Gov’t to inject $2.4b raised from first sovereign green bond to rail network expansion

The government has already allocated 30% of the funds raised.

The government has allocated $700m or 30% of the $2.4b raised from Singapore’s first sovereign green bond to finance capital expenditure of the Jurong Region Line (JRL) and Cross Island Line (CRL).

According to the Singapore Green Bond Report, the government plans to allocate the remaining proceeds to the two rail projects by the end of FY2024.

“The allocation of green bond proceeds to the JRL and CRL during FY2022 is expected to have a financed impact of between 1,200 and 1,800 tonnes of CO2-equivalent emissions avoided annually,” the  Ministry of Finance  (MoF) said.

When fully operational, the JRL and CRL are estimated to result in total carbon savings of between 100,000 and 120,000 tonnes of CO2 equivalent annually. 

“This is equivalent to taking 22,000 cars off Singapore’s road, and represents an estimated emissions reduction of 81% compared to the baseline scenario,” the MOF added.