Who pays for a climate-ready S'pore?

Navigating the multibillion bill for adaptation efforts

- Chin Hui Shan

From Scotland’s push for climate-resilient barley for whisky, to a tunnel in Malaysia that also diverts flood waters away from the city centre, many countries are revving up their efforts to adapt to climate change.

Singapore, located in the midst of the sizzling tropics, is no exception.

In March, the Ministry of Sustainability and the Environment (MSE) announced a slew of initiatives in this area, as it declared 2026 the Year of Climate Adaptation. Plans include rolling out coastal protection efforts, investing $40 million in heat research and topping up $70 million to a fund to support local farms.

Climate adaptation is now a top national priority, to strengthen the resilience of businesses and communities here against the onslaught of climate change.

As Minister for Sustainability and the Environment Grace Fu told The Straits Times in an interview on March 18, nobody can argue with why countries should take steps to protect themselves from climate impact.

But the question is: who should pay for these protective shields?

THE BURDEN OF ADAPTATION

Climate adaptation will not come cheap.

To protect itself from rising sea levels alone, Singapore estimates that it must spend $100 billion over the long term.

The Government plans to fund this through various ways, including tapping the existing $10 billion Coastal and Flood Protection Fund, borrowing via the Significant Government Infrastructure Loan Act, and the use of past reserves where appropriate, said a government spokesman.

The Act allows the Government to borrow up to $90 billion to pay for infrastructure that will last for at least 50 years.

“One challenge of climate adaptation finance is striking a balance between having protection early and overcommitting resources,” the spokesman added.