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As the two largest emitters in Temasek’s entire portfolio, Singapore Airlines and Sembcorp Industries together account for nearly two-thirds of the firm’s total emissions.<\/p>\n
Overall, Temasek’s Singapore-based portfolio companies – including Singapore Airlines and Sembcorp – account for 89 per cent of total portfolio emissions despite representing just 43 per cent of the portfolio’s value.<\/p>\n
Temasek said the expected increase in portfolio emissions next year would be driven largely by Sembcorp’s acquisition of Australian energy company Alinta Energy, a leading player with a pipeline of renewable energy projects.<\/p>\n
The acquisition gives Sembcorp access to more than 10 gigawatts of renewable energy and storage projects, but also includes a brown coal-fired power station that is expected to increase its emissions in the near term.<\/p>\n
“(SembCorp) will work constructively with the government, industry, and communities to support a balanced and inclusive transition that meets national and stakeholder needs,” the report stated.<\/p>\n
“This will be achieved through the execution of Alinta\u2019s 10.4 gigawatts pipeline of renewables and firming technological pipeline.”\u00a0\u00a0\u00a0\u00a0<\/p>\n
As for Singapore Airlines, emissions rose 3.8 per cent during the financial year, corresponding to a 3.8 per cent increase in total fuel consumption for airline flight operations.<\/p>\n
Temasek’s report stated that the increase was largely driven by resilient demand for air travel as overall passenger and cargo operations grew by 3.3 per cent.<\/p>\n
Longer routings due to airspace restrictions also contributed.<\/p>\n
While the airline continues to renew its fleet, improve operational efficiency and increase its use of sustainable aviation fuel, Temasek acknowledged that aviation remains one of the most difficult sectors to decarbonise.<\/p>\n
Referring to past research, Ms Park noted that there had been “some optimism” that sustainable aviation fuel would be able to scale to as high as 10 per cent of the global fuel consumption by 2030.<\/p>\n
Today, however, sustainable aviation fuel accounts for less than 1 per cent of global fuel consumption.\u00a0<\/strong><\/p>\n Sustainable aviation fuel is jet fuel made from organic or waste-derived material known as feedstock, instead of petroleum. It currently costs between two and five times more than conventional jet fuel.<\/p>\n “We know the margins of airlines are incredibly thin, so expecting aviation companies to actually uptake something that is two to five times more expensive at scale, when it’s not readily available, it’s not something that we can … say with a straight face,” she told CNA.<\/p>\n She said carbon markets and carbon credits can play a complementary role alongside direct emissions reductions by helping finance climate projects, while clearer government policies could help make low-carbon aviation solutions more commercially viable.<\/p>\n Ultimately, the pace of SIA’s decarbonisation would depend not just on its own climate commitments, but on broader factors across the aviation sector, such as the availability of low-carbon fuels, infrastructure, policy, market mechanisms and technology readiness, Temasek’s report stated.<\/p>\n Ms Park said: “We are very clear-eyed that the emissions are going to come up before it goes down, but we are okay, because what we don’t want to do is, just to put it bluntly, we’re not managing for emissions.<\/p>\n “The target is to make sure that … we are making the right decisions and doing the right behaviour changes both within the firm as well as within our ecosystem.”<\/p>\n Reflecting a more uncertain global outlook, Temasek on Wednesday also updated the climate scenario it uses to assess investment risks.<\/p>\n It replaced its previous baseline assumption of a 1.8\u00b0C warming pathway with a 2.4\u00b0C “fragmented world” scenario, which Temasek said reflects an outlook driven by uneven policy ambition and weaker global policy coordination than previously anticipated.<\/p>\n “Some jurisdictions are advancing their decarbonisation goals through carbon pricing, deployment of renewable energy and the setting of sector standards.<\/p>\n “Others, however, have moderated their approach in response to domestic political pressures, energy security imperatives and affordability constraints,” the report said.<\/p>\n<\/div>\n INCREASE IN EMISSIONS EXPECTED IN NEAR TERM As the two largest emitters in Temasek’s entire portfolio, Singapore Airlines and Sembcorp Industries together account for nearly…<\/p>\n","protected":false},"author":1,"featured_media":67079,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/dam.mediacorp.sg\/image\/upload\/s--FIem4YDa--\/c_fill,g_auto,h_676,w_1200\/fl_relative,g_south_east,l_mediacorp:cna:watermark:2024-04:reuters_1,w_0.1\/f_auto,q_auto\/v1\/one-cms\/core\/2025-08-13t224528z_1_lynxmpel7c0z9_rtroptp_3_temasek-bonds.jpg?itok=IV8nz93l","fifu_image_alt":"","footnotes":""},"categories":[2],"tags":[243,7030,26172,300,13046,22313,1569,1814,26171],"class_list":["post-67078","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buzz-news-sg-global","tag-aviation","tag-carbon","tag-emissions","tag-energy","tag-hurdles","tag-nearterm","tag-rise","tag-set","tag-temaseks","wpcat-2-id"],"_links":{"self":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/67078","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=67078"}],"version-history":[{"count":0,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/67078\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/media\/67079"}],"wp:attachment":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=67078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=67078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=67078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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