SINGAPORE: Singapore’s national water agency PUB plans to launch its inaugural green bonds later this month.
The bonds will be part of a new S$10 billion multicurrency medium-term note programme, the agency said on Thursday (Aug 18).
“This will mark another milestone in PUB’s journey to advance sustainable development and climate action,” PUB added.
A green financing framework has been established to fund planned and future green projects to support PUB’s sustainability efforts. The agency said that the establishment of the framework will contribute to Singapore Green Plan 2030.
“It is also a boost to PUB’s continuing efforts and innovation to ensure a resilient and sustainable water supply for Singapore, which remains critical amid the challenges of climate change,” said the agency.
Climate change will result in more extreme weather events that may impact Singapore’s water resources. Demand for water is projected to almost double by 2060 in tandem with economic and population growth, said PUB.
“The need to tap increasingly on NEWater and desalination will also increase our energy needs to meet growing water demand,” it added.
PROJECTS
The green financing framework will ensure that the green bonds adhere to market best practices, including strong governance and “clear eligibility criteria to evaluate and identify green projects that have a positive impact on the environment”, said the agency.
These projects will advance goals in sustainable water and wastewater management, as well as renewable energy, it added.
To qualify as green projects, they must achieve a reduction in greenhouse gas emissions and contribute to decarbonisation, or show improvements to the environment.
The potential projects that are eligible to be financed with proceeds from green bonds include the Tuas Water Reclamation Plant and floating solar photovoltaic projects.