SINGAPORE – Funds totalling $2.1 billion that were raised by government-issued “green” bonds have been allocated to the Jurong Region Line and Cross Island Line that are now under construction.
Both lines support the “sustainable living” pillar of the Singapore Green Plan 2030, said the Ministry of Finance (MOF), which noted in a Sept 25 report that the funds were disbursed in the 2023 financial year.
This pillar aims to have public transport used by 75 per cent of commuters during peak hours as opposed to private transport options by 2030. The share now is about 64 per cent.
“This is a key enabler to achieve the ambitious goal of significantly reducing land transport emissions in absolute terms, in alignment with Singapore’s net-zero target by 2050,” the MOF said.
The Jurong Region and Cross Island lines are estimated to result in total carbon savings equivalent to taking at least 22,000 cars off the roads when fully operational.
The $2.1 billion allocated for the projects was raised from the 50-year Green Singapore Government Securities (Infrastructure) bond, which reopened in September 2023, with an issuance size of $2.8 billion.
The $2.1 billion comprises $1.7 billion from the first tranche of bonds issued in August 2022 and $400 million from the reopened tranche.
The remaining funds from the reopened tranche are expected to be fully allocated by the end of the 2025 financial year.
Ms Indranee Rajah, Minister in the Prime Minister’s Office and Second Minister for Finance and National Development, said in the report: “The Singapore Green Bond Framework remains a key pillar of Singapore’s efforts to channel investments into projects that will advance our sustainability efforts and contribute towards our net-zero goal.”
It was announced in Budget 2022 that the Government will issue up to