Prime Minister Lee Hsien Loong mapped out Singapore's plan to take advantage of the changing energy landscape, in which oil prices are low and the cost of producing clean energy is falling.
Mr Lee charted three paths that will help the country to stay ahead in the energy and chemicals sector, which makes up one-third of manufacturing output. It also provides good jobs for more than 25,000 people..
Mr Lee held up these challenges facing the sector at a dinner organised by energy giant Shell to celebrate its 125th anniversary in Singapore. He noted that Shell is transforming itself into an energy solutions company.
On reducing emissions, Mr Lee said Singapore will work towards its pledged goals "in an economically efficient way that will enable us to remain competitive", with incentives that will fuel these efforts, Mr Lee said. These include pricing energy right: fuel for vehicles as well as electricity for homes and industries.
"We cannot and will not subsidise energy prices," he said. But lower-income households do receive government help for their electricity bills
Singapore is also working with the biggest carbon emitters, like the petroleum refining, chemicals and semiconductor sectors, which contribute about 78 per cent of industry's emissions.
He acknowledged that "we are not best-in-class by some distance" because refineries are older, noting that Shell's refinery was built in 1961.
While it is difficult to compete with the efficiency of newer plants elsewhere, he noted that Shell had installed a co-generation unit at Bukom last year to improve efficiency. And the Government is committed to work with Shell to meet its carbon targets in a sustainable way.
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