Singapore is planning to phase out internal combustion engine vehicles by 2040, as part of the Singapore Green Plan. In the meantime, significant incentives have been provided for electric vehicle (EV) adoption.
During his Budget speech, Finance Minister Lawrence Wong shared that the EV share of new car registrations jumped from 0.2 per cent in 2020 to around 4 per cent last year.
He said more charging points will be built closer to where people live, to further accelerate EV adoption. Green bonds can provide the financing for the necessary infrastructure upgrades.
The public sector will contribute to developing a robust green market by issuing up to S$35 billion in green bonds by 2030 to fund public sector green infrastructure projects.
This will include bonds issued by the Government and statutory boards. Mr Wong said the Government will publish a Singapore Green Bond Framework and issue its first green bond later this year.
Featured Image Credit: SP Group