Your carbon footprint, that is - and here’s how
Howard Shaw Executive Director, Singapore Environment Council
Today Online 5 Jun 09;
THE theme for World Environment Day 2009 - “Your planet needs you to UNite to combat Climate Change” is an ideal platform to examine the efforts that we can make, individually and collectively, to contribute to efforts to combat global warming. With Singapore having one of the world’s largest carbon emissions per capita, it is important to explore carbon offset possibilities in order to fight climate change.
“Carbon Trading” was the key mechanism developed by the Kyoto Protocol to restrict greenhouse gas emissions, and to encourage individuals, organisations and countries to adopt cleaner energy mechanisms. Since carbon reductions have the same positive impacts on the environment no matter where they are achieved, Singapore has great potential to contribute to global efforts despite its size.
Singapore still has a long way to go in the field of renewable energy; currently only about 1 per cent of the total energy generated in Singapore is renewable. However, we are advantageously positioned to implement home-based carbon offsetting projects due to our location and established reputation for business excellence.
Carbon trading involves the sale of carbon credits to companies seeking to lower their carbon footprints on a voluntary basis. One carbon credit equates to one tonne of carbon, and is currently valued at around $42. These credits, purchased by lending support to Clean Development Mechanism projects, help offset the climate change-related impacts of organisations and individuals. A sizeable number of these projects are located in developing Asian countries such as India, Malaysia and China - hence, Singapore is strategically positioned to be a regional carbon credit consolidator and trading hub.
The carbon trading industry is booming here. Companies specialising in carbon trading, such as the Asia Carbon Group, EcoSecurities and the CarbonNeutral Company, have been drawn to Singapore. Along with excellent investment banking and risk management services, Singapore’s political stability, government transparency and financial support for the private sector have been cited as attractions.
Government efforts to nurture a green economy have been commendable - the Singapore Mercantile Exchange was set up in 2007 to facilitate carbon credit trading. The Government also supports companies who undertake carbon credit-generating projects, in the form of tax breaks and funding. These projects benefit companies three-fold: it improves their environmental performance, results in visible energy and cost-savings, and boosts their corporate responsibility profiles.
There are also measures in place to help individuals and small organisations lead a low-carbon lifestyle. For example, individuals can sponsor the planting of trees via the Garden City Fund, or by purchasing carbon-credits on a small scale.
While carbon credits are an important means of encouraging companies to reduce their overall environmental impact, the system has also been criticised as being difficult to regulate, due to the carbon credits being difficult to validate. The efficacy of carbon credit-generating projects may also be less than initially estimated. Bearing these shortcomings in mind, it is important to renew our individual efforts to lead a low-impact lifestyle through responsible consumerism, public transport and implementing energy and water-saving measures in the home and office.
On July 1, The Singapore Environment Council will launch a major climate portal (www.climatechange.sg) for Singapore and the region, which will include a range of carbon-offsetting projects. Users will be able to access carbon-offsetting solutions through different providers and learn more about the need for carbon offsetting and climate change-related issues in general.
This World Environment Day, I urge Singaporeans to renew their commitment to protecting the planet, through efforts in their daily lives, and by exploring carbon-offsetting options to reduce global greenhouse gas emissions.
