Close your eyes and listen to the bustling sounds of traffic. Our roads will get quieter in coming years, as more electric vehicles replace their petrol-guzzling counterparts.

Now look to the skies. The airplane flying overhead could be powered by fuel partly derived from used cooking oil and agricultural waste.

A revolution in clean transport is underway, as governments, companies and consumers take on climate change.

“Climate change has become a pressing concern as we see food, water and land security being threatened by the increase in frequency and severity of natural disasters,” says Ms Juliet Teo, head of transportation & logistics, Temasek.

How we commute is a key area that demands urgent action as the transport sector relies more heavily on fossil fuels than any other.

Globally, transport accounted for 37 per cent of carbon emissions by end-use sectors in 2021, said the Paris-based International Energy Agency (IEA).

Last year, the IEA warned that the worldwide transport sector is not on track to meet its net-zero target, which requires a 20 per cent reduction in emissions to less than 6 billion tonnes by 2030.

Net-zero carbon emissions refer to the state where the amount of man-made carbon emissions produced equals the amount removed from the atmosphere.

“Collective and collaborative efforts are required from governments, businesses and consumers to transit towards clean transportation and mitigate the effects of climate change,” says Ms Teo. “This transition will benefit everyone and better prepare us for the future.”

How do we get to the future of clean transport?

Drivers of change: On the road

Today, electric vehicles (EVs) generate about half the emissions of internal combustion engine (ICE) vehicles, estimates the Land Transport Authority of Singapore (LTA). 

If all local light vehicles such as passenger cars go electric, carbon emissions will be reduced by up to 2 million tonnes annually, or about 4 per cent of Singapore’s total carbon emissions.

The deployment of 60 electric public buses on local roads since 2020 has already cut carbon emissions by 7,840 tonnes annually, reports the LTA – equal to removing 1,700 ICE cars from the roads for a year.

The Government is stepping on the pedal to speed up the electrification of vehicles. From 2030, all new cars registered in Singapore must run on cleaner energy.

But the path to fully electric vehicles has its challenges.

“The lack of readily available EVs across different vehicle types and correspondingly, the costs and economics of ownership mean that there is no quick fix to transform the industry,” says Ms Teo. “There is still a long way to go to make clean solutions compatible with our everyday lives.”

To encourage faster adoption of EVs, Temasek has invested in manufacturers that look at improving the range, safety, and sustainability of EV solutions to give consumers more reliable options to ease their transition.

More charging stations for electric cars are also being deployed. Temasek’s portfolio companies SP Group and SMRT, are working with energy solutions company YTL PowerSeraya to expand the EV charging network across residences, shopping malls, commercial buildings, and industrial sites.

“Temasek is committed to investing in sustainable solutions that contribute to a more inclusive society,” says Ms Teo. 

“As transport is Singapore’s third-largest source of carbon emissions (after energy and industry), we not only see opportunities to create a more sustainable future, but also economic opportunities in the transition to cleaner transport. 

“We are actively addressing issues and pioneering new solutions in clean transport with our portfolio companies.”

By the numbers

Drivers of change: In the air

With Changi Airport being one of the busiest in the world, connecting 170 cities and 125 airlines, decarbonising the aviation sector is also key to achieving net-zero targets. 

Enter sustainable aviation fuel – a biofuel that is made from feedstock (such as used cooking oil and agricultural waste) instead of fossil fuels. 

It can reduce carbon emissions by up to 80 per cent compared with conventional jet fuel, according to estimates by international bodies such as Canada-based International Air Transport Association.

It also enables a faster transition to clean transport for the aviation sector. Both sustainable aviation fuel and conventional jet fuel can be mixed and used by existing aircraft and airports. 

This means that there is no need to change aircraft designs or airport infrastructure in the move to cleaner fuels.

Last year, GenZero – a Temasek-owned investment company that focuses on decarbonisation – worked with the Civil Aviation Authority of Singapore and Singapore Airlines (SIA) to introduce sustainable aviation fuel in a one-year pilot programme.

During this pilot, SIA and Scoot planes will use the biofuel to power their flights. This pilot is expected to reduce emissions by about 2,500 tonnes.

However, real-world deployment of sustainable aviation fuel can be a challenge, being three to five times more expensive than conventional fuel.

This could be why it accounts for less than 0.1 per cent of global jet fuel consumption in 2021, according to IEA’s estimates.

But barriers such as cost are typically temporary, notes Ms Teo, because it is still early in its development.

Likewise, Temasek is confident in its long-term investment vision (see other story), expecting that momentum in clean transport will continue to grow, fostering faster adoption.

Ms Teo adds: “Over time and through collaborative efforts, the clean transportation industry will mature, and its solutions will become more scalable, affordable and accessible.

“At Temasek, we believe that private capital has a role to play in accelerating the transition to clean transportation by encouraging innovation and supporting the growth of the industry.”