A country’s ability to deal with climate issues is key for investors, says minister

Grace Fu urges nations to reach a deal on climate adaptation at COP30 in Brazil

- Ang Qing

A country’s readiness to adapt to climate calamities has become an increasingly important consideration for businesses looking to invest in Singapore, said Minister for Sustainability and the Environment Grace Fu.

Speaking to the media on Nov 3 ahead of the 30th UN Climate Change Conference of the Parties (COP30) - which will take place over two weeks in Brazil from Nov 10 — Ms Fu said that businesses are beginning to take stock of “the adaptive ability of a country” to plan for climate risks before deciding to invest in an area.

“Climate risk is very much ingrained in investors’ mindsets, and we have seen many banks, many investors incorporating climate risk into their calculations, into their planning,” she said.

Adaptation refers to actions that can deal with the damage caused by climate change.

The other prong of climate action is mitigation, which tackles human-driven climate change by absorbing or limiting the production of planet-warming greenhouse gases.

Adaptation is expected to be a key focus of the climate talks in the Amazonian coastal city of Belem.

Negotiators are expected to agree on a set of indicators that countries can use to develop national adaptation plans and track progress on their implementation.

Ms Fu will represent Singapore at the annual summit, where governments are set to negotiate their joint efforts to curb climate change and deal with its impacts.

She is set to fly to Brazil for the second week of talks.

The Republic also takes the same approach in looking at the preparedness of a country or community against climate change, before deciding where to “activate finance for climate action”, said Ms Fu, who is also the Minister-in-charge of Trade Relations.

Under the Paris Agreement, developed countries are obligated to provide climate finance for developing countries.