Singaporean Minister for Sustainability and the Environment Grace Fu Hai Yien
Taxing Carbon Emissions
As the carbon tax in Singapore has already been in place for several years, it now approximately covers 71-80% of the nation’s total emissions accompanied by the fuel excise duties. The carbon tax serves as the backbone of Singapore’s climate mitigation strategy. The tax is currently applied to major facilities in the manufacturing, power, waste and water sectors. It has incentivised companies to pursue energy efficiency, invest in low carbon technologies, reduce greenhouse gas footprint, and begin planning for long term emissions reductions. Major emitters such as refineries and power plants have reported operational changes to cut crude refining by half and opt for carbon capture and storage. The increased carbon tax in 2024 also sent a stronger price signal to polluters raising S$642 million, partly offset by rebates to energy heavy industries.
However, the full potential of the tax has been constrained by several structural weaknesses and policy decisions. Critics have pointed to the initially modest rate of S$5 per tonne between 2019-2023 as being too low to make any meaningful change and framed it as a missed opportunity for early action. While the government defended this initial rate as necessary to begin a shift others argue that it diminished Singapore’s credibility as a climate leader. Despite this, the policy has created a foundation for a deeper shift in Singapore’s policies sending a clear message that renewable and clean energy is the new direction for the city state.
Furthermore, the tax has had a significant impact on Grace Fu’s credibility as a climate leader. By leading the expansion of Singapore’s carbon pricing she has demonstrated policy leadership that aligns with sustainability while understanding the economic side, an approach that is consistent with her background from corporate leadership to public service. Nevertheless, it is not to say that the policy has not faced scrutiny. Stakeholders in the industry argue that the tax increases production costs and could lead to carbon leakages.
In 2022 after Fu’s speech Carbon Pricing (Amendment) Bill 2nd Reading Closing Speech it created a debate between herself and Jamus Lim, a member of the Singapore parliament for the Workers’ Party on how to best increase the tax overtime. The pair argued on what is the right way to make the tax more progressive. To resolve this issue the government introduced transitory rebates of up to 76%, effectively reducing the S$25/tCO₂e rate to as low as S$6–10/tCO₂e for some firms. These rebates created controversy as it has decreased the predicted revenue generated by more than 30%. This underperformance in the policy complicates Fu’s leadership as it undermines the effectiveness of the policy. Additionally, the scope of the tax is limited to only direct emissions leaving out crucial aspects including emissions from purchased electricity and the ones embedded in global supply chains. This is very important in Singapore as it’s a global hub involving a lot of trading and underrepresents the nation’s real carbon footprint.
Although, Singapore’s carbon tax significantly impacts the domestic emissions of the country its total greenhouse gas emissions only affects about 0.1% of global emissions due to the country’s small size. Nonetheless, the impact of the policy can be much greater. As the first Southeast Asian country to implement a carbon tax, Singapore has positioned itself as a climate leader and Fu’s advocating for a progressive tax signals to neighboring countries that sustainability and economic growth can coexist. However, this potential influence is threatened by the country’s reliance on carbon credits. For instance many stem from REDD+ projects where there are inflated baselines and weak verification systems which can create uncertainty on the actual emissions. In fact, reports have revealed that 94% of rainforest credits certified by Verra were “worthless”.
Grace Fu has defended Singapore’s Memoranda of Understanding on international carbon credits, arguing that such partnerships are essential for meeting the net zero goals in a carbon constrained economy. She has insisted that the country is committed to adopting stricter verification standards, promising alignment with Article 6 of the Paris Agreement which requires transparency. Fu has also stated that Singapore will only recognize credits that meet high environmental integrity; emphasising the importance of credible offsets to ensure genuine emissions reductions while maintaining public trust in the carbon pricing framework.
Enhancing Nutritional Sovereignty
This section outlines the efforts undertaken to implement the 30-by-30 initiative, developing high-tech agricultural facilities, investing in capital and providing outlets for the agri-tech industry.
To begin with, Singapore focused its efforts on the development of high-tech facilities. The The Lim Chu Kang (LCK) Master Plan was launched in October 2020, in an area in the North-West of the island, spanning around 390 ha of land to ‘raise food production in a sustainable and resource-efficient way’. After the consultation process in 2021 and up to mid 2023, the area was conceived as planned. It contains an innovative stacked farm concept which will optimise land use, a district cooling facility to provide cooling needs for farms and reduce energy consumption; and a centralised waste treatment facility to process farm waste collected from the district and reduce the negative impact on the environment.
Moreover, Singapore also focused on investing in capital. The Singapore Food Story R&D Programme was launched in 2019, to foster the collaboration of the research ecosystem. The programme developed fish feed, to increase the growth rate, and vaccines to improve the disease resistance of the Asian Sea Bass. It also created a genome-edited leafy vegetable suite for urban farming.
Furthermore, the Aquaculture Plan was launched in November 2024 to counter the several challenges faced by this industry, such as limited sea space, suboptimal water quality and a limited domestic market with strong import competition. The objective is to transform the industry into a more productive and sustainable sector, through the careful consideration of competing sea uses and ecological sensitivities when selecting sites, the development of resilient infrastructures and regulations.
Finally, Singapore provided the agri-tech industry with outlets, implementing green labels and recognition programs. The SFA introduced in February 2022 the label SG Fresh Produce (SGFP) found on locally and/or sustainably produced food in supermarkets. The SFA also launched in 2023 the Farm-to-Table Recognition Programme (FTTRP) that recognises food businesses in the HoReCa (hotels, restaurants and caterers) sector that support local produce, procuring at least 15% of local produce in different food categories. These incentives bear fruits, as Singaporean supermarkets, such as FairPrice, Ryan’s Grocery, HAO Megamart, Redmart, Cold Storage, Prime and Sheng Siong increase their supply from local producers.
The 30-by-30 initiative fostered innovation in the agri-tech industry. In 2019, 220 farms produced 14 percent of leafy vegetables Singapore consumes, 26 percent of eggs and 10 percent of fish. Since then, a number of start-ups, such as Artisan Green, Green Harvest, Kin Yan Agrotech, Universal Aquaculture, Ubertas Agritech, or Sky Greens partnered with government agencies to enhance sustainable farming, through the high-tech farming toolbox initiative, with the objective to develop production capabilities.
The 30-by-30 initiative tackles climate change from a global perspective. Aiming to produce 30% of Singapore’s food supply on the island itself reduces the portion of imports in Singapore’s food supplies, decreasing greenhouse gases emissions, both in transport and storage. Nevertheless, it also faced two challenges.
First, the agri-tech sector faces higher costs compared to regional competitors due to land scarcity, high-tech infrastructures, utilities costs and labor protection standards. Subsidies could provide the tech-driven farms with the competitive advantage needed to outperform neighbouring countries.
Secondly, the hawker culture, deeply rooted in the citizens’ behaviors and in the island’s culture, also threatens the outlets of the 30-by-30 policy that could hinder the demand for sustainable food. As the 30-by-30 by policy aims to create outlets for organic food, it induces rising prices for consumers. Higher costs for the agri-tech sector, even if subsidised, inevitably translate into higher prices for purchasers, who may prefer hawker centers instead, a cheaper and more traditional alternative.
Thus, the objective of the 30-by-30 initiative is to develop the capabilities of the farming industry, in the short- to medium-term; and if unavoidable, to scale them up to face difficult circumstances that could arise in the long-term. The purpose is to prevent future generations of Singaporeans from suffering from food insecurity.
Adapting the Climate-Vulnerable Infrastructure
The impact of Fu’s policies on climate-vulnerable infrastructure are clear. The Public Utilities Board (PUB), Singapore’s national water agency pushed for both coastal and inland flood adaptation. The PUB sustained R&D programs, pilot projects, feasibility studies, such as the Coastal Inland Flood Model to guide infrastructure decisions. As of 2024, 300 improvement projects to enhance drainage capacity in flood-prone areas were underway. In 2025, an additional S$5 billion was injected in the Coastal and Flood Protection Fund on top of the S$5 billion original budget. The fund was established in 2020 to finance projects like sea walls and tidal gates, in vulnerable areas like the City East Coast.
Grace Fu further implemented urban heat adaptation plans while taking inspiration from previous efforts like Cool Singapore 1.0 and 1.5 programmes. Her biggest efforts were combining new technologies and urban heat adaptation, with the Digital Urban Climate Twin of the Cooling Singapore 2.0 program and the HDB Smart Hub program. For instance, the recently-awarded Pan Pacific Orchard, which opened in 2023, illustrates Fu’s achievements and Singapore’s efforts, in mitigating urban heat, combining greenery with urban geometry solutions.
Nevertheless, the resilient infrastructure policy faces challenges and creates controversy. The construction industry struggles with ethical concerns. Non-resident foreign low-skilled workers make up majority of the construction workforce, are exploited, forced labor and domestic abuse. In 2025, a sinkhole appeared in Tanjong Katong and endangered drivers. Migrant workers were the first to rescue harmed citizens after the incident. While Grace Fu publicly thanked them for their courage, criticism sparked over their labor conditions.
Back in 2021, Grace Fu advised Singaporean citizens to check weather reports more frequently in order for them to be informed of possible flash floods. These remarks angered Singaporeans, claiming that the government failed to acknowledge systematic failures in drainage infrastructure, while placing the burden on citizens. Critics further argued that floods disproportionately affect lower income groups with fewer relocation opportunities, as government officials failed to prioritise low-income residential zones, instead favouring commercial areas like the East Coast Park or Marina Bay.
The climate-resilient infrastructure policy is crucial for Grace Fu to demonstrate actionable progress towards her climate leadership goals. By supporting major public investments in flood resilience and mitigating urban heat, she signals both ambition and accountability in reaching Singapore’s climate goals. These efforts reinforce Fu’s position as a leader of long term national wellbeing, someone proactively redesigning the urban environment to align with the ecological limits of the country.
More importantly, Fu’s personal stake in the success of Singapore’s resilient infrastructure policies can be linked to her broader ambition of securing Singapore’s reputation as a climate resilient and innovative economy. The integration of new tech tools like the HDB Smart Hub, which centralises data on energy and water usage helps Singapore to efficiently monitor and optimise their sustainability. NBSs help manage floods and appeal to private and international investors due to their cost effectiveness, offer environmental and economic value. For instance, the Bishan Ang Mo Kio Park in Singapore was formerly a concrete canal that was naturalised into a river with vegetated riverbanks. This was able to increase surrounding property values while becoming a recreational hub. The Digital Urban Climate Twin for cooling reflect Singapore’s climate planning. These different techniques support Fu’s vision of Singapore as an urban hub in climate policy and strengthen long term trust.
As of 2025, Singapore improved climate-vulnerable infrastructure. New drainage systems and real-time weather monitoring systems have decreased the frequency and severity of the flash floods. New infrastructure enhancements delivered against intense storms, protecting lives and minimizing damages. Urban adaptation mitigated the UHI and drove down temperatures, while NBSs improved biodiversity, and enhanced public spaces. Thus, Singapore now stands as a global leader in urban adaptation, in the prevention of floods and in the mitigation of urban heat. Both low-lying archipelagos and very densely populated areas, facing similar dilemmas, can learn from Singapore’s green and climate-resilient urbanism.
IExRAIA Summer Research Program:
This article is an excerpt from a report on Grace Fu produced as part of an RAIA research program on climate leaders. For a full picture of Ruto’s climate leadership, including the sources, read the full report. This project was fully financed by IE University’s IE School of Politics, Economics and Global Affairs.
Author: Pilar Gonzalez & Gaspard Brabant
Editor: Ángel Rodríguez Moreno
Project Leads: Roxane de Bergevin & Stefani Obradovic
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