Download speech by dpm - National Archives of Singapore

Please check against delivery
SPEECH BY DEPUTY PRIME MINISTER AND CO-ORDINATING MINISTER
FOR NATIONAL SECURITY PROF S JAYAKUMAR AT OPENING OF THE
2ND SINGAPORE ENERGY CONFERENCE ON 4 NOV 08 AT 9.10AM,
RAFFLES CITY CONVENTION CENTRE
“ENERGY IN AN AGE OF CITIES”
Excellencies,
Ladies and gentlemen,
1.
I opened the inaugural Singapore Energy Conference in November
2006. Since then, the world has witnessed significant changes in the global
economic landscape. The current financial crisis that started in the US has
caught many countries off-guard. This has resulted in a global credit crisis and
fears of a prolonged recession. The effects of this crisis on the real economy
are still unfolding.
2.
Likewise, the global energy landscape has also changed in equally
dramatic ways. Oil has not been spared – after a relentless surge over an 18month period brought oil prices to a record high of just over US$147 a barrel
in July, prices have since slid to just under US$70, on the back of a global
economic slowdown and softening demand. However, this downward trend
may not continue in the medium to long term.
3.
Climate change has also emerged as a key challenge, impacting
both the energy landscape as well as the broader political agenda for many
countries. The combination of constraints from tightening fossil fuel supplies,
and the increasing need to reduce carbon emissions, will likely result in a
“carbon-constrained world”. We will need to move beyond country-level
analysis if we are to understand and develop sustainable development and
energy solutions that will enable us to survive and flourish in such an
1
environment. Hence, it is apt that the theme of the second Singapore Energy
Conference is “Powering Cities of the Future”.
An Age of Cities – Challenges and Opportunities
4.
Today, we live in an age of cities. By 2030, 60% of the world’s
people will live in urban communities for the first time in human history. The
cities of today and those of tomorrow will be bigger than ever. A megacity has
more than 10 million inhabitants. There were 14 megacities in 1995. In 2000,
there were 18 megacities, including Tokyo, Shanghai, New York City, Los
Angeles, Mexico City, Buenos Aires, Mumbai, São Paulo, and Karachi. By
2015, there are likely to be 21 or more megacities.
5.
Megacities can rival entire countries in terms of their population size
and resource consumption. Greater Tokyo has 35 million inhabitants, which is
greater than the entire population of Canada. London uses more energy than
Ireland, and as much as Greece or Portugal. The 20 largest cities in the world
have a combined population of almost 370 million people, more than in the
entire USA. The face of urbanisation is also changing. In the coming decades,
global growth may no longer be underpinned by traditional OECD economies.
Instead, the UN estimates that by 2010, the majority of the world’s megacities
will be in the developing countries of Asia and Latin America.
Powering Cities of the Future
6.
Increased urbanisation is a positive development in many aspects.
Urban infrastructure can set the stage for economic growth, generating
employment and enabling countries to diversify their economic structures
beyond agriculture to manufacturing and services. While the economies of
scale within cities can enhance productivity, the industrialisation and
urbanisation of emerging economies such as China and India will also result
in the rapid growth of global energy demand. The International Energy
Agency (IEA) predicts that these two countries will account for about 45% of
the increase in global energy demand between 2005 and 2030.
2
7.
Cities represent just 2% of the world’s surface area, but account for
about 75% of the world’s energy consumption. This poses significant
challenges for policymakers. First, the modern city cannot function without
vast quantities of energy, to power everything - from lighting, heating and
cooling, to transportation, electronic equipment and industrial machinery.
Second, commercial and social activities in many cities run around-the-clock
and therefore require stable and reliable energy supplies. The key challenge
for the world’s rapidly-developing cities is to ensure that their urban planning,
energy supplies, water and waste management, transport systems, and
infrastructure can cope with the anticipated growth. This will determine the
quality of life for most people in the future.
8.
While the growth of cities pose challenges, they can also offer
solutions. Cities can be at the forefront of global efforts to improve energy
technology and innovation. Cities should serve as clean technology testbedding and R&D hubs. They can leverage upon their concentrations of
technological and scientific talent and access to capital markets and funding.
9.
Singapore is doing our part. We have allocated significant
government funding to facilitate energy R&D and test-bedding, including
S$170 million from the National Research Foundation. In line with our effort to
develop our clean energy industry, Singapore is also developing a new
Cleantech Park at Jalan Bahar for clean technology R&D, prototyping and
light manufacturing. The site is located in the Northwest of Singapore next to
the Nanyang Technological University (NTU) to maximise synergies. It will
allow test-bedding of products and solutions for the tropics, including ideas
that are replicable for global markets. It will also achieve a low resource
consumption, low waste, and low emissions footprint through green buildings,
renewable energy and clean technologies. The first building is targeted for
completion in 2010. These initiatives will facilitate the commercialisation of
promising new technologies that can meet urban energy needs in a
sustainable manner.
Towards Sustainable Cities
3
10.
While we need to develop new energy sources to meet the growing
needs of the world’s cities, improving energy efficiency and doing more with
less are key to creating sustainable cities. Efforts in this direction, along with
steps taken to increase public awareness of the need to conserve energy are
also important.
11.
Cities, especially those in developed countries, have some inherent
advantages in this area. In 2005, New York City’s carbon emissions were only
around 1% of the US’ total, despite generating a “gross city product” valued
by Forbes Magazine at US$1.1 trillion, or approximately 9% of the US
economy. This is primarily because urban populations tend to live in closer
proximity, presenting economies of scale in public transportation, district
heating and cooling, and the internal distribution of goods and services. While
New York is clearly an exceptional case, other cities can leverage upon their
unique advantages and reduce energy demand through sound policies, good
governance and prudent stewardship of natural and shared resources. Cities
must aim to be sustainable in the long-term, achieving economic development
and growth while keeping their environmental impact to a minimum.
12.
the
These efforts by cities will help address climate change, which is
world’s
greatest
environmental
challenge
today.
The
UN
Intergovernmental Panel on Climate Change (IPCC) has assessed that
warming of the climate system is “unequivocal”. Addressing this challenge will
not be an easy task, especially in the face of a global economic slowdown.
Unlike localised atmospheric pollutants such as sulphur dioxide, CO2
emissions that contribute to the greenhouse effect constitute a “Global
Commons” problem.
13.
The solution must hence be collective, with all parties playing a role.
It is imperative that Annex 1 developed countries set the pace by fulfilling their
Kyoto Protocol obligations. For developing countries, any realistic solution
must recognise the vital importance of economic growth and poverty
alleviation. Growth will provide the resources for countries to mitigate and
adapt to climate change. Measures to combat climate change must be
4
sustainable over the long run. Hence, they must be based on costeffectiveness and sound economic principles.
14.
We
must
also
recognise
the
common
but
differentiated
responsibilities of countries as we work towards a global agreement. Any
solution must recognize the diversity of national circumstances.
15.
Take Singapore as an example – an island city-state of just 700
square kilometres with no hinterland, Singapore is smaller than Lake Geneva
in Switzerland and about one-fifth the size of Long Island in New York. Even
cities like Tokyo, London and Sydney are two to three times larger. With a
population of 4.8 million, Singapore is one of the most densely populated
countries in the world. Our small land area, slow wind speeds, lack of major
rivers and high urban density limit our ability to switch from fossil fuels to lowcarbon alternative energies such as geothermal, wind, hydroelectric, solar,
and nuclear energy.
16.
Despite
environmentally
these
sensitive
limitations,
approach
Singapore
to
national
has
adopted
development
an
through
innovative and integrated solutions in the areas of urban planning, transport,
housing, and waste and water management.
17.
First, to drive energy efficiency improvements in the various sectors
of power generation, industry, transport, buildings, and households, we have
established the Energy Efficiency Programme Office (E2PO), a multi-agency
committee led by the National Environment Agency (NEA).
18.
Second, to reduce the growth of carbon emissions, Singapore has
increased the use of natural gas to produce electricity, as it emits less CO2
than fuel oil per unit of energy. We have also encouraged the use of
advanced co-generation and tri-generation facilities with greater efficiencies.
We have implemented tough policies, like controlling our vehicle population
with Certificate of Entitlements (COEs) and traffic volumes through Electronic
5
Road Pricing. Our waste is incinerated, which provides about 2% of our
electricity and reduces landfill emissions of methane.
19.
While Singapore accounts for just 0.2% of world emissions, we
have contributed to global efforts to address climate change through these
measures. Cities can and should collaborate to share best practices,
templates and models for sustainable development. For instance, Singapore
and China are jointly developing the Tianjin Eco-city project.
20.
Singapore is also creating new avenues for cities to share their
expertise and experiences with one another. Through such events as the
World Cities Summit and the Singapore International Water Week, we hope to
encourage more cities to come forward and tackle these multi-faceted
challenges.
Conclusion
21.
Lest we imagine that overcrowded, polluted cities are somehow the
inevitable fate of its residents, it is worth recalling that in previous centuries,
cities like London, Paris and New York were blighted by smog, overcrowding,
lack of sanitation and disease outbreaks. They rose to the challenges before
them, and are now among the world’s proudest cities. Solutions have been
found before.
22.
Today’s conference will examine two important and inter-related
questions. First, how do we ensure stable, secure energy supplies to power
cities of the future? This question deals with the supply side of the equation.
Second, and no less important, what role can cities play to minimise their own
energy needs and enhance their sustainability? This is the demand side of the
equation.
23.
The ultimate solution to powering cities of the future must involve a
gradual transition from the global reliance on fossil fuels to a more balanced
distribution of energy sources and greater adoption of renewable energies.
Cities can also focus on reducing energy consumption and emissions through
6
proactive and market-based measures. I would like to commend the Energy
Market Authority and the Energy Studies Institute for co-organising this year’s
Singapore Energy Conference. This provides a platform for policymakers,
energy industry players and experts to discuss relevant energy and climate
change issues, and share ideas. It is a necessary first step towards a
workable global solution.
24
I wish all participants a fruitful conference.
7