Singapore green bond proceeds of $2.8b going to Jurong Region Line, Cross Island Line: MOF
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When fully operational, the JRL and CRL are estimated to yield carbon savings of between 100,000 and 120,000 tonnes of carbon dioxide-equivalent annually.
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SINGAPORE - Green bond proceeds worth $2.8 billion have been allocated for the financial year 2024 to fund capital expenditure of the Jurong Region Line (JRL) and the Cross Island Line (CRL), according to the Singapore Green Bond Report for financial year 2024 released by the Ministry of Finance (MOF) on Sept 29.
The remaining $3.6 billion of proceeds are expected to be fully allocated to the JRL and the CRL by the end of FY2026, according to the report – which details the allocation of the proceeds from Singapore’s sovereign green bonds in FY2024 and the expected environmental impact of financed projects.
Ms Indranee Rajah, Minister in the Prime Minister’s Office, Second Minister for Finance and National Development, and chair of the green bond steering committee, said the report “reflects (Singapore’s) commitment to a robust green bond programme and high-quality issuances to finance... green infrastructure”.
“Singapore will press on with comprehensive mitigation and adaptation measures to achieve our national climate targets and support sustainable development in the region,” she said.
The development of the JRL and CRL supports the Singapore Green Plan 2030’s Sustainable Living pillar, which aims to expand the country’s rail network to 360km. This will enable the Republic to achieve its ambitions of hitting net-zero emissions by 2050 and reducing land transport emissions from the peak in 2016 by 2040, the report said.
When fully operational, the JRL and CRL are estimated to yield carbon savings of between 100,000 and 120,000 tonnes of carbon dioxide-equivalent (CO₂e) annually, the MOF said. This is equivalent to the effects of eliminating at least 22,000 internal combustion engine cars from Singapore’s roads, the ministry said.
The green bonds allocated as at end-FY2024 amount to $5.6 billion in total, including the $2.8 billion worth of proceeds allocated as at FY2023. Their expected financed impact amounts to between 9,600 and 14,000 tonnes of CO₂e emissions prevented annually.
The Government has raised $9.2 billion from green Singapore Government Securities (SGS) since 2022. It issued its first tranche of 30-year green SGS bonds in June 2024, worth $2.5 billion.
It has also issued 50-year green SGS bonds over three tranches. The first was in August 2022, worth $2.4 billion. The second in September 2023 and the third in October 2024 were worth $2.8 billion and $1.5 billion, respectively. THE BUSINESS TIMES
