Step aside Garden City S'pore, Budget 2017 will bring a big smile to Mother Nature

Because we will be cleaner and greener.

Martino Tan | February 23, 2017, 10:19 AM

For many years, our idea of an environmentally-friendly Singapore is to view ourselves as a Garden City.

And our most common activity to ensure that Singapore remains environmentally-friendly?

Tree-planting.

Source: Remembering LKY Facebook page Source: Remembering LKY Facebook page

In the last few years, we have moved from being a "Garden City" to being a "City in a Garden", with our new parks and our park connectors network.

Source: Ministry of National Development website. Source: Ministry of National Development website.

And here is one indication that we have succeeded.

Business Insider reported that Treepedia, a site with interactive maps that show the density of greenery in major cities around the world, has ranked Singapore the top city with the most trees.

Source: Treepedia website. Source: Treepedia website.

Finance Minister goes green

Enter Finance Minister Heng Swee Keat, who must have won many fans in the environmental community with his 2017 Budget statement in Parliament on Feb. 20.

Heng wanted Singapore and Singaporeans to do more for the environment.

First, on the carbon tax.

Heng said that Singapore has joined more than 130 countries in having ratified the Paris Agreement to address climate change and reduce emissions because it "is in our own interest to support the international coordination required to deal with an issue that affects all countries".

Without caveats, Heng laid it out as it is, in just two paragraphs:

"[T]he most economically efficient and fair way to reduce greenhouse gas emissions is to set a carbon tax, so that emitters will take the necessary actions. Singapore has studied this option for several years. We intend to implement a carbon tax on the emission of greenhouse gases. We will consult widely with stakeholders, and aim to implement the carbon tax from 2019. The tax will generally be applied upstream, for example, on power stations and other large direct emitters, rather than electricity users.

We are looking at a tax rate of between $10 and $20 per tonne of greenhouse gas emissions. This is in the range of what other jurisdictions have implemented. It will create a price signal to incentivise industries to reduce their emissions, complementing the regulatory measures which we are also introducing. It will help us to achieve our commitments to reduce emissions under the Paris Agreement, do so efficiently and at as low a cost to the economy as possible. This may also spur the creation of new opportunities in green growth industries such as clean energy. Revenue from the carbon tax will help to fund measures by industries to reduce emissions. The impact of the carbon tax on most businesses and households should be modest."

This is typical straightforward, decisive Singapore.

Contrast this to Australia's torturous history with carbon tax for instance.

Carbon tax was introduced by former Australian Prime Minister Julia Gillard in Feb. 2011 and began on July 2012.

Former Australian PM Tony Abbott, after winning the federal election, then introduced legislation in Nov. 2013 to repeal carbon tax, which was initially blocked in Senate by the Opposition.

The carbon tax repeal finally succeeded in July 2014, merely two years after it was introduced.

Second, on vehicles emissions.

Apart from carbon emissions, Heng noted that diesel emits highly pollutive particulate matter and nitrogen oxides which are associated with an increased risk of lung cancer and respiratory infection.

Heng decided to restructure diesel taxes because the government currently levies "a lump sum Special Tax on diesel cars and taxis, regardless of the amount of diesel used".

This is a no-brainer - taxing diesel according to usage incentivises users to reduce diesel consumption.

And Heng, being the nice guy he is, will provide 100% road tax rebate for one year, and partial road tax rebate for another two years, for commercial diesel vehicles, to "help businesses adjust".

Heng has also adjusted two vehicle incentive schemes to encourage the use of cleaner vehicles.

Finally, on the water price hikes.

This policy change had generated the most intense reactions on social media.

Why so?

This is because water prices will increase by a whopping 30 per cent in two phases over the next two years, starting from Jul. 1 this year. This is to reflect the higher costs of desalination and NEWater production.

It is the first time in almost 20 years that the Government is revising water prices.

According to Heng, the increase in monthly water bills will be less than $18 for 75 per cent of the households.

Guess we should strive to be part of the 75 per cent then.

Carbon tax, reduction in vehicle emissions and saving water.

All good reasons to protect our environment, and like what Heng said, "it is the right thing to do".

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Top image screen grab taken from Gov.sg's Youtube video.

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