgia
Institute of Technology. Participants will
receive a global perspective in energy
management while exercising rigour
044
industrial facilities, research centres, and
participation in Energy Management
Congress West 2013 in Las Vegas will
help give participants a comprehensive
learning experience in the USA. For the
latest details as they are announced and
to register, please visit nea.gov.sg/sei
in local implementation. Top experts will
help set a clear, optimal path to energy
efficiency, enhance facility optimisation and
sustainability, and implement improvement
initiatives that improve ROI.
Lectures, discussions, site visits to
in collaboration with :
Plugging into know-how
The Energy Conservation Act is a major development for industry in
Singapore – and a new training facility is helping to build capacity.
ENVISION joins the inaugural class
I
t’s nearing 9am as a 30-strong crew
assembles at McKinsey Green Campus.
All engineers, they have travelled from
afar to Jurong Island, where they will be
equipped with the skills to spur operational
improvements at their home facilities.
The centre is a collaboration between the
NEA, Singapore Economic Development
Board (EDB), McKinsey & Company and
Petrofac.
Building materials firm Holcim has sent
the delegates, known as ‘coaches,’ from its
facilities across Southeast Asia – it’s hoped
they will act as ambassadors for change
upon their return to work.
As they assemble in a conference room,
course moderators prepare the day’s learning
materials and outline the content of the
intensive two-day workshop.
Holcim staff then introduce themselves;
many are meeting for the first time. As
a manufacturer of cement, aggregates
and asphalt, the firm has a keen interest
in reducing its energy consumption and
greenhouse gas footprint.
With Asia as one of its largest growth
regions, it seized the opportunity to train
and empower its workforce to make energyefficiency improvements. The opening of the
“It is the first initiative
of this kind for
Singapore and a first
for Asia. It’s about
helping companies go
green and lean”
Dr Mads Lauritzen, Green Campus Global Leader
McKinsey Green Campus was, therefore,
timely; based at the Petrofac training facility,
it delivers a variety of hands-on courses in a
live industrial environment.
Global challenges
The initiative is part of Singapore’s larger
push to develop industry capacity to meet a
growing number of energy challenges.
S Iswaran, Minister in the Prime Minister’s
Office and Second Minister for Home
Affairs and Trade & Industry, outlined the
macro-issues at play at the campus’ opening
in late 2012.
He said: “Global energy demand is
projected to grow by 28 per cent from 2009
to 2035, and energy market gyrations are
exacerbated by the increased volatility and
uncertainties in global energy markets and
oil prices.
“There is also rising pressure for global
action to reduce greenhouse gas emissions
Issue 4
045
industry innovation
and to mitigate climate change. As a small
country with a relatively large industrial
footprint, Singapore is also studying how we
can reduce our energy demand and carbon
footprint as part of our sustainable economic
growth.
“To this end, the Singapore Government
has invested in various efforts to encourage
more efficient energy use and to build up
capabilities in energy management.”
The scale of industrial activity on Jurong
Island made the site of particular interest.
Consultancies such as McKinsey were
already working to highlight energy efficiency
opportunities, develop best practices and
explore infrastructure planning.
With sites elsewhere in the world, each
focusing on different aspects of operational
excellence, it was a well-placed partner for
the campus. Andrew Tan, NEA’s CEO, said:
“As part of our ongoing efforts to promote
046
industry innovation
energy-efficient practices, NEA is pleased
to work with knowledge partners such as
McKinsey through initiatives such as the
Green Campus to disseminate best practices
in industry processes that lead to more
efficient use of energy and cost savings.”
NEA has been forging strategic
partnerships with thought leaders to sustain
Singapore’s efforts in energy efficiency as an
initiative under E2PO.
McKinsey is one of NEA’s strategic
partners under the Energy Efficiency
National Partnership (EENP) and it has
been working with the NEA and the EDB to
develop executive-level training programmes
for EENP partners.
Oliver Tonby, Managing Partner of
McKinsey Southeast Asia, said: “The
establishment of the Green Campus as
part of McKinsey Innovation Campus in
Singapore underscores our commitment
to bring the best of McKinsey’s global
experience to companies in Singapore
and across Asia to help them address their
toughest challenges.
“Our decision to locate these new
capabilities in Singapore reflects the growing
focus on innovation in this market, the
commitment to energy efficiency and a drive
for excellence.”
Experiential curricula
By late morning, the Holcim staff have
completed briefings and are getting stuck
into coursework.
Representatives from various operational
teams are assuming the roles of staff at
case study firm Omco in order to explore a
number of energy efficiency exercises across
the facility. They have been tasked with
cutting energy use by 30 per cent.
To simulate a real-world learning
environment, McKinsey Green Campus
features distillation columns, fuel gas
systems, flare systems, tank farms and
furnaces – common fixtures in many
industrial facilities.
Typical curricula at the campus covers
a number of topics, from management
systems such as performance monitoring to
best-practice toolkits on technical systems
involving the energy value chain. Critical
‘people systems’ such as communication,
and influencing techniques that can make or
break operational behaviour, also form an
important component.
Coursework can be further tailored to
the needs of staff from line managers to
senior executives, and for people working
in a large number of industries including
oil refining, gas processing, petrochemicals,
pharmaceuticals, power generation, district
cooling, waste treatment, metals processing
“The Green Campus
has been specifically
designed for the sole
purpose of bringing
cutting edge concepts
and international
expertise to train
managers and change
agents in energy
efficiency”
Dr Mads Lauritzen, Green Campus Global Leader
and large-scale food and beverage processing.
“The Green Campus has been specifically
designed for the sole purpose of bringing
cutting edge concepts and international
expertise to train managers and change
agents in energy efficiency,” said Dr Mads
Lauritzen, Managing Partner in McKinsey’s
Southeast Asian operations practice and
Green Campus Global Leader.
“It is the first initiative of this kind for
Singapore and a first for Asia. It’s about
helping companies go green and lean.”
Enhancing initiatives
Energy expenses are a significant driver for
the cement industry. At Holcim, 40 per cent
of the cost of cement production has been
attributed to energy use.
To tackle rising prices, the firm aims to cut
energy consumption by 10 per cent by 2015.
It has launched the Energy Activation
Issue 4
047
industry innovation
across Regional Network (EARN)
programme, which aims to foster a ‘lean
energy’ culture in the Holcim ASEAN
Region.
Measure for
transparency
Create
competitive
advantage
EARN
(Energy
Activation
across Regional
Network)
Drive on-ground
cultural change
Best pratice
sharing through
regional
communities of
excellence
Develop
capabilities of
both people and
infrastructure
Create academy
and equip it to
drive energy
projects
EARN is a transformation initiative to build a
lean energy culture and enhanced competency
to achieve energy management excellence
048
EARN, which began in 2012, covers 46
plants across Southeast Asia, exclusive of
operations in the Philippines.
A sustainable transformation requires
more than good technical systems and tools,
however, and the programme also explores
ways to enhance hard and soft capabilities
at plants with the aim of forming energy
efficiency communities of excellence.
Getting staff involved at the McKinsey
Green Campus is an important step in
improving the company’s energy performance.
Engineers Valya Serivalsatit, who works at
a Holcim subsidiary in Thailand, and Kholid
Mawardi, from Indonesia, are attending
McKinsey Green Campus through the
EARN programme.
They are responsible for taking a
leadership role on energy efficiency and
other corporate excellence initiatives at their
respective facilities. While at the campus,
they and their counterparts will hone their
identification skills for many pieces of
industrial production equipment.
During a walk-through exercise to learn
more about plant performance gaps, the
“It is useful to learn
more about the
concepts and also
how to find the gaps in
performance”
Kholid Mawardi, Holcim engineer from Indonesia
two share their feedback on the programme.
“The exercises are quite useful for helping
us reflect on plant operations back home,”
Serivalsatit said.
“The process of talking with people and
interviewing during role play is key because the
dialogue often reveals efficiency opportunities
that might not otherwise be apparent.”
Mawardi agrees.
“It is useful to learn more about the
concepts and also how to find the gaps in
performance,” he said. “It would be ideal if,
one day, we could have a model cement plant
in this kind of setting to learn from in order to
get even more detailed [knowledge] in relation
to our operations.”
The Holcim ASEAN Region team has
identified five ‘pillars’ it believes will be
fundamental to addressing EARN’s aims and
support a systematic approach to improving
energy efficiency.
The approach begins with a transparent
measurement of energy consumption and
best practices. The data collected will be
analysed and used to identify ‘best in class’
areas and potential annual savings.
Aidan Lynam, Area Manager at Holcim
Ltd, said: “This allows us to chart each
plant’s progress and to keep our eye on the
goal. Also, as this is a regional effort, each
plant will be able to see how it compares
with other plants in the region and draw
inspiration from best practice.
“It is the cornerstone of the EARN
programme and allows for effective
quantification, prioritisation and comparison
of energy opportunities across all plants. In
essence, it is a strong catalyst for EARN.”
Regional communities of excellence,
“The exercises help
us reflect on plant
operations back home”
Valya Serivalsatit, Holcim engineer in Thailand
such as the ones in Thailand and Indonesia
that Serivalsatit and Mawardi respectively
champion, have been established to
promote the sharing of best practice for
each pillar. This is more than a management
driven programme for Holcim, so the next
phase will pave the way for the construction
of model plants, the creation of academies,
and for staff to be equipped with the
expertise needed to drive energy projects.
Developing people capabilities and
investing in the necessary infrastructure are
crucial aspects of the programme. In many
respects, involvement with the McKinsey
Green Campus will pave the way for further
developments.
Learning modules have been created to
build employees’ capabilities and raise their
accreditation level from ‘green practitioner’
to ‘green architect.’
A model plant will be established to
facilitate energy-efficiency learning in an
authentic environment.
The EARN programme is still in its
infancy, but participants are already
reaping rewards. Its results have motivated
employees in the region and enhanced their
‘can do’ attitude – just the start of an exciting
journey towards energy management and
boosting competitiveness in the industry.
By the end of the first day’s workshops,
Holcim staff have gained a rigorous
introduction to quantifying energy load
curve opportunities, evaluating projects,
tracking KPIs with a view to saving energy
and tailoring technical modules to individual
plant needs.
They have also had a crash course on
communication and conflict management.
With an equally packed second day to
come, the participants’ visit is equipping them
to meet energy challenges of the future.
Issue 4
049
industry innovation
“Overall, sustainability
needs to be
communicated as a
factor of improvement
in everyday life,
building on people’s
values and aspirations”
The evidence base and business engagement
has been growing for some time.
050
Heavy metals
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
ls
an Ind
d us
m tr
in ia
in l
g
Fo
od
pr
od
uc
er
s
Co
an ns
m tru
at ct
er io
ia n
ls
0
et
a
Barriers to change
Current barriers to change for business
regarding NCM are both at the macro-
Air pollution
General waste
m
Value of natural systems largely invisible
The invisibility of corporate externalities is
a root cause of many errors of judgement
across economics, ecology and governance.
The main reason for this is the economic
Water abstraction
VOCs
450,000
ity
the world is currently experiencing an
unprecedented depletion of natural capital.
The larger context of business impacts
How great is the risk to business? To provide
greater context to the Organisational Change
for Natural Capital Management findings,
Figure 1, based on a 2010 study by the
UN Principles for Responsible Investment
(UNPRI), illustrates the environmental costs
of the top 3,000 listed companies in 2008.
Economically these companies generated
Natural resources
Oi
l
pr an
od d
uc ga
er s
s
Dr Dorothy Maxwell and
Charlotte Masiello-Riome
Greenhouse gases
ric
Contributors
invisibility of most of nature’s services
and their resulting exclusion from most
policy and business decision making:
they simply aren’t accounted for. Natural
Capital Management (NCM) is about
understanding these environmental
externalities and including them in business
decision making.
Business externalities are increasingly
being internalised as costs, such as
greenhouse gas emissions, waste generation
and resource use, depending on which
countries a company or its supply chain
operates in.
Figure 1
ct
B
usinesses rely on natural
capital – resources and ecosystems
that provide critical provisioning
services, such as water and food,
and regulatory services including climate
regulation, water purification and flood
management. Sixty per cent of the world’s
ecosystem services have been degraded over
the past 50 years and we are now committed
to a four-degree global temperature rise and
the societal implications that brings.
For businesses to be viable in the long
term, the natural capital upon which
they depend needs to be maintained, yet
Pioneers grasp the risk to business
Among this small group of pioneering
companies recognising the growing business
case for NCM, there is a shift to building
it deeply into their business within the time
horizon of the next three years. By doing
so, there is the view that they will be much
better positioned than other companies to
manage and thrive in a resource-constrained
world that is already here and will hit
business hard in three to five years.
The study identifies that delaying the
measurement and management of natural
capital carries a significant business risk for
companies on availability of key raw materials
and maintaining competitive advantage. In
particular climate regulation, renewable energy
and the availability of freshwater, fibre and
food were identified as the most important
natural capital risks in the near term.
US$21 trillion per year. The global
environmental externality costs of this
economic activity were estimated at US$
2.15 trillion/year with over 60 per cent
coming from the energy, extractive, food
and construction sectors. In addition, the
wider evidence base shows sectors such
as transport, tourism, timber and some
‘fast moving’ consumer goods, such as
clothing and electronics, being among the
most significant environmental impact
contributors when embodied impacts across
the supply chain are included.
Ele
New research shows delaying the measurement and management of
natural capital carries a significant business risk for companies’ competitive
advantage. Dr Dorothy Maxwell, Director of TEEB for Business Coalition,
shares the organisation’s latest findings
level, such as the lack of government
regulation and customer demand, and
within organisations. In particular, internal
challenges include establishing the relevance
of NCM and a lack of harmonised methods
to measure, prioritise and integrate natural
capital into business decision-making.
NCM is a business innovation that changes
business processes, practices, systems
and strategies, therefore, a major driver of
organisational change. This is something
many mainstream businesses hesitate to
embrace, but will nonetheless grapple with in
the coming years.
Pavan Sukhdev, Chair of the Advisory
Board of TEEB for Business Coalition
says: “This study identifies the absence of
measurement of natural capital externalities
as the most significant barrier in the road
from recognition through evaluation
to adoption and leadership in natural
capital management. It lays the grounds
for identifying the largest externalities
of business as a first step towards their
recognition and management.”
Environmental external cost (US$million)
BUSINESS ON THE BRINK
Understanding business motivations
To uncover deeper understanding of
business motivations towards NCM, a new
report called the Organisational Change for
Natural Capital Management: Strategy and
Implementation was commissioned by the
TEEB for Business Coalition to explore
a model for organisational change. Its
goal was to assess business practices at
leading companies that were implementing
behavioural and organisational change for
natural capital management.
The study is based on data collected by
Innovastat from 26 pioneering companies –
60 per cent of which have revenues in excess
of US$10 billion – across nine industry
sectors. It provides real-life intelligence from
these businesses that supports the growing
business case for managing natural capital.
Source: UNPRI
Issue 4
051
industry innovation
Growing concern for business models
There is a growing concern from business
that existing business models are not
equipped to measure these real costs and a
shift to internalise sustainability in economic
terms in business models is underway. The
intention is that, by understanding the real
costs and benefits of environmental and
social impacts from business activities, these
become material and enable more informed
decision making in terms of business risks
and opportunities.
Environmental and social externalities
valuation provides the method for this and
can be applied in several ways by business
stakeholders. It will enable measurement of
the full costs and benefits of organisations’
environmental and social impacts, and
those across supply chains, to inform
better management decisions. It can be
incorporated in corporate reporting to
enable full disclosure and clarity on the
materiality of environmental and social
impacts to the business, especially at
board level.
Accountants in particular play a strong
role in incorporating natural and social
capital accounting into mainstream business
reporting, such as balance sheets and
The real cost of your gear
diligence when assessing client portfolios
and ultimately investment decisions.
Pension funds and insurers in particular
have been seeking more corporate disclosure
for GHG emissions, water use and
biodiversity for risk management reasons.
Overall, these applications are a major lever
for market transformation on sustainability.
As Figure 2 shows, Puma’s Environmental Profit and Loss
(EP&L) report reveals that its total sales of €2,706 million in
2010 equated to a total environmental impact of €145 million,
representing 18 per cent of sales
Creating a net positive impact
By internalising the full costs and benefits
of environmental and social impacts, the
real costs and values can be incorporated
in business decision making. This can drive
business having a ‘net positive impact’ as
distinct from the ‘doing less badly’ mode
that is the status quo. This changes the
business case over time as markets start to
drive sustainability improvement, as distinct
from driving their degradation which is
the present case. Ultimately, this will drive
business behaviour change.
profit & and loss statements. For investors,
it can more comprehensively inform
Environmental, Social and Governance
(ESG) criteria to enable better due
Figure 2
Water use
GHGs
Waste
Total
€ million
€ million
€ million
€ million
€ million
€ million
33%
32%
26%
7%
2%
100%
Total
47
47
37
11
3
145
100%
Puma operations
<1
7
<1
1
<1
8
6%
Tier 1
1
9
<1
1
2
13
9%
Tier 2
4
7
<1
2
1
14
10%
Tier 3
17
7
<1
3
<1
27
19%
Tier 4
25
17
37
4
<1
83
57%
EMEA
4
8
1
1
<1
14
10%
Americas
2
10
20
3
<1
35
24%
Asia/Pacific
41
29
16
7
3
96
66%
Footwear
25
28
34
7
2
96
66%
Apparel
18
14
3
3
1
39
27%
4
5
<1
1
<1
10
7%
The TEEB for Business Coalition is a global, multi-stakeholder platform
to support development and uptake of harmonised, practical methods
to value environmental and social externalities for use in business
decision making. Launched in Singapore on 6 November 2012, the
TEEB for Business Coalition is the business application of G8 and
UNEP supported TEEB Programme. The Coalition is made up of global
leaders on the theory and practice of natural capital valuation from
business, policy, practitioners and NGOs. For more information, visit
teebforbusiness.org
Accessories
Land use Air pollution
% of total
Source: Puma
figure 3: Fruit juice supply chain impacts
Illustration of the fruit juice supply chain, detailing a common consumer product’s environmental impacts. Other industries, such as
mining or palm oil production, have supply chains of even greater complexity, with more significant environmental impacts
Fruit growing
Water use through a fruit juice supply chain
Total waste consumption = 3,500,000m3
...and greenhouse gases
Total GHG emissions = 22,000tCO2e
Packaging
supply chain
Processing
2%
Shipping logistics
0%
Bottling
3%
Packaging
supply chain
7%
Distribution
0%
Use by consumer
0%
Reycling
and disposal
Distribution
Bottling
Fruit growing
Shipping logistics
Use by consumer
6%
4%
Processing
0%
1%
16%
14%
Reycling
and disposal
1%
24%
34%
88%
052
Issue 4
053
techability
Carbon dioxide uptake by forests,
biomass plantations and degraded
mine lands that are restored
Dispersed CO2
Twelve technologies to
curb carbon emissions
These promising technological inventions could make
a real impact on greenhouse gas emissions
1 Offshore wind power
The offshore wind market has tremendous
potential for growth.
Annual investments are expected to
increase from US$3.7 billion in 2011 to
US$13.6 billion in 2020.8
Although the UK and Germany currently
dominate the market, Asia is also starting
to embrace offshore renewables, and last
October Nanyang Technological University
(NTU) hosted the Offshore Renewable
Energy Conference 2012.
With its established oil and gas industry,
Singapore is in prime position to develop
offshore renewables, whose installation
techniques and infrastructures bear many
similarities to those developed in Europe
for offshore wind power.9
2 SuperGrid
The European Union is exploring
the possibility of connecting
various member states with
a high-voltage direct current
power grid. Called SuperGrid,
it will distribute electricity and
liquid hydrogen simultaneously
via long-distance electric
power lines, which will become
superconductive as the hydrogen
acts as a cryogenic coolant. The
SuperGrid would lower the cost of
power in all participating countries,
which could include nations in
Eastern Europe, Central Asia and
North Africa. Designed to deliver
power from large renewable
energy clusters to existing grids at
centres of consumption, it would
provide the infrastructure for a
single electricity market.3,6
3 Second-generation
bioenergy
Most ‘first generation’ biofuels
currently on the market are
produced from food crops such as
grains, sugar beet and oil seeds.
But non-edible, fibrous parts of
many food crops contain large
reservoirs of energy that provide
real potential for conversion into
biofuels. Called lignocellulosic
biomass, these sources could hold
the key to supplying society’s
basic needs for sustainable
production of liquid transportation
fuels without adversely affecting
food supplies or worsening
environmental problems.14-17
4 Electrified powertrains
Powertrain technology is
concerned with the components
that generate power and deliver it
to the road surface.
Since advanced composite
materials greatly reduce a car’s
weight and the power needed
to propel it, electric powertrains
become much smaller, hence
economically viable.
While available models such
as the Chevrolet Volt and the
Nissan Leaf feature electrified
powertrains, pushing the
boundaries of steel vehicles, BMW,
Volkswagen and Audi are soon
to launch electrified cars with
advanced composite bodies, with
Daimler-Chrysler and others hot on
their heels.
It is thought such vehicles have
the potential to reduce US vehicle
fuel consumption by 95 per cent
by 2050.4
References
Dynamics of the Industrial Energy Efficiency Market: A Strategic Perspective, Frost & Sullivan Asia Pacific, Ravi Krishnaswamy, Vice President, Energy & Power Systems Practice, February 2013 2 ewea.org/blog/2013/01/
forecasting-the-future-at-ewea-2013 3 smartwind.co.uk/supergrid.aspx 4 Rocky Mountain Institute 5 Centre for Alternative Technology 6 friendsofthesupergrid.eu 7 Affordable, clean, secure energy solutions for 2050,
Energy Technologies Institute, 2011 8 European Wind Energy Association 9 A Win-Wind Situation: Opportunities in the European Offshore Wind Industry, IE Insights, Vol. 4, October 2012 10 bosch.com/en/com/innovation/
1
054
5 Carbon fibre composite
Heavy cars take
more energy
to move.
Making cars
lighter is the
single most
effective way
of dramatically
and immediately
improving their fuel efficiency,
regardless of vehicle type, size
or fuel. Carbon fibre composite is
made from very thin filaments of
carbon atoms which have been
bound with plastic polymer resin
by heat, pressure or in a vacuum
to form a strong, lightweight
material. The more densely this
fibre is woven, the stronger the
resultant material, or composite,
will be.13
8 Carbon capture and storage
Carbon capture and storage (CCS) technologies
are aimed at reducing greenhouse gas emissions
from fossil-fuel power stations and industry.
CCS involves capturing carbon dioxide and
storing it through a variety of means to prevent it
from reaching the atmosphere.
Separation and collection of CO2 reached a
new milestone when researchers in the US were
able to capture it at purity of 99.5 per cent for
a successful 200-hour test from the burning of
sub-bituminous and lignite coals, commonly used
in power plants. It was a major step towards
commercialisation of the technology.12
Carbon-based
products
Capture &
separation
Pond with
bacteria
CO2
Soil
amendments
Pipelines
Coal bed
methane
formations
Geological
formations
Depleted oil or
gas reservoirs
Deep aquifer
6 Concentrated solar power
Concentrated solar power (CSP)
makes use of a system of mirrors
or parabolic lenses to focus sunlight
on a central, oil-filled tube. Trapped
heat is then sent through a system
to boil water and produce steam
which drives a turbine, generating
electricity. Abu Dhabi recently
opened Shams 1, the world’s
largest CSP plant covering 2.5 km2,
capable of generating 100mW to
power 20,000 homes.
9 Hydrogen and fuel cells
Vehicles powered by hydrogen
fuel cells could offer a compelling
alternative to fully electrified cars if
such technology could be supported
by a robust, affordable and widely
distributed hydrogen-fuelling
infrastructure, according to the US
based Rocky Mountain Institute
(RMI). Fuel cell vehicles (FCVs) have
the potential to significantly reduce
greenhouse gas emissions.
Polymer Electrolyte Membrane
(PEM) fuel cells used in cars, also
called Proton Exchange Membrane
fuel cells, use hydrogen fuel and
oxygen from the air to produce
electricity. If the fuel cells are
stacked, they provide enough
energy to power a vehicle.
The advantage of hydrogen cells
over conventional batteries is their
lower weight combined with greater
energy capacity, which potentially
makes them of great benefit to
larger, heavier vehicles requiring a
substantial amount of power.4,5
7 Photovoltaic cells
Photovoltaic (PV) panels,
also known as solar electric
panels, convert sunlight directly
into electricity. Costs have
plummeted recently, and solar
offers significant long term
economic benefits. Stanford
scientists recently developed a
solar-capturing device based on
photon-enhanced thermionic
emissions (PETE) which are
100 times more efficient than
currently available technologies.
This technology utilises a
semiconductor to produce
electricity by harnessing full
spectrum of light and could make
solar plants more efficient.
10 Hydroelectricity
All streams and
rivers flow
downhill.
Hydropower
systems
harness this
potential energy,
converting it into
kinetic energy via a turbine that
drives an electricity generator.
The more water there is, and the
greater the height from which it
falls, the greater the amount of
electricity generated. Small, or
micro-hydroelectricity, systems
can produce enough electricity for
lighting and electrical appliances
in an average home.5
11 Gasification
One significant
Clean Coal
Technology
avoids burning
the fuel
altogether.
Integrated
gasification combined cycle (IGCC)
systems cause steam and hot,
pressurised air to be combined with
coal, triggering a reaction that forces
its carbon molecules apart. The
resulting gas, a mixture of carbon
monoxide and hydrogen, is then
burned in a gas turbine to generate
electricity and steam. Gasification
is one of a number of processes
dubbed ‘waste-to-energy’.
12 Graphene supercapacitators
One of the major drawbacks
for technology such as electric
vehicles is storing the energy
needed to power them. In 2002,
Russian scientists won the Nobel
Prize for Physics for discovering
graphene, a material made of pure
carbon. Its hexagonal structure
is similar to that of graphite but
in a sheet that is just one atom
thick. More recently, two UCLA
researchers18 discovered the
substance could be used as an
efficient device that functions in a
similar way to a battery19.
The breakthrough could be a
game changer as it cuts charging
time dramatically, stores energy
successfully and does so while
being based entirely on organic
matter.
While the technology is still
in its infancy, it could potentially
revolutionise the way we power
any number of items, from the
iPhone to the electric car.
insidebosch/powertrains_of_tomorrow/electrical_powertrains_of_tomorrow/electrical_powertrains_of_tomorrow.html 11 fueleconomy.gov/feg/fuelcell.shtml 12 www.lifesciencesworld.com/news/view/225667
composite.about.com/od/aboutcarbon/a/What-Is-Carbon-Fiber.html 14 greenpeace.org/international/en/campaigns/climate-change/solutions/bioenergy 15 Sustainable Production of Second-Generation biofuels –
Potential and Perspectives in Major Economies and Developing Countries, International Energy Agency, February 2010 16 biocore-europe.org/page.php?optim=what-is-lignocellulosic-biomass 17 bioenergyconsult.com/what-islignocellulosic-biomass 18 www.fastcodesign.com/1671917/watch-2-scientists-accidentally-discover-a-world-changing-super-material?partner=newsletter 19 www.photonics.com/Article.aspx?AID=50784
13
Issue 4
055
techability
Innovative real-time weather
monitoring system launched
T
New York’s carbon emissions made visible
he Meteorological Services
Singapore (MSS) has embarked
on a project to develop a network
of real-time automated weather
stations (AWSs) to provide accessible data
in real time all over the city-state.
Called the AWS Network, it comprises
64 automated weather stations, located
across the island. All stations have sensors
that measure rainfall and 22 stations are
equipped with additional sensors that
measure wind, humidity, temperature and
atmospheric pressure. Sensors to measure
incoming infrared radiation are installed
at five stations; two others measure total
ultraviolet radiation.
MSS’ Meteorological Station at Changi
has a range of special sensors that measure
the Ultraviolet (UV) Index, height of base
of cloud, visibility, soil temperature at
various depths and an evaporation sensor
to measure the rate of evaporation. All the
data are transmitted wirelessly to MSS’
Data Centre at Changi Airport.
An integral part of the AWS Network
is the data visualisation or graphical-user
interface software that enables viewing of
both current and past weather information
in various graphical and text formats. The
AWS Network can emit audible alerts
whenever a meteorological parameter, such
as wind speed within a 10-minute period or
the amount of rainfall in an hour, exceeds a
predetermined threshold.
The real-time weather observation
data from the AWS Network and the
accompanying visualisation or graphical
user-interface is an important addition
to support and enhance the operations at
MSS. The AWS Network provides weather
forecasters and research scientists with
high data availability and ease of access
to continuous high-resolution data for
monitoring changes in current weather
patterns as well as long term climatic
trends.
With wireless telecommunications
technology, the AWS Network provides
convenient access to real-time weather data
over all sectors in Singapore. Near realtime rain, temperature, humidity and wind
data have been made available on NEA’s
MyEnv iPhone app and on Weather@SG.
Accessible at http://weather.nea.gov.sg/
ForecastToday.aspx, the website offers realtime weather information forecasts.
MSS will be launching a website for
the AWS Network. It is being designed
with the general public in mind, and it is
hoped the improved accessibility and data
resolution from the AWS Network will
enable the general public to better prepare
for weather changes.
The data from the AWS Network will
form an integral part of NEA’s Smart
Environment System.
Street-level view of 10-metre spheres of carbon
dioxide emerging once every 0.58 seconds
I
ssues such as climate change are
often difficult for people to understand
because causes of the problem, such as
carbon dioxide emissions, aren’t visible
to the naked eye. As a result, motivating
them to act can be difficult.
Carbon Visuals created a video with
support from Environmental Defense Fund
to help make emissions more tangible.
Using New York City as a case study, it
tracks an entire year’s worth of emissions
to demonstrate exactly how much CO2
was produced. The captivating result is an
engaging tool to help educate
stakeholders on the need for
emissions cuts. Scan the QR
code on the right with your
smartphone to check it out.
056
A year’s carbon dioxide emissions from New York City: 54,349,650 one-metric-ton spheres
Issue 4
057
engagement
engagement
“Any conversation
should be focused
on the problems and
challenges being
experienced in the
organisation and the
form in which they can
be addressed”
acted to support the issues being embraced
by their staff.
What started to take shape was a green IT
experiment that evolved organically in the
subsidiary. It was triggered with no policy or
corporate headquarter directives, merely the
interest of their staff and local management
to see what could be possible. What
succeeded as a local initiative eventually
launched worldwide to the corporation’s
operations in 50 countries. The company’s
initiative involved eight progressive steps:
CHALLENGING decisions
What are the best ways to shift business decision making? Speaking at a recent
Professional Sharing Series event hosted by NEA’s Singapore Environment Institute,
Professor Steve Elliot from the University of Sydney shared engagement approaches
between government and business to tackle climate change
B
oth governments and businesses
recognise the importance of a
collaborative process involving
policy makers, business leaders and
citizens to tackle pressing challenges such as
climate change.
As the World Business Council for
Sustainable Development (WBCSD)
outlines, also important are creating
fundamental shifts towards value placed on
sustainable growth, and to enable policies
and tax regimes that incentivise businesses to
make investment and operational decisions
that look beyond the bottom line. But what
are the challenges that lie ahead – and what
role can firms really play?
058
First, they can work towards solving the
problems that are causing environmental
deterioration. Second, they can work
towards enabling solutions as they have
resources that are beyond the reach of many
governments. They have the capability to
apply those resources to pressing problems,
and all they need is the motivation and
incentives to do so.
Changing business a challenge in itself
A large part of motivating business as a force
for change involves business transformation,
and change is seldom something that people
like to do. As American author Mark Twain
put it, “I’m all for progress, but it’s change I
don’t like.” Painting lucid goals that people
can aspire to can help motivate them to
change, but change for its own sake is rarely
an effective approach.
As a recent McKinsey survey has revealed,
only about 30 to 40 per cent of organisations
succeeded or partly succeeded in achieving
their goals. Other studies also indicate that
the gap between expectations of significant
change and the capabilities to manage that
change has tripled since 2008.
Periodically, forces such as globalisation
and the IT revolution have succeeded in
reshaping the business world. In the longer
term, complex issues such as climate change
and its impacts are likely to rival both.
It is an era that is already evolving quite
quickly. Business thought-leaders such as
Michael Porter and Peter Bakker, president
of the WBCSD, believe that a revolution in
capitalism is needed to effectively meet such
challenges. But present circumstances are
still difficult to influence inside businesses.
Broadening business horizons
There’s no point in going to an organisation
and telling them what you think they should
do. Any conversation should be focused
on the problems and challenges being
experienced within it, and in what form they
can be addressed.
Using this approach, a major IT company
explored how environmental sustainability
could be important to its business. The
company, based in Australia, was a
subsidiary of a larger business with US$15
billion in revenues, with more than 50,000
staff in 50 countries. Staff had raised the
importance of climate change and energy
efficiency to management, and management
Awareness: Identifying issues and their
potential relevance
Investigation: Analysing problems, scope,
relevance and impact
Determination: Identifying drivers, projects
and business cases
Action: Projects to cut energy use, prevent
pollution and develop capabilities;
monitoring and assessment
Evaluation: Determining organisation-wide
metrics and processes measuring actual
contributions
Proliferation: Diffusion of solutions for
internal energy and pollution reduction;
environmental sustainability reporting
Integration: Innovative organisation-wide
environmental sustainability solutions;
applying new ICT and environmental
management systems
Opportunity: Environmental sustainability
strategies with existing and new clients
In just one example from the case study
company led by staff, installation of a
US$428 device lead to a reduction in annual
energy costs of US$90,000. Competition
between branches grew and successes
snowballed in the company, with many
initiatives being launched. Support from
management grew with each success. While
some of the projects eventually required
budgets so they could be implemented,
the environmental sustainability manager
reported that, for the funds expended, cost
benefits of two to three times were expected.
Engagement and a competitive spirit lead
to reinforcement of the activities by creating
a structure around it. In the IT company
example, the CIO oversaw four divisions
– IT operations, business excellence,
environmental sustainability and strategic
initiatives, with managers for each respective
area. To integrate these processes and
maximise organisational benefits, each of the
four managers only received performance
bonuses if all had reached their targets.
With the massive improvements to core
business and cost savings, soon the efforts
of the subsidiary came both on the radar of
the parent company, as well as clients – both
new and potential. The company’s culture
had been transformed.
Key lessons in business transformation
Companies’ motivations are diverse:
competitive opportunities and threats,
corporate social responsibility, regulatory
compliance, social entrepreneurship,
stakeholder judgement and numerous other
factors come into play.
The important thing to stress in terms
of desired outcome is that stopping the
degradation of our environment and
innovation is the means of achieving that
environmental outcome. But a well planned
business innovation can produce multiple
benefits. For example, an innovation to cut
wastage and streamline business processes
may achieve both cost and environmental
savings, and both can be important to
improving core business.
Global surveys of chief executives
often identify environmental issues of
important concern. But uncertainties about
environmental sustainability and how to
respond can significantly inhibit action.
Outside a company, seeing other examples
of exemplary case studies of action can be
used to demonstrate what is achievable.
Inside a company, engaging staff is critical.
Working with pioneers can be helpful to
get action started, but they will require
assistance and, in some cases, incentives.
Once some small initiatives are underway,
they can often be self-funding with nearterm paybacks – think of the reduction
in power, water and waste, for example.
But it is important to realise that lasting
benefits will need to affect the core business
processes and be supported by executives.
Efforts at the margins will not necessarily
produce big results in the long term, nor
justify a ‘sustainable’ enterprise. Senior
Issue 4
059
engagement
management needs to help set directions,
build on successes, establish targets and
continually engage and empower staff.
Merely taking a top-down approach is not
effective and, in many cases, staff have a
better handle on real problems and solutions.
To reinforce organisational culture and
behaviour change, performance reviews,
rewards and incentives may need to be
re-examined. In the same vein, competition
between business units or locations can
be used to help motivate engagement and
productivity improvement. Benchmarking
across units, setting targets using business
relevant metrics – think: cost savings, amount
of energy saved – and reporting progress can
help reinforce this culturally.
Implications for policy planning
With this business climate in mind, from
the policy point of view it is important to
“What is important is to acknowledge and publicise
environmental challenges, much in the way that
Singapore’s National Climate Change Strategy has
done, to make everyone aware”
companies in each sector and sharing best
practice.
Beyond partnering with business, policymakers should also reach out across different
agencies and ministries to break down
silos and share public-sector experiences,
enabling government to become an active
part of the solution.
note that command-and-control regulation
targeted at specific outcomes can stymie
support for wider achievement of a
sustainable economy. Regulation can, too
often, focus on what’s easy to monitor, not
necessarily what’s important to fix. Overregulation often causes desired outcomes to
be overlooked completely.
Such command-and-control policy can
become too specific and, by doing so, become
less effective for particular companies and
Conclusion
With growing global challenges such
as climate change, building effective
environmental business transformation
enabled by sound policy has never been
more crucial. A winning formula would be to
address climate change challenges by cutting
negative environmental impact while cutting
costs and improving productivity. Looking
towards the long term with this approach,
capabilities for mitigation and adaptation in
business and society can be realised.
reach, especially when motivated
by market reasons. It can also
achieve outcomes in a short
period of time that governments
with limited budgets and
conflicting priorities might not be
able to do.
Q&A
with Prof
Steve Elliot
In your experience, what is the
real role of business as both
the cause of and solution to
environmental issues such as
climate change?
It is generally accepted that
business can serve as a
cause in terms of its current
practices involving pollution
and degradation of our
environment. But business can
address problems by changing
its practices and by applying its
resources with multi-national
060
What aspect of corporate culture
do senior executives find most
difficult to change?
It depends on the corporate
culture and organisation.
Operational cultures can generally
be changed more easily, as
processes and practices often
change quickly. On the other
hand, belief systems such as
objectives of high service or
corporate social responsibility
are more difficult to challenge
because people change their
belief systems less frequently and
doing so takes more effort.
What model of corporate
transformation is most
successful?
The key lesson would be that
it has to be specific to the
organisation. You need a driver
of change and the notion of
progress towards a particular
objective that makes sense and is
achievable in the organisational
context. In some situations,
though, when the organisation is
industries. In a rapidly changing environment,
prescriptive regulation is a brake on business.
It is important to acknowledge and
publicise environmental challenges, as
Singapore’s National Climate Change
Strategy has done, to make everyone aware.
Policymakers should form partnerships
with firms to implement change practices and
develop new solutions and capabilities by, for
example, increasing awareness, assisting in
change management, publicising exemplary
in trouble due to a market failure
or embarrassment, for example,
there will be greater acceptance
among staff and stakeholders that
change is necessary.
How cognisant, in your view,
are most business leaders to
environmental issues?
Business leaders are like people
everywhere – some issues are
felt more strongly than others.
Recent surveys carried out by IBM
and McKinsey demonstrate that
leading organisations seem to
have a high level of acceptance
of environmental issues. Smaller
organisations may have different
views depending on the local
market conditions.
Has the economic crisis in recent
years has pushed sustainability
down the corporate agenda?
You’d think that if companies were
aiming to ensure their businesses
survived in the wake of the
economic crisis that they might
place a lower priority on what
they may see to be non-essential
items. That hasn’t necessarily
happened, and in 2009 the World
Economic Forum identified that
environmental issues were still
in the top list of concerns even at
the height of the economic crisis.
If organisations see the necessity
to change, it means they need to
change their operations in some
way. If they’ve been alerted to
environmental problems, and
there are concerns by customers
or stakeholders, they’re open to
that change.
For firms that are environmental
leaders, do some of those
triggers motivate them?
Companies are lead by
individuals, and individuals
have views that are open to
social, environmental or other
characteristics. Some leaders
have it and others don’t. Sir
Richard Branson and others are
quite vocal, and even leading
companies such as Unilever can
can be unexpectedly active and
concerned about their corporate
social responsibilities.
Have leading companies
been able to drive long-term
business value by embracing
a sustainability agenda or are
they still finding their feet?
Let me give you an example:
when the notion of e-business
was first introduced, many
companies dabbled but said:
‘Moving our business online won’t
work in our industry.’ Based on
their experiences, by and large,
they were right. It didn’t work,
not because it couldn’t work but
because they didn’t put enough
effort or investment into it.
I think sustainability may be a
similar issue. Token gestures
such as turning off lights will
only make a marginal difference,
so companies won’t take it
seriously. It really depends on
the seriousness of the approach,
as positive impacts won’t be
delivered by a marginal case but
by the business committing the
effort and investments necessary
to make sustainability an integral
part of their core business. Only
then will benefits to both the
business and the environment
start to become significant.
Is the creation of positions such
as that of chief sustainability
officer (CSO) a useful way
to integrate environmental
concerns into business?
It depends on the circumstances.
If a company is serious about
integrating sustainability and their
core business it can be a useful
approach. A CSO can be useful
if they are responsible for the
organisation’s transformation and
for maintaining the company’s
efforts; however, if they
don’t have organisation-wide
responsibilities in an area of their
employer’s core business but
only operate within a separate
sustainability department, the
most likely outcome is that their
efforts will remain a marginal
activity.
In Singapore, how can business,
government and society work
together to tackle climate
change more effectively?
All parties can realise that
working together is part of their
main activities because none of
them can do it alone. The most
important thing done so far is
the National Climate Change
Strategy 2012. It is an exemplary
approach to the issues that shows
how a country can acknowledge
and respond to the potential
impacts of climate change. In my
experience, there has been too
much politicisation of the issue
overseas that makes it difficult to
get consensus on issues.
How will governments and
businesses cope with the effects
of climate change?
When individuals within
governments and businesses
realise that change is no longer a
political perspective or position,
but a real and immediate issue
that they need to deal with for
the immediate viability of their
future organisation, then they will
really get involved.
How can issues like climate
change be better communicated
with a view to gaining
stakeholder buy-in?
The important thing is at all
levels to think clearly about what,
exactly, the issues are. In many
cases in which environmental
sustainability has been politicised,
the vast majority of scientific
evidence has been discounted.
While it is difficult to predict the
future, if experts agree that the
future will be worse that the
present because of our current
behaviour, prudent management,
leadership and governance
at organisation, industry and
national level is needed to effect
behavioural change. Leaders must
also monitor and prepare for
unavoidable challenges resulting
from our past behaviour. Business,
government and society all need
to be prepared for the challenges
to come and to be aware of how
these challenges will affect them.
Just as it is important that
business leaders focus on applying
sustainability principles to the core
parts of their business rather than
focusing on the margins, society
needs to focus on the main issues.
In societal terms, core issues will
include ensuring the security of
food and water resources but also
natural resources, such as areas
deemed to be of outstanding
beauty or designated UNESCO
World Heritage Sites. An example
is Australia’s Great Barrier Reef,
the largest coral reef in the
world. In spite of being carefully
protected from localised pollution
by regulation, most scientists
believe that coral reefs all over
the world will deteriorate to the
point of extinction in coming
decades due to rising sea waters,
increased temperatures and
acidification of the ocean. People
may not understand the scientific
links between greenhouse
gas emissions and increased
acidification of the oceans, but
if they are made aware that
current behaviour results in the
destruction of iconic natural
resources, many will willingly
accept the necessity to change.
Stakeholders at individual and
organisational levels can become
more actively engaged through
compelling awareness campaigns
to protect iconic natural resources.
In this way, people might be more
easily persuaded to turn off the
lights whenever they leave a
room. Conversely, once they
have accepted the necessity for
change, doing so will just become
an accepted part of their changed
behaviour.
Issue 4
061
Behavioural insights
conflict of interest
Owners and tenants often have clashing agendas when it comes to
saving money – and energy. Can they be united under a common
goal of saving emissions?
W
hen landlords invest in new
properties they rarely splash out
on top-of-the range appliances.
But budget white goods are
rarely the most efficient, leaving tenants to
foot increased running costs for energyhungry washing machines, refrigerators and
air-conditioning units.
In the absence of financial or legal
incentives to change their behaviour,
landlords will continue to invest in cheaper,
less efficient equipment. They may also
be less inclined to make the structural
changes to buildings necessary for cutting
062
Contributor
Shiva Susarla is a Research Associate at
the Energy Research Institute, part of the
National University of Singapore
consumption, such as installing double
glazing or insulation.
Tenants whose rent includes gas and/or
electricity, or whose contracts allow them
to pay fixed bills regardless of usage, are
isolated from energy price signals – changes
in tariffs that might alert them to decreased
availability or increased taxes, for example,
thereby removing any financial incentive to
conserve resources.
Similarly, arrangements in which tenants
divide energy bills equally, individual
usage notwithstanding, can encourage a
mindset in which individuals maximise their
consumption and are effectively subsidised
by their housemates or neighbours.
The term ‘principal-agent problems,’ used
within this article, refers to the conflicting
goals of landlords and tenants that lead
to under-investment in energy-efficient
appliances or excess energy usage.
A disincentive
Households are responsible for about 17 per
cent of Singapore’s electricity consumption.
While this is a smaller proportion than those
seen in larger countries such as the US or
UK it still has a significant impact.
Moreover, given Singapore’s large migrant
population and the high incidence of house
renting, subletting and multi-tenant sharing,
it is possible that landlords’ and tenants’
failure to curb their energy consumption
is pervasive and contributes to significant
wastage of energy.
In theory, therefore, addressing their
conflicting agendas may result in substantial
savings for tenants and also help meet
national targets for energy efficiency. To
understand exactly how much energy can
be saved by addressing them and whether
it is cost-effective to do so it is, however,
important to first estimate how much energy
is lost due to these problems and understand
how this can be addressed, if at all.
Quantifying the extent of the problem is
somewhat tricky as it requires identifying
households in which it occurs and the
specific ways in which energy is wasted.
Clearly, any methodology developed
to measure the impact of landlords’ and
tenants’ conflicts of interest can only be, at
best, an estimate.
A number of studies in the past have
broadly focused on identifying and
defining the existence of such problems in
the residential sector without measuring
empirically reduced energy efficiency. Some
recent studies, however, have attempted to
develop methodologies and frameworks with
the specific objective of estimating the extent
and impact of the issue.
In 2006, Murtishaw and Sathaye estimated
the number of households in the US affected
by principal-agent problems.
During their research, part of a larger
study commissioned by the International
Energy Agency (IEA), they developed a
methodology that classified households as
affected either by ‘usage,’ in situations where
tenants paid fixed energy bills or ‘efficiency,’
when landlords chose appliances and tenants
paid energy bills based on usage.
The study considered four end uses of
energy in households – refrigerators, space
heating, water heating and lighting, which,
together, account for about 73 per cent of all
residential energy consumption in the US.
They then applied the methodology to assess
how end use was affected.
Data from the American Housing Survey,
the US Census Bureau and the Residential
Energy Consumption Survey were used
in the analysis. The study estimated that
refrigeration in about 29 per cent of all
US households was affected by principalagent problems. Similarly, lighting, space
heating and water heating were estimated
to be affected in 5 per cent, 53 per cent
and 69 per cent of households respectively.
Furthermore, by addressing the causes of
energy wastage through refrigeration alone,
the study estimated that annual savings of 48
million kWh of energy could be made over
the refrigerators’ lifetimes. At a retail energy
price of about US$0.1/ kWh (US$ 10 cents),
the dollar value of such savings is about
US$4.8 million.
“In Singapore,
the dominance of
apartments makes
isolating efficiency
initiatives in
individual households
more complicated,
particularly if
implementing such
measures involves
making structural
changes to the
buildings concerned”
The costs involved in addressing these
problems were not covered by the study.
It concluded that landlords’ continued
reluctance to implement energy-saving
measures when investing in new properties
could be addressed by information initiatives
such as labelling. It does not, however,
consider such schemes to be feasible ways
of addressing their reluctance to take such
measures in their existing capital stock of
energy appliances.
Empirical evidence of principal-agent
problems in the residential sector was
provided by Davis (2010), who suggested
that tenant-occupied homes are less likely to
have energy-efficient appliances than those
inhabited by owners, and Levinson and
Neimann, who found that tenants who paid
fixed energy bills used more heating than
those charged according to usage.
In a 2012 study, Gillingham et al provided
further empirical evidence of the magnitude
of principal-agent problems, this time in
California’s residential sector. The study
established that people who paid for their
homes’ heating based on usage were 16 per
cent more likely to turn it down at night,
suggesting they were mindful of the size of
their energy bills. It also found that owneroccupiers were 20 per cent more likely to
insulate the ceiling and attic and 13 per cent
more likely to insulate the walls, indicating that
in tenant-occupied residences more energy is
consumed due to less efficient insulation.
The study also estimated avoided
annual carbon emissions of about 120,000
metric tons of carbon dioxide (CO2) if
the principal-agent problems in heating
and insulation were completely addressed.
Given the relatively small quantity of the
avoided emissions relative to the total
household emissions of 28 million metric
tons of CO2, the study concluded that policy
interventions would be beneficial only if they
were low-cost and easy to implement. For
example, it suggests mandatory insulation
quality disclosure requirements for landlords
as a possible cost-effective approach.
It recommends that, if the focus is on
emissions reduction, tackling tenants’ energy
wastage and landlords’ inaction can only
be a small part of a larger climate change
programme.
As such, some of the methodologies
discussed above could be useful to estimate
the magnitude of principal-agent problems
in Singapore and to assess whether policy
intervention could be beneficial.
A key challenge is the availability of data on
housing and residential energy consumption,
both key inputs to the methodologies. Also,
it is important to note that the household
energy usage patterns and mix in Singapore
could be significantly different from those in
the US and more difficult to measure. For
example, one would assume that independent,
landed properties represent a larger
percentage of the total housing stock in the
US than here, making it easier to measure and
monitor efficiency measures such as building
insulation in individual homes. In Singapore,
the dominance of apartments makes
isolating efficiency initiatives in discrete
households more complicated, particularly if
implementing such measures involves making
structural changes to the buildings concerned.
Given these challenges, a set of trial
experiments in which patterns of energy
usage and appliance energy efficiency
are monitored in two or more types of
household could be useful in determining
the extent of principal-agent problems in
Singapore.
Issue 4
063
Behavioural insights
Behavioural insights
064
“One of the
bedevilling aspects
of the behavioural
conundrum is that
policy fixes designed
to combat one type of
behavioural bias can,
in their turn, result in
additional ones”
45
40
35
30
25
20
15
10
5
Fuel economy (miles/gallons)
50
48
46
44
42
40
38
36
34
32
30
28
26
0
24
a tangible effect on decision-making,
behavioural economists contend that they
can have a bigger impact when their design
taps into individuals’ behavioural biases.
The notion that people have cognitive
limits and that these limits affect their
ability to reason is couched under the term
‘bounded rationality’.
This term implies that seemingly trivial
aspects of label design, such as the units in
which data is presented, are significant.
Consider cars’ fuel economy, often
expressed in miles per gallon (MPG).
Consumers or policymakers might
mistakenly believe that fuel savings increase
framing energy efficiency performance in
loss avoidance terms or by utilising ‘negative’
categories. The US fuel economy label,
for instance, highlights how much fuel the
vehicle saves relative to the average new
vehicle, as opposed to how much fuel waste
is avoided by using the vehicle.
In Singapore’s Green Mark Scheme,
with buildings meeting the minimum
energy requirements classed as Certified,
Gold, GoldPlus or Platinum, it may not be
apparent to the owner of a Gold building
that its energy efficiency performance is two
notches below the best.
One of the bedevilling aspects of the
behavioural conundrum is that policy fixes
designed to combat one type of behavioural
bias can, in turn, result in additional ones.
Relationship between vehicle’s fuel economy
rating and marginal fuel savings
22
Nahim Bin Zahur Energy Studies Institute
(ESI), part of the National University of
Singapore
Dr Neil Sebastian D’Souza is a coal
markets reporter at the independent
commodities pricing organisation Argus
Media and a former ESI Fellow
linearly with the vehicle’s MPG. In fact, the
actual relationship between fuel savings and
MPG is curvilinear – the same increase in
MPG will result in greater fuel savings if the
car is less efficient to start with.
Figure 1 illustrates the relationship
between a vehicle’s fuel economy rating and
marginal fuel savings.
Replacing a 15MPG car with a 19MPG
one results in fuel savings of 140 gallons
over 10,000 miles. By contrast, replacing
a 34MPG car with a 44MPG car – a
seemingly bigger increase in fuel efficiency
when expressed in miles per gallon – only
results in fuel savings of 67 gallons over
10,000 miles. Experimental evidence
suggests that most individuals are likely to
misunderstand MPG labels.
Expressing fuel economy in gallons per
mile (GPM) significantly improves decisionmaking because fuel savings increase linearly
with a vehicle’s GPM.
The ‘miles per gallon illusion’ can be
generalised beyond fuel economy labels.
Any label that expresses energy-efficiency
information as output divided by energy
20
Correcting misperceptions
Energy labelling programmes for appliances,
buildings and vehicles have become an
increasingly popular policy tool worldwide.
While research has shown that energy
efficiency information on labels can have
Contributors
18
I
n 1961, the economist George J
Stigler published his seminal work
on how information affects decisionmaking. Since then, his research has
steadily gained traction, entering mainstream
economic thought and providing an insight
into the impact of information provision and
acquisition on consumer behaviour.
Policymakers have begun to realise the
importance of providing clear, accurate
information as a means of influencing
consumer decisions.
The low take-up of energy efficiency
technology has been linked to a lack of data
on product labels.
Consumers’ desire to buy power-hungry
appliances may seem irrational but could in
fact be due to a lack of information about
products’ relative energy efficiency.
16
Behavioural economists reveal how fuel economy labelling can
influence purchasing choices to positive effect
Marginal fuel savings (gallons)
devil’s in the detail
consumption can be misinterpreted. Yet
energy labels around the world continue to
be designed without consideration for the
possibility of bounded rationality.
The energy efficiency of air conditioners
is customarily expressed in the form of the
energy efficiency ratio (EER) – the ratio of
the cooling output, in Btu/hr, to the electrical
power input, in watts. This ratio is illustrated
in the energy labels on air-conditioners in the
US, European Union and the Philippines,
among others. Singapore’s energy labels
perform well in this regard, with the fuel
economy labels expressing fuel economy in
litres per 100km and air-conditioner labels
displaying the effective power input and
cooling capacity separately rather than as an
energy-efficiency ratio.
The way in which information is presented
can also shape behavioural patterns.
Evidence from behavioural research
suggests that individuals are loss-averse,
with most individuals valuing a potential
loss two or more times more highly than
a potential gain. This has implications for
label design, for it means that framing an
energy efficiency improvement as a gain,
through, for example, a statement such as
‘the appliance is twice as efficient as the
average appliance,’ is likely to have a smaller
impact on behaviour than framing it as
avoiding a loss, or: ‘the average appliance is
half as efficient as this appliance’. Similarly,
having a greater number of ‘negative’
categories would have a greater behavioural
impact. In practice, though, energy labels
rarely make use of loss aversion, whether by
For instance, as the discussion of the ‘miles
per gallon illusion’ highlights, people can
have difficulty calculating aggregate energy
consumption – which is the relevant metric
for decision-making – from energy efficiency
figures. As such, energy labels sometimes
carry information on the expected annual
energy consumption of the equipment in
question, as with air conditioner labels in
the EU or fuel economy labels in the US;
however, this can mask the fact that the
actual amount of energy consumed will
depend on how much the consumer utilises
the appliance. The benefits from purchasing
an energy-efficient air conditioner are
greater for a consumer who uses it several
hours daily than for one who uses it
sparingly, but this fact is less likely to be
salient at the moment of purchase if the label
already has an annual energy consumption
figure printed on it.
The principles of behavioural economics
would suggest that a ‘well-designed’
energy label contain several key pieces of
information. Including statistics showing
how many other consumers use energyefficient appliances taps into ‘pro-social’
preferences – people compare their own
behaviour to that of the rest of society.
Printing information on the expected annual
energy consumption and fuel costs precludes
consumers from performing the calculations
themselves and potentially making errors
of judgement. Including information on the
energy performance of the most and least
efficient appliances in the market can induce
consumers who are averse to extremes to
go for the ‘compromise’ option, which can
be designed in such a way that it is also
the optimal choice. But there is a real risk
that, when presented with a bewildering
array of complex information, consumers
might simply ignore the energy efficiency
dimension altogether, a phenomenon known
as ‘choice overload’.
The economics of information has
brought to the fore the idea that lowering
the cost of information provision via policies
such as energy labelling schemes can help
consumers make socially optimal decisions.
Behavioural economists, however, suggest
that it is not just the provision of information
that matters but also the manner in which it
is conveyed.
Even seemingly trivial aspects of a
label’s design, such as the unit in which
energy efficiency is expressed, can have
a significant impact on its effectiveness.
Tapping into consumers’ behavioural biases
can thus bring about greater alignment
between private and social objectives.
Source: Authors’ calculations for marginal fuel savings, assuming the car is driven 10,000 miles each year
Issue 4
065
Education for global challenges
Required
learning
Breaking down silos
Meeting the challenge of climate change requires professionals
grounded in diverse academic disciplines. Professor George Ofori
of National University of Singapore (NUS) shares perspectives of
academics, alumni and students of a groundbreaking degree that
equips students to tackle complex environmental issues
H
uman activities lie at the root of
climate change – and its impact is
becoming more serious.
Disrupted precipitation patterns
have led to more frequent extreme weather
events, in turn affecting people and natural
habitats worldwide.
Its considerable social and economic
impacts have included loss of life,
destruction of property, food shortages,
and mass migration that threaten some
communities’ very existence.
The Masters of Environmental
Management (MEM) degree, now in
its 12th year, is a pioneering course that
helps students from many academic and
professional backgrounds to find solutions to
this ongoing threat.
Cutting across several disciplines, it aims
to expand participants’ understanding
of approaches and solutions to critical
environmental issues.
Deconstructing one subject, whether it is
climate change as a whole or a phenomenon
such as precipitation which can affect the
lives of millions, demonstrates just how
complex a problem humanity faces. Yet
the approaches of governments, business
and educational institutions remain largely
confined within discrete disciplines, from
economics and law to social science.
Can such a fragmented approach to
multidimensional challenges be effective
in anticipating change and planning
sophisticated responses?
Do current educational systems offer
sufficient breadth of understanding of the
challenges that lie ahead?
066
Contributor
Professor George Ofori is Director of the
Masters of Environmental Management
degree at the National University of Singapore
and Director, Climate Change Programme
Department, NEA
“A new approach is
needed – one that
integrates subjects
normally viewed as
distinct so that we may
rise to the occasion”
Looking globally, the answer is largely no
– societies are poorly equipped to meet the
colossal challenges facing our economies,
ecosystems, communities and our very
civilisation.
A new approach is needed – one that
integrates subjects normally viewed as
distinct so that we may rise to the occasion.
Educators, in particular, bear
responsibilities towards the process of
amalgamation.
An integrated approach
It is clear that climate change can
only be effectively dealt with within a
multidisciplinary and interdisciplinary
context. For example, approaches within
environmental economics to prompt
mitigation and adaptation must be guided by
scientific inquiry.
With its combination of scientific and
economic disciplines, the MEM is ideally
suited to those who wish to take such an
approach – indeed, it may be the only
appropriate course.
Scientific knowledge about climate change
is continually evolving, meaning that a
greater understanding of current research is
needed at a local, regional and global level.
For example, new findings show that local
pollution can disturb atmospheric energy
balance. In return, a disturbed atmosphere
tends to result in extreme weather events
such as heavy precipitation and flooding.
This further underlines the need for
multidisciplinary studies to increase
understanding of the complex and dynamic
patterns of climate and their impacts on
human life and ecosystems. Students
need to gain a broad and balanced view of
environmental challenges.
Multilateral efforts
Greenhouse gas emissions do not respect
national boundaries.
If strategies to tackle climate change are to
be effective they must be multilateral; bold
policies should be formulated and solutions
implemented at national, regional and
international levels.
It is currently understood that there is a
need not only to mitigate climate change,
but also to adapt to changing climate
conditions. Societies should move towards
using renewable energy, protecting coastlines
Issue 4
067
Education for global challenges
and planning for disaster management, for
example, but such measures are currently
limited by societal values, ethics and attitudes.
Mindset and behavioural changes that will
alter people’s lifestyles are crucial.
Course structure
Launched in 2001, the MEM programme
is a multidisciplinary, integrated educational
approach to a range of issues and challenges
relating to the environment and its effective
management.
The programme targets senior and
middle-level managers and officers in
companies and in government and nongovernmental organisations.
Participants come from Singapore,
the Asia-Pacific region and beyond. The
programme is offered jointly by nine
faculties and schools in the National
University of Singapore (NUS) and hosted
by the School of Design and Environment
(SDE) and led by a Committee comprising
a representative from each faculty/school.
It can be studied full or part-time, in one or
two academic years respectively.
Each module explores climate change
from a different perspective.
By considering the issue through
discplines as diverse as science and
engineering through to planning and law,
students and alumni gain an extremely broad
understanding of strategies through which it
can be addressed.
Student feedback indicates the approach
is working. One current student notes:
“The nine faculties in the programme offer
different views on how we should look at the
environment from different sectors such as
technology, law, business and urban planning.”
A group of seven core modules form
the first component of the programme:
Participant perspectives
Alan Yau, Chief Executive Officer, Sembcorp
China, MEM Alumnus
The MEM programme has armed me with a
comprehensive understanding of the causes and
challenges of climate change.
I am in the utilities business – power
generation, waste water treatment, water supply,
and so on. We are doing our part to protect the
environment by treating waste water and finding ways to reduce our
carbon footprint – we have wind farms and waste-to-energy plants.
Part of my job involves making decisions on what type of technology
to adopt and what type of chemicals to use in relation to bottomline considerations. I have been more conscious in making the right
decision, with a bias towards protecting the environment.
068
Business and Environment; Environmental
Economics and Public Policy; Environmental
Law; Environmental Management and
Assessment; Environmental Planning;
Environmental Science; and Environmental
Technology.
Each student must also submit a
dissertation not exceeding 20,000 words or a
study report of no more than 10,000 words
which must be completed under supervision,
offering the opportunity to explore topics
of interest in greater depth, regardless of
whether it falls within the student’s domain.
Incentives to excel in this segment
include the Shell Prize, awarded for the best
dissertation, and published summaries of the
best dissertations and study reports in books.
A third component of the MEM
programme is made up by the MEM
Seminar Series, usually held every fortnight
and delivered by eminent practitioners,
researchers and professors. In one student’s
opinion, they offer the opportunity to hear
the diverse perspectives and experiences
of distinguished individuals on a variety of
environmental issues.
One alumna reflects that: “The series of
seminars were extremely helpful in letting
the students know what is being done
by many entities (public and private) in
mitigating these challenges and helping them
to realise the true meaning of the phrase
‘doing good is doing well’.”
Depths of understanding
The urgency of addressing climate change
is embedded in each of the core MEM
modules.
Students are encouraged to choose the
electives that will best enable them to address
I am proud to say that this business philosophy is in line with my
company’s commitment to CSR. The knowledge acquired from the MEM
programme enables me to have a holistic view of my industry and has
sharpened my business acumen in identifying opportunities.
Jasmine Teo, Group Corporate Social
Responsibility Manager, SingTel,
MEM Alumna
In my current job as CSR manager, my job
scope has expanded beyond the environment
into the broader aspects of sustainability.
To me, environmental management is often
the most complex issue within the sustainability
or CSR sphere, and the MEM programme has equipped me with the
necessary knowledge. I have also gained a deeper appreciation and
understanding of the connections between the environment, society
and the company’s business activities.
complex environmental problems in their
present or future jobs.
They are encouraged to take an overview
by considering environmental issues
and their management from a variety of
perspectives and to consider how seemingly
disparate issues interconnect – a holistic
approach that can present problems for
participants accustomed to more narrow
fields of enquiry. For example, one current
student considers that students from
non-technical backgrounds may find the
sessions on environmental technology
tough, yet notes that such study equips
them with the basic skills needed to
calculate the environmental impact of
various technologies. They can then make
environmentally sound choices as individuals
or on behalf of employers.
Naturally, students from engineering or
science backgrounds face similar challenges
on modules in the sphere of economics,
public policy and law. On Environmental
Economics and Public Policy modules,
preparatory and additional, or supplementary,
classes led by graduate students can be
arranged for students who need support.
A sharpened awareness of challenges and
heightened sense of urgency are evident
among MEM graduates, with one noting:
“Through the MEM programme, I’ve
learnt to appreciate the different facets of
environmental issues and how intricately
they’re linked.”
International dimensions
Students from more than 27 countries have
been admitted to the MEM programme – a
factor that offers enhanced opportunities to
participants.
“MEM students benefit
directly from the
programme’s links with
foreign universities
with strong track
records in the study
of environmental
management”
One alumna noted: “The programme has
brought in students from many countries
and cultures across the globe, sharing
their thoughts and views from different
perspectives and building the capacity
required to implement environmental
policies and programmes in our respective
countries and workplaces.”
In this way, the degree also helps to build
capacity in many countries to address
environmental issues such as climate change,
and to sow the seeds that will contribute to
the success of international negotiations and
actions.
MEM students benefit directly from the
programme’s links with foreign universities
with strong track records in the study of
environmental management. Foremost among
these are Yale University’s School of Forestry
and Environmental Studies, and the Nicholas
School for the Environmental and Earth
Sciences at Duke University, both in the USA.
The programme’s International Advisory
Van Nguyen Dao Ngoc, World Wildlife Fund,
Greater Mekong, Vietnam, MEM Alumna
The MEM programme is extremely helpful to
me in my current job. It provided me with
a comprehensive understanding and broad
knowledge of the environment and the aspects
to be managed.
It was carefully designed and thus covers
significant global and regional environmental issues. The reading lists
were also well designed to encourage students of different backgrounds
to acquaint themselves with areas of their own interests.
The knowledge I acquired in environmental law and environmental
economics modules are particularly helpful to me for my work in nature
conservation.
The dissertation and research work are invaluable to students with
a non-research background and those who have never been taught
writing skills.
Committee is chaired by Professor Tommy
Koh, Ambassador-at-Large of Singapore,
and comprises eminent academics and
practitioners from around the world.
Committee members have provided
valuable guidance and support which has
enhanced the programme; local members
include NEA’s CEO, Mr Andrew Tan; and
the CEOs of the National Parks Board and
Urban Redevelopment Authority.
Several of the degree’s professors are
involved in research on the impacts of
climate change being conducted in their
respective departments, faculties, schools
and research centres.
The programme also receives strong
support from industry and government
agencies in the form of scholarships,
employee sponsorship, bursaries and
internships.
In a world that will face ever greater
environmental challenges, the MEM
provides a multidisciplinary and
interdisciplinary education in environmental
management to middle-level professionals in
Singapore, Southeast Asia and beyond.
Designed to address a complex subject in
an effective manner, the programme plays a
key role in capacity building to address the
impact of climate change and to develop
the knowledge that will enable adaptation.
However, this is only one humble first step.
Educational institutions globally must
also awaken to the same reality that only an
integrated approach to environmental issues
will provide the enhanced understanding
among professionals needed to adequately
meet the challenges of climate change tackle
climate change and to effectively manage the
environment.
Mallika Naguran, MEM student and founder of
sustainability consultancy and publication
Gaia Discovery
I have been concerned about climate change for
some years, leading me to undertake research
into it for my work in environmental publication
and consultancy.
My interest lies in finding mitigation and
adaptation measures and solutions to reduce the threat of extreme
weather changes and global warming and its impact on communities
and businesses in Southeast Asia.
The rigour of the MEM programme has enabled a better grounding
of environmental issues such as climate change. Apart from enhancing
the knowledge of students about climate change, the programme also
inspires individuals to take responsibility for their own actions.
The MEM programme has helped me all round by giving me new
skills and information through research, fieldwork and analysis.
Issue 4
069
parting shot
parting shot
into thin air?
The Clean Development Mechanism allows developing countries’ carbon cutting projects to form
part of emission trading schemes. But with flat CER prices will it remain relevant in years ahead?
070
Investing country
(developed country)
200
13
-2
0
20
12
0
20
Initial
allocation
of
allowances
NEA is Singapore’s Designated
National Authority (DNA) for CDM
projects under the KP.
Its role is to ensure that CDM
projects to be implemented
locally meet national sustainable
development (SD) criteria. In
addition, NEA administers the
400
20
Host country
(developing country)
Funds & technology
transfer
CDM in Singapore
600
11
Reduced
emissions
with CDM
Looking ahead
The CDM is currently challenged by the low
prices of, and demand for, CERs.
Mr Rahul Kar, Director, Climate
Change and Sustainability Services at
KPMG, said: “Current uncertainties in the
800
20
KP target
Figure 2: $215 billion invested,
$1 trillion threatened
10
CERs
The CDM market today
CER prices sunk to a record low in the first
quarter of 2013. Based on market data and
assessments by Thomson Reuters Point
Carbon, the OTC closing price on 15 March
2013 for CERs, based on December 2013
contracts, was US$0.32.
The decline in CER prices mainly
stemmed from decreased annual emissions
in the EU, as opposed to the emission
allowances allocated to companies, resulting
in weak demand for CERs as offsets under
the EU emissions trading scheme.
According to Indian newspaper the
Economic Times, climate experts felt that
“reluctance of industrialised countries to
accept binding emission targets will dry up
demand for carbon credits and reduce their
prices further.”
20
Total emission
units increase
with CERs
What is the CDM?
The CDM allows GHG emission reductions
from projects implemented in developing
countries, including Singapore, to earn
certified emission reduction (CER) credits,
each equivalent to one tonne of CO2.
These can be traded and sold to offset the
emissions of developed countries with targets,
such as Japan and EU member states.
As illustrated by Figure 1, the CDM was
designed to promote investment in emission
reduction projects in developing countries
while promoting sustainable development
through technology transfer from developed
nations to developing ones.
A broad range of projects is eligible under
the CDM, from fuel switching and energy
efficiency improvements to projects on
renewable energy.
More importantly, to qualify for CDM
project developers must prove ‘additionality,’
defined as emission reductions that are
additional to what would otherwise have
occurred.
To date, the CDM constitutes the largest
source of mitigation finance to developing
countries – in 2012 the UNFCCC reported
that the total investment in registered or
soon-to-be-registered CDM projects as
of June 2012 had been estimated at
US$215.4 billion.
The first CDM project was registered in
2005 in Brazil. Since then, as of 31 January
2013, more than 6,000 projects had been
09
Emission
reductions
from CDM
compliance scheme that is applicable to
developing countries. In December 2012, the
Convention adopted the Doha Amendment
to the KP, which launched the second
commitment period, from 2013 to 2020.
The collective emissions reductions targets
proposed by signatory developed countries
for the second commitment period would
reduce GHG emissions by about 18 per cent
below 1990 levels between 2013 and 2020.
20
Projected
emissions
without CDM
Suresh Kulaveerasingham is Director
of the Climate Change Programme
Department, National Environment Agency
registered in 83 developing countries and
approximately 1.2 billion CERs have been
issued. By the end of 2020, it is expected
that 2.4 billion CERs will have been issued.
Figure 2 illustrates CDM investment to date
with future projections.
UNFCCC’s CDM database shows that
85.3 per cent of the projects are registered in
Asia and the Pacific. More than 70 per cent
of investments in CDM are concentrated in
China, India or Brazil. Figure 3 illustrates the
split of registered projects by host countries.
In terms of technology, Figure 4
shows that renewable energy constitutes
approximately 70 per cent of the investment
leverage by CDM.
08
Figure 1: How CDM works
Contributor
20
T
he United Nations Framework
Convention on Climate Change
(UNFCCC) was adopted in 1992
in response to international calls for
action to combat global warming.
Two years later, recognising that the
Convention’s provisions for reducing
emissions were inadequate, the UN adopted
the Kyoto Protocol (KP), which legally binds
38 developed countries to greenhouse gas
(GHG) emission reduction targets.
The first commitment period of the KP,
from 2008 to 2012, required developed
countries to reduce their emissions by 5.2
per cent, on average, below 1990 levels.
Together, excluding the United States,
these nations account for about 43 per cent
of global CO2 emissions for 1990.
Singapore is a party to both the UNFCCC
and the KP. Under the KP, developing
countries including Singapore do not have
emission reduction targets.
Three market-based mechanisms were
designed under the KP to allow developed
countries to meet their targets in the most costeffective manner – the Clean Development
Mechanism (CDM), Joint Implementation (JI)
and the Emission Trading Scheme (ETS).
Of the three market-based measures
under the KP, the CDM is the first and
only international GHG mitigation
The falling CER prices will reduce the
incentive to make low-carbon investments
and increase the risk of locking in carbonintensive infrastructure.
Mr Gerald Hamaliuk, President of Landfill
Gas Canada Ltd, a carbon consultant for a
CDM project by Kim Hock Corporation,
said: “The share fall in CER prices is not
allowing registered projects to realise the
additional revenues necessary to fund the
capital costs of projects.”
But with more countries looking into
putting in place emission trading schemes,
Mr Vincent Tang, ECO Special Waste
Management Pte Ltd (ECO SWM), said:
“The ‘bottom-up’ approach will lead to a
revolution in the carbon market system and
help to achieve environmental integrity in
reducing carbon emission.”
The EU, Iceland, Norway, Switzerland
and Australia have signed on to the second
commitment period, from 2013 to 2020;
however, with the US staying out of the KP
and Canada’s withdrawal from it; and Japan,
New Zealand and Russia opting out of the
second commitment period, the targets
would only apply to less than 15 per cent of
the world’s GHG emissions.
Despite this, the outcome of the Doha
meeting provided a positive outlook for the
carbon market. Developed countries agreed
to review their KP commitments by the end
of 2014 to increase their levels of mitigation
ambition, which would result in an increase
in the demand for CERs.
If a global climate change agreement
beyond 2020 is to be made, countries must
work towards developing targets, which are
expected to be more ambitious than those of
the second commitment period.
The deadline by which countries must
approve this measure is 2015.
Investment per annum
Total investment
global economy and the European carbon
regulations have resulted in falling CER
prices that are unlikely to recover without
renewed demand.”
For Singapore, he opined that “future
green projects in the country and elsewhere
are likely to shift their focus towards
international voluntary carbon markets that
currently provide better pricing.”
The CDM was intended to help developed
countries meet their emission reduction
targets and to assist developing countries in
achieving sustainable development.
Figure 3: Distribution of
registered projects by host
country (%)
18%
3%
4%
18%
“The effects of climate
change are already
being seen, so increased
action is inevitable”
Apart from making emission reduction
projects economically viable through the
revenue from CERs, there are also additional
benefits from these projects. For example,
in Kim Hock Corporation’s CDM project,
horticultural waste used as fuel, diverted
from the public waste incinerators, helped
to free capacity for other waste to be treated.
This would help to improve the waste
handling system in Singapore.
Looking ahead, with the UNFCCC aiming
to develop a global climate change regime in
2020 and to increase post-2020 ambitions,
CDM will continue to stay relevant and
play an important role in the future climate
change regime.
This view on the role of the CDM is also
echoed by Mr Peer Stiansen, Chair of the
UNFCCC CDM Executive Board: “The
effects of climate change are already being
seen, so increased action on climate change
is inevitable.
“Tools like the CDM will become
indispensable.”
CDM Documentation Grant to
promote the uptake of CDM
projects.
The grant will co-fund, with up
to $100,000 per project, the cost
of engaging carbon consultancy
services to develop CDM projects
in Singapore.
53%
4%
China
India
Brazil
Mexico
Vietnam
Other countries
Figure 4: number (%) of CDM
projects in each category
0.8%
0.4%
3%
2%
2%
7%
16%
69%
HFCs, PFCs, SF & N2O reduction
Renewables
CH4 reduction, and cement and coal mine/bed
Supply-side EE
Fuel switch
Demand-side EE
Afforestation and reforestation
Transport
Source: UNFCCC
Since 2006 there has been
a progressive increase in the
number of CDM projects in
the city-state – to date, it
has 11 ongoing CDM projects
which are estimated to reduce
approximately 1.2 million tonnes
of CO2 equivalent annually.
Of the 11 projects, three have
been registered with the CDM
Executive Board under the KP.
In September 2012, the CDM
project by Eco SWM Pte Ltd
became the first CDM project
in Singapore to be issued with
carbon credits.
Issue 4
071
opportunities
career opportunities
The National Environment Agency (NEA) is
the leading government body responsible for
sustainability and cleanliness in Singapore.
Committed to encouraging individuals to reduce
the ecological impact of their actions, it develops
and spearheads numerous initiatives through
SENIOR ASSISTANT DIRECTOR
(OPERATIONS AUDIT/PLANNING)
Responsibilities
Leading the operational audit team to
plan and perform operational compliance
audits; managing the team to ensure
operations audit programmes are carried
out effectively; formulating and developing
an internal operations audit work plan to
ensure that internal controls and checks on
NEA’s operations are in place; evaluating
adequacy and effectiveness of internal
controls; identifying audit issues and
concerns; and making practical value-added
recommendations on internal controls and
operations processes to management.
Requirements
Degree in accountancy or related field; a
professional qualification of CPA and/or
CIA would be advantageous. Five years’
auditing experience in medium to large CPA
firms and/or corporate IA departments and/
or at least five years’ experience of internal
operational audit and process improvement
work in the public sector. A sound
understanding of internal control concepts,
corporate governance and risk management
issues is required, as is knowledge of audit
procedures including planning, techniques,
test and sampling methods involved in
conducting audits. A high level of computer
literacy is essential. Candidates should
be highly motivated and able to work
independently, and possess strong
analytical, report writing and
communication skills.
Assistant Director
(Operations Planning)
Responsibilities
Supervising officers and overseeing
maintenance engineering and system
management of hawker centres to ensure
072
partnerships with the People, Public and Private
sectors. If you care passionately about the
environment and making a difference, why not
join us? Candidates are invited to apply at nea.
gov.sg/careers or the Singapore Public Service
Job Portal, careers.gov.sg.
a safe, hygienic dining environment;
formulating guidelines, SOPs and processes
to facilitate the smooth operation of
department and hawker centres. He or she
will monitor licensing and tenancy processes
and policies; support staff and help to draft
plans for improving hawker centres. They
will also facilitate higher cleaning standards
and sustainable contracts, and strengthen
relationships with stakeholders.
Requirements
Bachelor’s degree in estate management,
building technology or engineering; at least
three years’ relevant employment. Must be
comfortable taking enforcement actions
and have an outgoing, pleasant personality.
Maturity, independence and resourcefulness
are important, as are initiative and strong
interpersonal and communication skills.
Manager, Corporate Communications
(Media Relations)
Responsibilities
Engaging the media to enhance NEA’s
reputation as the lead agency for
improving and sustaining a clean and green
environment; conceptualising, managing and
implementing integrated media relations and
marketing communications programmes.
Applicants should submit at least three
samples of written work.
Requirements
Degree in mass communications or other
relevant discipline; at least six years’
experience in media relations or corporate
communications. More experienced
candidates may be considered for a senior
position. Able to work independently and
within a team, they must have developed and
implemented media relations programmes, be
bilingual and possess excellent oral, written
and analytical skills.
Assistant Manager/Assistant Director
(Development)
Responsibilities
The role involves supervising the design and
construction of market and hawker centres.
Working alongside project consultants, the
successful candidate will scrutinise costs and
monitor the centres’ design and construction.
He or she will brief advisors, government and
non-government organisations, GRO leaders
and other stakeholders on issues relating to
development.
Requirements
Degree in architecture; architectural
studies; construction management;
quantity surveying; building technology; or
engineering. At least three years’ relevant
experience; familiarity with public-sector
project development.
Assistant Director/Assistant Manager
(Procurement)
Responsibilities
Working as part of a team responsible for
upholding proper procurement governance
in NEA, the successful candidate will
facilitate departments’ procurement activities
while ensuring that government and NEA
procurement policies are applied and standards
of integrity and transparency upheld. Leading
a team, he or she will vet tender documents to
ensure they comply with IM (Procurement)
and NEA procurement policies and guidelines;
prepare procurement reports for Tenders
Boards; train department procurement officers
and buyers on IM (Procurement) and auditing
observations on procurement.
Requirements
Good degree in any discipline; at least
four years’ experience of government
procurement; working knowledge of
Instruction Manual (Procurement) and
GeBIZ; an inquisitive mind; strong analytical,
interpersonal, writing and presentation skills;
and the ability to work well under pressure to
meet tight deadlines.
Assistant Manager/Executive (Policy)
Responsibilities
The successful candidate will review and
develop environmental protection and/or
public health policies. He or she will work
closely with NEA’s and MEWR’s policy
units to implement policies, standards and
strategies. They will also carry out economic
analysis and operational research to support
policy formulation.
Requirements
Degree in engineering, science, economics,
political science, social science or related
discipline; keen interest in policy;
good analytical, writing and project
management skills; strong interpersonal and
communication skills; maturity, initiative and
resourcefulness; and knowledge of Microsoft
Office.
ASSISTANT DIRECTOR/ASSISTANT MANAGER
(CORPORATE PLANNING AND RISK
MANAGEMENT)
Responsibilities
You will support the Head of Corporate
Planning and Risk Management in planning
and implementing Workplace Safety and
Health (WSH) programmes and Enterprise
Risk Management (ERM) across NEA.
This will include identifying, reviewing and
monitoring guidelines and SOPs; and WSH,
strategic and operational-level risks. You
will develop and monitor the corresponding
control/mitigation plans and develop NEA’s
WSH and risk management culture.
Requirements
Good degree in engineering or business
administration with at least four years’
relevant career experience, preferably in
WSH and ERM in the public sector or
management consulting. Candidates must
have strong analytical skills and inquisitive
minds; excellent communication, teamwork,
presentation and project management skills;
display initiative and be result-oriented with
a hands-on, ‘can do’ attitude.
Assistant Manager, Hawker Centres
Division (Operations)
Responsibilities
Leading and monitoring officers during
routine inspections of hawker centres,
carrying out enforcement actions where
necessary; working with grassroots leaders,
hawker representatives and external agencies
to ensure good working relationships and
timely provision of advice; preparing and
conducting briefing and dialogue sessions
with hawkers in cases of non-compliance;
engaging 3P partners to improve working
relations and buy-ins for policy changes; and
investigating, monitoring and addressing
feedback, complaints and appeals.
Requirements
Degree, preferably in estate management,
building technology, or engineering;
employment history of at least three years;
outgoing, pleasant personality; maturity,
independence and resourcefulness; computer
literacy and ability to perform night duties.
Engineer
(Environment Technology Office)
Responsibilities
Helping to plan, coordinate and manage
research programmes and incentive schemes
relating to environment technologies; keeping
abreast of operational-ready technologies
and those with potential for breakthrough;
identifying capabilities gaps and needs
leveraging on technology; managing
technology development projects and
establishing links with academia and industry.
Requirements
Degree in engineering or a related discipline;
keen interest in technology development;
strong analytical, project management,
organisational, interpersonal and
communication skills.
Engineer (Recycling)
Responsibilities
Promoting national waste minimisation and
recycling among households through the
National Recycling Programme; facilitating
and implementing waste minimisation and
recycling programmes; handling feedback and
enquiries; ensuring quality service standards
are met; managing the public recycling
bins contract; collating recycling data and
performing ad hoc duties.
Requirements
A good degree, preferably in engineering;
a keen interest in waste and resource
management; computer literacy with good
knowledge of Microsoft Office; strong
analytical, writing, communication and
interpersonal skills; maturity, independence
and resourcefulness.
Senior Executive/Executive (Allocation)
Responsibilities
Implementing tender and hawker policy
changes and directives on vacant stalls, and
planning and scheduling them for public
tender and application. Compiling and
maintaining tender statistics; processing
assignments and transferring cases, and
handling public enquiries.
Requirements
A good degree; must have worked for at least
two years; proficiency in Microsoft Office;
must be customer-oriented, independent,
resourceful and able to multitask, with strong
communication skills, both written and verbal.
Must be a team player with strong analytical
and interpersonal skills.
Executive
(Human Resource Business Partner)
Responsibilities
Partnering line departments in order to
understand and assist with HR operations
including recruitment, re-employment,
performance management, grievance handling,
exit management and advising on policies and
procedures. The Executive will also implement
HR initiatives and manage ad-hoc projects.
Requirements
Relevant degree. Fresh graduates welcome to
apply.
Executive (Procurement)
Responsibilities
Advising NEA departments on procurement;
ensuring government and NEA policies and
guidelines are applied and that standards of
integrity and transparency upheld; devising
a framework for monitoring contractors and
assessing performance.
Requirements
A good degree in any discipline; two to three
years’ experience related to government
procurement; and working knowledge of
Instruction Manual (Procurement), processes
and GeBIZ. Candidates must be inquisitive
and analytical, with a keen eye for detail. Team
players, they should also have good writing
and presentation skills.
Executive (Operations)
Responsibilities
Facilities management of hawker centres and
markets, including monitoring and regulating
cleanliness; establishing strong working
relationships with hawkers’ associations;
managing stall tenants; conducting regular
surveillance; enforcing rules and regulations;
and engaging stakeholders.
Requirements
Degree, preferably in estate management,
building technology or engineering.
Weather and
climate of Singapore
The
TH E
W EATH ER
THE
AN D
C LI M AT E
WEATHER
AND
CLIMATE
OF SIN GA PO RE
Many people here are intrigued
by the weather in Singapore
and the Southeast Asian
Region. Few books have been
written specifically to explain
the weather and climate
systems experienced in this
locality. To share insight into
these areas, the Meteorological
Service Singapore published
The Weather and Climate
of Singapore to spread
understanding of how the
weather influences our lives in
many ways.
METEOROLOGIC
AL SERVICE SINGA
PORE
To learn more about the book
and to get a copy, please
visit: http://app2.nea.gov.sg/
weather_climate_sg.aspx
WIN
your
Copy
ENVISION Magazine has 5 copies of
the book to give away to its readers
(limit one per winner). Here’s how
you can get yours:
OF
SINGAPORE
METEOROLOGIC
AL SERVICE SINGA
PORE
1 Check out the article ‘Innovative
real-time weather monitoring
system launched’ on page 57 and
identify how many stations have
been installed.
2 Email the number of stations
to chris_tobias@nea.gov.sg by
July 15, 2013.
First 5 lucky readers with the correct answer will get a free copy of the book sent to them via post. Best of luck!