S$700 million in proceeds from first sovereign green bonds put towards expansion of Singapore’s rail network

With the land transport sector currently accounting for about 15 per cent of carbon emissions in Singapore, MOF said in its report that the expansion of public transport infrastructure and electric rail network is key to reducing carbon footprint in this sector.

“The expansion of Singapore’s electric rail network will enhance connectivity and encourage more commuters to take mass public transport,” the Monetary Authority of Singapore (MAS) added in a separate press release in August 2022.

The development of the JRL and the CRL supports the “Sustainable Living” pillar of the Singapore Green Plan 2030, which targets to achieve 75 per cent mass public transport modal share. 

“The expansion of our electric rail network is a key enabler to achieve our ambitious goal of significantly reducing land transport emissions in absolute terms, in alignment with Singapore’s target to achieve net zero by 2050,” said Ms Indranee.

MOF said when both lines are fully operational, it will result in total carbon savings of between 100,000 and 120,000 tonnes of carbon dioxide equivalent annually.

“This is equivalent to taking 22,000 cars off Singapore’s road.” 

MOF said in its report that it engaged an independent consultant, Morningstar Sustainalytics, to develop a methodology to compute the avoided greenhouse gas emissions and air pollutants, as a result of investments in the electric rail projects. 

It added that the project emissions avoided ranged from 100,000 to 120,000 tCO2e of greenhouse gas (GHG) emissions per year and the financed emissions avoided ranged from 1,200 to 1,800 tCO2e of GHG emissions per year. Both figures were rounded to two significant figures.

Annual updates on the estimated impact will be provided in future green bond reports, MOF said.