Singapore will not be claiming from the breakthrough "loss and damage" fund, Minister for Sustainability and the Environment Grace Fu told reporters at the COP28 United Nations climate summit on Dec. 11.

Will help fellow small island states

The "loss and damage" fund will cover climate disasters like hurricanes, extreme weather events, rising sea levels and rising temperatures.

The fund was created to compensate the most vulnerable countries for the impacts caused by human-induced climate change.

Set up last year at COP27, the fund recognises the responsibility of developed countries, who contributed to climate change, to developing countries, who are experiencing its consequences.

Fu confirmed at this year's talk that Singapore will not be one of the beneficiaries of the fund.

"Singapore does not have the intention to access this finance. We would not be claiming from this fund, despite the fact that we have to invest very significantly into coastal protection," Fu told CNA.

It is expected that at least S$100 billion will be spent over the next 50 to 100 years to combat rising sea levels.

Instead, Singapore will be helping other countries from the Alliance of Small Island States (Aosis) to receive money from the fund, reported The Straits Times.

Aside from Singapore, the alliance includes small states like the Pacific Island nations, which have experienced damages due to sea level rise.

“What we really want to see is help (given) to our fellow islanders, our brother and sisters in Aosis to help (them) tap these funds, as many face difficulties doing so due to the lack of technical capacity to do so," said Fu.

Singapore considered a developing country

Earlier this year, Fu had said in Parliament that Singapore has yet to decide if it will contribute or claim from the fund.

In an online statement, climate action group SG Youth for Climate Action (SYCA) expressed shock that Singapore, being a developing country, stands as a "potential claimant" to the loss and damage fund.

SYCA opined that it was "unjust" for Singapore to take the money when it rarely faced natural disasters, while other neighbouring countries had an urgent need for such funds to rebuild from disasters worsened by climate change.

In response, the Ministry of Sustainability and the Environment (MSE) said it was "premature" to draw conclusions about the donors and recipients as the details have yet to be discussed among the parties of COP.

Singapore's role is in galvanising finance

So far, at least US$790 million (S$1.06 billion) has been pledged to the loss and damage fund.

When asked if Singapore would be contributing to the fund, Fu said Singapore sees its role in "galvanising finance" for nations at risk, according to ST.

While Singapore welcomes countries to contribute to the fund, Fu believes that different nations can play various roles based on the resources available to them, reported CNA.

Fu noted that Singapore is a country that has the resources in "activating finance and technology" and bringing solutions to cities.

"The idea is that from the little resources that we have in Singapore, how (we) can lever up...like a fulcrum. From S$1 that we are putting on the table, we are able to get S$7, S$8, S$9 of funding.

We have put in some money to start that funding arrangement and we are very optimistic that the amount that we have on blended finance, the amount that we put into the seed companies, for example, will see scaling effects in the years to come.”

COP28 so far

On the summit, Fu said countries have to "work through the languages to find possible landing zones" that "can meet the needs of the most parties".

Oil producing nations, most prominently the host country UAE, have pushed back on the wording on the draft deal from the summit, with the COP28 president claiming there is “no science” that show a "phase out" of fossil fuels is needed to limit global heating to 1.5 °C.

Fu said that negotiations on the deal are a "very democratic process", and a "work in progress".

The two-week-long annual United Nations climate talks are held in Dubai this year.

There, Fu is facilitating negotiations on climate mitigation alongside Norway’s foreign minister Espen Barth Eide, looking at how to strengthen global climate action.

On Dec. 8, Singapore also signed its first implementation agreement with Papua New Guinea on the sidelines of COP28.

The agreement will allow companies in Singapore to purchase carbon credits from projects in Papua New Guinea to offset part of their carbon tax liability.

"This collaboration will spur the financing of additional mitigation projects, while also bringing about sustainable development and adaptation benefits," said Fu.

Singapore has concluded similar implementation agreements with Bhutan, Paraguay, Ghana and Vietnam, reported ST.

Deals with Costa Rica, Senegal and Rwanda have also been struck to generate and buy carbon credits, according to CNA.

Top images via Grace Fu/Facebook.