Singapore Green Bonds Proceeds’ Allocated to JRL and CIL

Singapore’s Ministry of Finance (MOF) on Monday released the third edition of Singapore Green Bond Report for Financial Year 2024, detailing the allocation of $2.17 billion in proceeds from Singapore’s sovereign green bonds in 2024 to finance capital expenditure of the Jurong Region Line (JRL) and Cross Island Line (CRL), and the expected environmental impact of the financed projects.

A limited assurance engagement has been conducted by PricewaterhouseCoopers LLP in respect of the allocation of proceeds for the financial year ending on 31 March 2025.

Indranee Rajah, Minister in the Prime Minister’s Office, Second Minister for Finance and National Development and Chair of the Green Bond Steering Committee, said that Singapore will press on with comprehensive mitigation and adaptation measures to achieve the government’s national climate targets and support sustainable development in the region.

“The Singapore Green Bond Report provides an update on the progress we have made and reflects our commitment to a robust green bond programme and high-quality issuances to finance our green infrastructure,” she added.

Issuance and Allocation Reporting

The City State issued its first new 30-year Sovereign Green Singapore Government Securities (SGS) (Infrastructure) bond (Jun-54) via syndication in June 2024, with an issuance size of $1.94 billion.

The 50-year Green SGS (Infrastructure) bond (Aug-72) was re-opened via auction in October 2024 with an issuance size of $1.16 billion. This was the third tranche of the 50-year sovereign green bond first issued in 2022, and the first time a Green SGS (Infrastructure) bond issued via auction. Both issuances saw healthy market demand, with overall subscription rates at 2.4 times and 1.6 times respectively.

In total, $2.17 billion of green bond proceeds were allocated in 2024. The remaining unallocated proceeds, totalling $2.79 billion, are expected to be fully allocated to the JRL and CRL by the end of FY2026.

Impact of JRL and CRL

The development of JRL and CRL supports the “Sustainable Living” pillar of the Singapore Green Plan 2030, which will enable the nation to achieve its ambition of significantly reducing land transport emissions from the peak in 2016 by 2040, and net zero emissions by 2050.

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 at least 22,000 Internal Combustion Engine cars off Singapore’s roads, and represents an estimated emissions reduction of 81% from the alternative transport modes along the same travel distance in a scenario where there is no JRL and CRL.

The allocated green bond proceeds as at end of 2024 ($4.34 billion as at 31 March 2025) are expected to have a financed impact of between 9,600 and 14,000 tonnes of CO2-equivalent emissions avoided annually.

The expansion of Singapore’s rail network is expected to bring about economic and social benefits, including a more resilient public transport system, enhanced connectivity and travel time savings for commuters, as well as job creation. The upcoming expansion, including the JRL and CRL, is expected to create about 1,500 jobs by 2030, the MOF said.