Remarks by Minister for Transport Mr Jeffrey Siow for 3rd Global Sustainable Transport Forum Opening Plenary

Excellencies,

Distinguished colleagues,

Good afternoon.

1.          First, I would like to thank Minister Liu Wei and the Ministry of Transport of the People’s Republic of China for their impeccable hosting of today’s 3rd Global Sustainable Transport Forum.

2.          The global transition towards net zero is a journey of ups and downs. Countries continue to pursue their net zero commitments. New technologies are emerging, and investment in clean energy and transport electrification continues apace.

3.          At the same time, this transition is unfolding amid more complicated geopolitics, energy-security concerns, tighter budgets, and rising business costs.

4.          Singapore remains committed to our net zero objectives.

a.          As a small country, our direct impact on the volume of global emissions is insignificant.

b.          But as a global aviation and maritime hub, Singapore can help translate climate ambition into practical solutions that work at scale and across borders.

Transition to clean fuels

5.          In aviation, sustainable aviation fuel is currently the most and only viable pathway. But global production remains small, and costs remain three to five times that of conventional jet fuel.

a.          To meet the International Civil Aviation Organisation’s mid-term goal of reducing international aviation carbon dioxide emissions by 5% by 2030, we need to catalyse a functional global market for sustainable aviation fuel.

b.          This requires both demand certainty and common standards across countries.

6.          Singapore is taking the lead to build the market for sustainable aviation fuel in our region.

a.          From 1 January next year, passenger flights departing Singapore must use jet fuel blended with at least 1% sustainable aviation fuel.

b.          We aim to raise this to 3 to 5% by 2030. To support the higher costs of such fuel, passenger flights departing Singapore will be subject to a levy from 2027.

7.          In maritime, the paths forward are more complicated. There are multiple options for sustainable marine fuels, each with different costs, safety rules, and supply infrastructure. With international shipping carrying over 80% of global merchandise trade, clean energy costs flow directly into consumer prices.

a.          Nevertheless, Singapore has started preparing our port for a multi-fuel future today.

i.            We conducted pilot trials for new fuels like methanol, with methanol bunkering licences awarded to three companies last year.

ii.           We are also taking early steps on ammonia, to build safety and technical standards and infrastructure for ammonia bunkering.

iii.         To equip our maritime workforce to safely operate these new fuels, the Singapore Maritime Academy has launched courses for safe handling of methanol, and is developing similar courses for ammonia.

8.          At the global level, the International Maritime Organisation (IMO)’s efforts to develop a global regulatory framework, remain critical.

a.          The framework sets a level playing field and gives shipowners and financiers confidence to invest in new vessels.

b.          Last October, IMO Members decided to postpone the adoption of the IMO Net-Zero Framework. Singapore urges fellow IMO Members to try to achieve agreement, so the industry has confidence to invest, innovate and scale new solutions.

9.          Regional cooperation on clean energy supply is equally important. In Southeast Asia, the ASEAN Power Grid is a key initiative that will connect demand for clean energy, with countries that can supply renewable energy from solar, wind and water.

a.          The Lao PDR–Thailand–Malaysia–Singapore Power Integration Project has shown that multilateral electricity trading is possible.

b.          But the patchwork of domestic regulations, coupled with constraints and regulatory hurdles, have made such cross-border projects difficult to realise.

10.        As ASEAN Chairman next year, Singapore will work with all Member States to address some of these regulatory hurdles.

a.          One example is the ASEAN Submarine Power Cable Development Framework, which incorporates international best practices and norms to facilitate the laying, maintenance, and protection of submarine power cables. This is a critical piece for the ASEAN Power Grid.

Closing

11.        Transport has always been about connection. But the transition to net zero demands that we deepen those connections – integrating not just people and goods, but our energy systems, our markets, and the rules that underpin them.

12.        This energy transition is a generational opportunity to rethink how our region grows.

a.          By working together, we can build a regional transport network that is sustainable, competitive, and resilient for the future.

13.        Thank you.