Singapore Won’t Draw from Climate Fund Despite Major Coastal Protection Investments: Grace Fu

DUBAI – Singapore will refrain from claiming from the international fund dedicated to compensating countries for climate change-induced loss and damage, despite heavy investments in coastal protection. Speaking at the COP28 climate talks on Dec 11, Minister for Sustainability and the Environment Grace Fu shared that Singapore, though allocating an estimated S$100 billion in coastal defenses, will instead assist its fellow Alliance of Small Island States (Aosis) members in obtaining the technical support needed to access these funds.

“Rather than drawing on the fund, we hope to support our Aosis allies—many of whom struggle with technical capacity—to secure essential financial assistance,” Fu explained. Singapore’s unique role involves aiding small island nations in climate adaptation plans, especially in addressing vital areas such as food and water security. Currently, at least US$790 million has been pledged to the fund, managed by the World Bank, targeting developing countries most affected by climate change impacts.

Although Singapore qualifies as a recipient under the fund due to its classification as a developing nation, youth climate groups had earlier argued against it claiming funds, as it could detract from resources for countries in more dire need. Fu also highlighted that Singapore’s contribution is focused on leveraging its resources to multiply impact, as seen in initiatives like the Financing Asia’s Transition Partnership, a US$5 billion fund aimed at advancing clean energy and sustainable projects across Asia.

As a facilitator for COP28 mitigation discussions, Fu is also working with global leaders on commitments to reduce greenhouse gas emissions, a key element of the Paris Agreement. She emphasized Singapore’s commitment to a balanced approach to energy transition, which includes increasing reliance on renewable imports from the region and exploring green hydrogen solutions, though fossil fuels remain necessary in the immediate term for national energy security.