Environment
Banking Act should strive towards building “a sustainable and resilient financial system”: Anthea Ong
Nominated Member of Parliament (NMP) Anthea Ong, in her speech in Parliament last Monday (6 Jan), supported the Banking (Amendment) Bill that “seeks to remove the two-tiered banking system” and “consolidate the licensing and regulation of merchant banks”.
“Yet there is one significant and glaring development that we must talk about”, she said.
“With the growing prevalence of climate-induced events in the world and specifically in our region, there is an urgent need to safeguard financial assets yet be innovative in legislative interventions to reduce future risks to Singapore’s banking industry.”
She urged the Monetary Authority of Singapore (MAS) to take action on the matter as the Network for Greening the Financial System (NGFS) warned that climate risks could be more devastating, prevailing, and unpredictable than “any other structural change”.
“Regulatory frameworks around climate-related risk management will allow for a systematic adoption of practices for the accelerated transition towards a sustainable banking sector”
Quoting Education Minister Ong Ye Kung’s speech last November, Ms Ong suggested more can be done in “measuring, mitigating, and disclosing these risks” for Singapore to attain “a sustainable and resilient financial system”.
In terms of measuring risks, she urged “banks to obtain carbon emissions-related data and estimate their borrower’s exposure to carbon regulation and transition risks”, so that “such data” can “be used for carbon risk assessment and be mandated for reporting” by companies listed in Singapore Exchange (SGX).
Focusing only on high-carbon assets may be “a good first step but still insufficient”.
“As a former corporate banker myself, I would even push for data collection beyond just carbon emissions data”, she added, “our bankers must also obtain information from borrowers to understand where business value could be at risk”.
She added that “metric selection is also critical” and used the 2011 floods in Thailand as “a critical example of how risks could be embedded in the supply chain and may not be obvious through a carbon data metric”.
To combat this, she recommended having an “ASEAN taskforce that embarks on a bottom-up modelling of business risks from climate change across our region, including the supply chain impacts across borders”.
MAS should also “support the banking industry with centrally-developed stress test scenarios that incorporate the views of experts and civil society”, she stated.
Ms Ong explained that “mandatory standards in Singapore and international alignment are key signposts” to ensure the banking industry “is robustly equipped to mitigate environmental, social and governance risks, particularly around climate change”.
“Bangladesh already has a mandatory environmental risk management guideline for Bangladeshi banks.
“While the Association of Banks in Singapore, or ABS, has Responsible Banking Guidelines and a haze toolkit” that are voluntary, she elaborated.
In terms of international alignment, she said, “only one Singapore bank is a signatory to the Equator Principles and none have signed the United Nations’ Principles of Responsible Banking”.
Quoting the Governor of the Bank of English Mark Carney, who said that “climate disclosure must become comprehensive” to involve climate risks in financial decision making, Ms Ong stated that “we should also consider the disclosure of climate risks”.
In a review by World Wide Fund for Nature (WWF) Singapore on ASEAN Sustainable Banking Regulations, “only Malaysia has firmly expected banks to assess,mitigate and publicly disclose their portfolio-level exposure to material environmental and social or E&S risks (including climate risk)”.
“Singapore should be requiring our banks to do the same,” she added, which is why Taskforce for Climate-related Fiancial Disclosures (TCFD) should mandate “a timeline” for “disclosures for financial industries as well as listed companies”.
“Plans for national green banks and green financing, including the standards for green loans” should be established
Ms Ong noted that green investments can be “a business opportunity, accelerating the growth of green finance” that “reduces instability to our financial system in the future”.
“While our Singapore banks have all been highly positive on the green finance opportunities—a number of countries have established national green banks to provide initial funding to develop clean energy, transport, energy efficiency markets.
“In its latest annual report, CEFC has made A$2.3 billion of commitments, and every A$1 spent, has brought in A$2 of accompanying private investment.”
Singapore should have sustainable finance as “a key component” of the “digital bank roadmap”
“With the opening of five digital bank licenses by MAS—we must, therefore, incentivise and harness the innovative essence of these new digital partnership—to encourage collection and use of new data” and “to create new sustainable financing solutions”, Ms Ong said.
The Sustainable App, which was launched by the International Netherlands Group (ING) Real Estate Finance (REF) and its partner, “helped identify 35 million Euros of potential energy cost savings within its real estate portfolio”, she elaborated.
Quoting Aviva Chief Investment Officer David Cumming, who said that “[understanding climate risk] isn’t an exercise in trying to save species and habitats—this is also about protecting people’s retirement income and their investments”, she said that they “absolutely cannot let such risks build-up with little or no visibility”.
“We must act with the fierce urgency”, she added, “to build a climate-change resilient, robust and responsible financial industry for Singapore”.
It was highlighted earlier in recent study by the Environmental Study Centre in Riau University, that Singaporean banks financed S$1.9 billion to 17 Indonesian companies linked to the 2019 fires that blanketed the country and its neighbours in a toxic haze.
Among all Singapore banks named in the study, Oversea-Chinese Banking Corporation (OCBC) was the fifth largest overall financier of the 17 companies linked to the 2019 fires, providing US$960 million (S$1.3 billion) in finance to four palm oil companies. The Development Bank of Singapore (DBS) also provided S$281 million to finance another three palm oil companies.
Environment
Hurricane Milton ravages central Florida, sparking tornadoes and power outages
Hurricane Milton hit Florida on 9 October, making landfall as a Category 3 hurricane. It caused widespread destruction, tornadoes, and power outages affecting nearly two million people. The storm’s impacts are felt across the state, including flash floods, damaged homes, and evacuation efforts.
Hurricane Milton swept across central Florida on 10 October, after making landfall on the state’s west coast the previous evening, causing extensive damage with strong winds, heavy rain, and tornadoes.
The storm initially struck near Siesta Key on 9 October at approximately 8.30 pm EDT (8.30 am Singapore time on 10 October), with winds reaching 195 km/h, classifying it as a Category 3 hurricane, according to the US National Hurricane Centre.
As the hurricane continued eastward through Florida, it weakened to a Category 1 storm by early 10 October, with maximum sustained winds of 150 km/h.
Despite this downgrade, the danger remained high, with severe rainfall and significant storm surges. The hurricane’s eye was about 75 km west-southwest of Cape Canaveral, which houses Nasa’s Space Force Station, at the time.
A flash flood emergency was declared for the Tampa Bay region, covering Tampa, St Petersburg, and Clearwater. The National Hurricane Centre reported that St Petersburg alone experienced 422 mm of rain on 9 October. Authorities warned that seawater could surge as high as 4 metres in certain areas, potentially inundating coastal communities.
Governor Ron DeSantis expressed hope that Tampa Bay would avoid the worst of the storm’s effects due to the timing of landfall before high tide.
However, Milton had already unleashed at least 19 tornadoes across the state, damaging numerous counties and destroying around 125 homes, including many mobile homes. “At this point, it’s too dangerous to evacuate safely, so you have to shelter in place and just hunker down,” Mr DeSantis said during a briefing following the storm’s landfall.
Tragically, at least two fatalities were reported at a retirement community in Fort Pierce on Florida’s eastern coast, following a suspected tornado, as cited by NBC News and St Lucie County Sheriff Keith Pearson.
The sheriff estimated that approximately 100 homes were destroyed by the tornadoes in the county, which saw about 17 touch down.
The hurricane caused significant power outages, leaving more than two million homes and businesses without electricity, according to data from PowerOutage.us. The storm was projected to move across Florida overnight before entering the Atlantic Ocean on 10 October, still maintaining hurricane strength.
Wow! My cousin sent this to me by a neighbor of his of the tornado that struck Wellington, FL from earlier today. Incredible speed & power that tornado possessed. #HurricaneMilton #flwx pic.twitter.com/QnF8hRQTQo
— Thee 🌪ornadorologist (@tornadorology) October 9, 2024
The arrival of Hurricane Milton comes just two weeks after Hurricane Helene battered the southern United States, including Florida. State officials had already ordered the evacuation of up to two million residents ahead of Milton’s impact, with millions more remaining in its path. The cumulative damage from both hurricanes is expected to reach billions of dollars.
Florida’s recovery efforts were bolstered by federal support, with President Joe Biden being briefed on the situation by emergency response teams.
The Federal Emergency Management Agency (Fema) has mobilised significant resources, including millions of litres of water, meals, and personnel, to assist those affected by Milton, even as it continues recovery work following Hurricane Helene.
Governor DeSantis confirmed that 9,000 National Guard personnel and 50,000 utility workers were deployed to aid in clearing debris and restoring power. Search-and-rescue teams were on standby to begin operations as soon as conditions allowed. “It’s going to mean pretty much all the rescues are going to be done in the dark, in the middle of the night, but that’s fine. They’re going to do that,” he added.
Despite these efforts, the damage from Hurricane Milton remains severe. High waves nearing 8.5 metres were recorded offshore, while boats were beached in St Petersburg, adding to the destruction.
Many parts of Florida faced fuel shortages, with almost 25% of petrol stations running dry by the afternoon of 9 October as residents evacuated.
While the human toll is the most pressing concern, other local efforts included protecting animals at Tampa’s zoo, where staff sheltered African elephants, flamingos, and other species.
The zoo joined residents in bracing for the worst, highlighting the widespread impact of the hurricane.
Political Controversy Surrounding Federal Response
The hurricane’s approach has also intensified political disputes, particularly as the US prepares for elections.
President Biden condemned the spread of disinformation regarding the government’s hurricane response, describing it as an attempt to “undermine confidence” in rescue and recovery efforts.
Former President Donald Trump has been critical of the Biden administration’s handling of disaster relief, especially following the impact of Hurricane Helene.
Trump claimed that resources intended for disaster victims had been diverted to assist migrants, a claim which Fema has categorically denied, emphasising that no disaster relief funds were diverted for this purpose.
Fema noted that its Disaster Relief Fund remains separate from budgets designated for migrant assistance.
In a highly charged political climate, these statements have led to further scrutiny of the federal response. Nonetheless, Fema asserts that it has the resources necessary for immediate response and recovery operations following both hurricanes.
Environment
Singapore launches 15-month biodiversity monitoring plan after oil spill
Researchers in Singapore have initiated a 15-month monitoring plan to assess the impact of the June 14 oil spill on intertidal biodiversity. The effort, led by the National University of Singapore (NUS) and involving several institutions, aims to understand the effects of the spill on marine life in affected coastal areas, including East Coast Park and Sentosa.
Researchers in Singapore have embarked on a 15-month plan to study the environmental effects of the June 14 oil spill on intertidal areas, aiming to understand its impact on biodiversity.
The national plan was announced by Minister for National Development Desmond Lee on 8 October 2024, during a marine science workshop held at the National University of Singapore (NUS).
This initiative will involve multiple local institutions, including the National Parks Board (NParks), St John’s Island National Marine Laboratory, and the National Institute of Education (NIE).
The research team will focus on monitoring the impact of the oil spill on various intertidal areas, which include East Coast Park, Labrador Nature Reserve, and Sentosa.
Additionally, the study will incorporate data from beaches not directly affected by the spill, such as those at Changi Beach Park and Coney Island Park. According to NParks, this approach will enable researchers to compare data and isolate the specific impact of the oil spill on marine life.
Focus on Intertidal Biodiversity
The research involves collecting and analysing sediment samples from both affected and unaffected coastal areas.
Dr Tan Koh Siang, a principal research fellow at NUS Tropical Marine Science Institute (TMSI), highlighted the importance of the study, noting that the oil spill’s impact could range from smothering tiny organisms to disrupting their physiological functions due to exposure to toxic chemicals.
“These [organisms] have not really been looked at, so we are interested to see what effects the oil has on these communities that are not visually obvious,” Dr Tan said.
The process will include sieving sediment samples to identify and count various invertebrates, such as small crustaceans, worms, and molluscs. These data will provide insights into the community structure of these organisms, forming a baseline for future studies on environmental changes and the resilience of Singapore’s coastal ecosystems.
Details of the Oil Spill
The June 14 oil spill occurred when the Netherlands-flagged dredger Vox Maxima collided with the stationary bunker vessel Marine Honour at Pasir Panjang Terminal.
The incident resulted in the release of approximately 400 tonnes of low-sulphur fuel oil into the sea.
The spill subsequently spread to several biodiversity-rich areas along Singapore’s southern coast, including Sentosa, Labrador Nature Reserve, the Southern Islands, and East Coast Park. By 16 June, the oil was sighted off the coast of Changi as well.
The spill coincided with a marine heatwave, which had led to a bleaching event affecting about 40% of hard corals in the shallow waters of the Southern Islands.
This overlap between the oil spill and environmental stressors like increased sea-surface temperatures has made monitoring efforts more crucial, as the long-term impact on local marine life could be compounded.
Extended Monitoring and Marine Environment Sensing Network
In addition to sediment sampling, researchers plan to leverage existing research initiatives, such as the Marine Environment Sensing Network (MESN).
This project involves deploying research buoys that monitor seawater conditions, including temperature, salinity, acidity levels, and nutrient concentrations.
Currently, one buoy is deployed off St John’s Island, with plans to install two more in the coming months.
Dr Jani Tanzil, facility director of St John’s Island National Marine Laboratory, noted that this data would help in understanding environmental changes and could differentiate between the ecological impacts of the oil spill and other disturbances like the heatwave.
Government Response and Recovery Efforts
Minister Desmond Lee emphasized the need for sustained monitoring efforts to assess both the immediate and longer-term effects of the oil spill.
“While there’s been no significant impact on our marine biodiversity observed thus far, there could be a time lag between the incidence of the oil spill and its effect on biodiversity… We need to continue to monitor the impact, and the recovery, of our marine habitats,” he said.
The data from this monitoring phase will inform potential mitigation and restoration strategies, helping to protect biodiversity-rich areas along Singapore’s coastlines. These efforts will be vital in guiding the recovery of affected ecosystems and ensuring that similar incidents are managed effectively in the future.
Clean-Up Operations
In the weeks following the spill, Singapore undertook extensive clean-up efforts.
On 3 September 2024, Grace Fu, Minister for Sustainability and the Environment, shared an update on Instagram, stating, “I am happy to share that we have completed our clean-up at public spaces from the effects of the oil spill that happened on 14th June. 800 cleaning personnel, 2,300 volunteers, 3,750 tonnes of debris later, we have completed the task for cleaning, ahead of schedule! 💪”
In August 2024, Dennis Tan Lip Fong, Member of Parliament for Hougang SMC, inquired about the status of beach and coastal clean-up operations during a parliamentary session. Minister Grace Fu provided an update, stating that the clean-up is progressing well, with some beaches reopening for activities. The first phase of the operation has concluded, while the second phase focuses on areas with oil trapped deeper in the sand and more challenging spots like rock bunds and breakwaters. Volunteer efforts are also being mobilised to accelerate the reopening of beaches, with the clean-up expected to complete within a month.
However, when pressed for details on clean-up costs and the financial impact on local businesses, Minister Grace Fu noted that the government has yet to finalise expense calculations. She added that the immediate focus remains on completing the clean-up operations and restoring normalcy to affected coastal areas.
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