The remaining S$3.6 billion of proceeds are expected to be fully allocated to the JRL and the CRL by the end of FY2026
[SINGAPORE] Green bond proceeds worth S$2.8 billion have been allocated for the financial year 2024 to finance capital expenditure of the Jurong Regional Line (JRL) and the Cross Island Line (CRL), according to the Singapore Green Bond Report for FY2024 released by the Ministry of Finance (MOF) on Monday (Sep 29).
The remaining S$3.6 billion of proceeds are expected to be fully allocated to the JRL and the CRL by the end of FY2026, according to the third edition of the report – which details the allocation of the proceeds from Singapore’s sovereign green bonds in FY2024 and the expected environmental impact of financed projects.
Indranee Rajah, minister in the Prime Minister’s Office, Second Minister for Finance and National Development and chair of the green bond steering committee, said that the report “reflects (Singapore’s) commitment to a robust green bond programme and high-quality issuances to finance … green infrastructure”.
“Singapore will press on with comprehensive mitigation and adaptation measures to achieve our national climate targets and support sustainable development in the region,” she said.
The development of the JRL and CRL supports the Sustainable Living pillar of the Singapore Green Plan 2030, which aims to expand the country’s rail network to 360 km. This will enable the Republic to achieve its ambitions of hitting net zero emissions by 2050 and reducing land transport emissions from the peak in 2016 by 2040, the report said.
When fully operational, the JRL and CRL are estimated to yield carbon savings of between 100,000 and 120,000 tonnes of carbon dioxide-equivalent annually, the MOF said. This is equivalent to the effects of eliminating at least 22,000 internal combustion engine cars from Singapore’s roads, the ministry said.
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The green bonds allocated as at end-FY2024 amount to S$5.6 billion in total, including the S$2.8 billion worth of proceeds allocated as at FY2023. Their expected financed impact amounts to between 9,600 and 14,000 tonnes of carbon dioxide-equivalent emissions prevented annually.
The Singapore government has raised S$9.2 billion worth of proceeds from issuances of green Singapore Government Securities (SGS) since 2022.
It issued its first tranche of 30-year green SGS bonds in June 2024, with a S$2.5 billion issuance size.
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It has also issued 50-year green SGS bonds over three tranches. The first tranche was issued in August 2022, with a S$2.4 billion issuance size. The second tranche in September 2023 and the third in October 2024 had issuance sizes of S$2.8 billion and S$1.5 billion, respectively.
