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Introduction – Building a Sustainable Transport System

1.     Happy to be here at the High Level Dialogue on Sustainable Transport in ASEAN. Let me start by expressing on behalf of my delegation, our appreciation to our host, Minister Budi and his colleagues from the Indonesian Ministry of Transportation, for the invitation and warm hospitality.

2.     Climate change is a global challenge facing the current and future generations. Around the world, the transport sector is one of the largest emitters of carbon emissions, and ASEAN is no exception. It is important that we are gathered here today to share our experiences in decarbonising the transport sector, learn from one another, and work together to create a more sustainable transport system.  

3.     While Singapore’s total domestic emissions contribute around 0.1% of global carbon emissions, we recognise that every country, big or small, must do our part as a responsible stakeholder to build a sustainable future together. We have committed to this effort and have set a target to achieve net zero emissions by 2050.

4.     In Singapore, transport accounts for about 15% of our national emissions and is our third largest source of emissions, after power generation and industry. Land transport accounts for around 13%, with air and sea transport collectively making up the remaining 2%. 

5.     While international aviation and shipping emissions do not count towards countries’ domestic emissions, we recognise that these are significant sectors to decarbonise, as collectively international aviation and international sea transport add up to about 5% of global emissions. While it is not counted towards domestic emissions, we do want to support the efforts to decarbonise as we are a major hub port, and also as an aviation hub.

a.     The International Air Transport Association (IATA) forecasts that the Asia-Pacific will be the fastest-growing region for air travel in the next two decades. 

b.     Passenger traffic is expected to grow at an annual average rate of 4.5%, which is higher than the global average of 3.3%. Within the Asia-Pacific, ASEAN is a key driver for this growth. 
 
c.     This is something that is positive and will add to our connectivity and trade, and we expect these sectors to continue growing. 

d.     What it means, is also that we must start to take steps to reduce carbon emissions, supported by science and backed by evidence, to address the climate impact from these activities.

6.     Today, I will focus on the aviation sector and what we are doing in Singapore. I will touch on three areas – Airport, Air Traffic Management, and Airlines. I am focusing on the aviation sector, as other speakers will be covering other sectors. But I am happy to take questions later if there are any on land and maritime transport.  

7.     As an aviation hub, we are committed to working in close partnership with our industry, unions and other countries to reduce our emissions, both at the domestic and international level. 

Reducing domestic emissions and energy costs at airports 

8.     On the domestic front, we are using technology to optimise our operations to reduce energy consumption. These measures not only help to reduce carbon emissions, but also benefit companies by reducing energy costs. Good for business and good for the environment.  

9.     Let me share a few areas:

a.     First, energy efficiency. Changi Airport is enhancing the energy efficiency of its buildings. For example, it is progressively replacing its chilling equipment across terminals to reduce the carbon footprint of its air-conditioning systems. We are also designing the upcoming Terminal 5 with environmental sustainability in mind, to achieve the highest standards for green buildings. 

b.     Second, cleaner energy vehicles. Today, about 20% of vehicles at Changi Airport are electric. We have set targets to gradually electrify the entire fleet at Changi. From 2025, all new light vehicles and some categories of heavy vehicles are required to be electric. By 2040, we want all vehicles at the airside at Changi to run on cleaner energy.

c.     Third, solar deployment. Today, we have around 22 megawatt-peak of solar panels installed, equivalent to about 4% of Changi Airport’s energy consumption. We will continue to maximise solar deployment to include all remaining terminal rooftops, and are studying other deployment options such as on the airfield. 

Transforming air traffic management 

10.    Next, air traffic management. Advancements in air traffic management technologies and operating concepts can also reduce carbon emissions. 

a.     For example, trajectory-based operations (TBO) will allow Air Navigation Service Providers to jointly plan and optimise an aircraft’s flight trajectory across boundaries. 

b.     This will improve flight safety and efficiency, potentially reduce fuel consumed by up to 10%, and minimise delays and disruptions. 

11.    In June this year, we successfully concluded the world’s first TBO demonstration flight with Boeing in cooperation with Thailand, Japan and the United States. We look forward to working with other Air Navigation Service Providers and industry partners to make TBO a global reality and a standard practice across as many jurisdictions as possible. 

Collaboration to develop future solutions like SAF 

12.    Let me now touch on airlines to talk about an important area, which is Sustainable Aviation Fuel (SAF). 

13.    Just last year, the ICAO agreed on a long-term aspirational goal of net zero carbon emissions by 2050, in a historic move for the sector. While new and more fuel-efficient aircraft can reduce emissions, there is clear consensus that SAF will be the main pathway in the medium term to decarbonise the global aviation sector.

14.    However, one challenge is how we scale the adoption of SAF, which is challenging due to high costs and limited global supply. IATA estimated that global SAF production in 2022 amounted to only 240,000 tonnes, less than 0.1% of the global jet fuel consumption. It is not enough and we need to ramp up supply. How can we best do this is something that we need to discuss. 

15.    Although this amount has increased significantly in 2023, including with the opening of Neste’s 1 million tonne SAF production facility in Singapore, there is still a long way to go to develop sufficient SAF capacity to meet global demand.

16.    There are encouraging signs that SAF production capacity is increasing globally and I believe that in ASEAN, we have potential for SAF production to grow, as we have the feedstock. And if demand for air travel is going to grow, I believe there will also be demand for the supply that the producers are going to bring into the market. This is an important area for us to focus on – SAF production and the ecosystem around it. 

17.    We will need countries to collaborate on this, to ensure that there is free flow of SAF and its feedstock globally, so that the international aviation industry will have sufficient supply of SAF to meet their needs.

18.    It is also important to establish a scientifically driven process to validate the sustainability of SAF feedstock. Some of the feedstock that is available in the Asia-Pacific region, such as palm by-products and residues, may not be as widely accepted in other parts of the world due to perceived environmental risks, even though they are recognised under ICAO’s CORSIA regime.  

19.    Singapore is working with Boeing and the Roundtable on Sustainable Biomaterials (RSB) and other regional stakeholders to study how ASEAN can leverage on potential feedstock in the region for SAF production. This, in my view, should include palm oil. We should take a pragmatic approach based on science and evidence, instead of an ideological approach based on pre-conceived bias and dogma.

20.    We are also developing an ASEAN Sustainable Aviation Action Plan under the ASEAN Air Transport Working Group. The Action Plan aims to drive sustainable aviation growth in ASEAN, starting from the area of SAF. 

21.    We are happy to share that the Action Plan has been endorsed at the 55th ASEAN Senior Transport Officials Meeting in June. We look forward to working with ASEAN Member States in furthering the sustainability agenda.

22.    I thank you for your attention and look forward to the Q&A session and discussion with fellow panellists. Thanks very much.