Louis delivered his budget cut on Tackling Transboundary Haze - Companies Tackling, Transboundary Haze - Mitigation at Committee of Supply 2016.

Louis: Transboundary haze has been a problem in Southeast Asia for the past few decades. Year after year, we face the same problem despite all the efforts in the previous year to ensure that we wipe out this problem. This is also despite the signing of the ASEAN Agreement on Transboundary Haze Pollution.

With the haze season drawing near and in fact we have already caught sight of the haze in the past few weeks, what are the regional and bilateral efforts that Singapore will participate in to mitigate the causes of the transboundary haze in our region?

As Er Dr Lee Bee Wah has mentioned, there is increasing recognition that the root cause of forest fires in Indonesia is commercially driven. We are also aware that there may be some publicly traded companies in Singapore who might have a stake in or have played a role in the forest fires in this region. These fires and the resulting haze have not only destroyed the environment and wildlife, but have also resulted in health issues amongst Singaporeans and economic losses in Singapore.

What measures have the Ministry taken to enhance the accountability of such companies and what measures will the Ministry further take to ensure that such companies are brought to task?

Mr Masagos Zulkifli B M M (MEWR): While we are on the topic of air quality and PSI, I thought it would be a good moment to talk about the haze. Unfortunately, we are increasingly affected by transboundary haze pollution, as Mr Louis Ng and several Members have highlighted. Last year, we experienced one of the longest haze episodes. There is no easy solution to this complex issue. We need concerted action by all stakeholders to overcome this problem. On the part of Government, we actively work with our neighbours bilaterally and regionally. Let me give you an update.

First, we will actively promote regional cooperation because haze is a multilateral issue. As the haze is largely due to peatland fires, Singapore has facilitated the development of the ASEAN Guidelines on Peatland Fire Management with contributions from all member states. We also host the ASEAN Specialised Meteorological Centre, which helps to monitor the fire and hotspot situation in the region.

Singapore has led the development of the ASEAN Sub-Regional Haze Monitoring System which aims to increase transparency and accountability of errant companies responsible for the fires. This system will need to be supported by effective information exchange among governments. We will continue to participate actively in ASEAN initiatives to address transboundary haze and urge all member countries to implement their national action plans and work towards realising the Haze Monitoring System.

Second, we will continue to support Indonesia's efforts to tackle haze. Since 2005, we have been offering them assistance to fight fires and will continue to do so. We had also worked with the Muaro-Jambi Regency in Jambi Province on capacity building projects to deal with land and forest fires from 2007 to 2011. We have since offered to renew this collaboration under a proposed Memorandum of Understanding and are awaiting Indonesia's response.

Third, we are addressing the commercial roots of transboundary haze by pursuing errant companies and encouraging the agro-forestry industry to adopt more sustainable practices. Er Dr Lee Bee Wah, Assoc Prof Faishal and Asst Prof Mahdev Mohan have asked about the steps being taken under the Transboundary Haze Pollution Act (THPA) and other measures to deter errant companies.

Arising from the 2015 haze episodes, NEA sent Preventive Measures Notices under Section 9 of the THPA to six companies based in Indonesia, requesting that they take immediate measures to mitigate fires and develop plans to prevent their recurrence. Two of them have responded so far. NEA is corresponding with them and verifying the information provided. In addition, NEA served a Notice under Section 10 of the THPA on Asia Pulp & Paper Company Ltd (APPCL)'s office in Singapore to seek information on its subsidiaries in Singapore and Indonesia, as well as measures taken by its Indonesian suppliers to put out fires in their concessions. NEA is currently reviewing some information received from APPCL.

Of the four companies based in Indonesia that did not respond, NEA has recently served Notices under Sections 10 and 11 of the THPA on a foreign Director when he was in Singapore. These Notices require him to provide information and attend an interview in relation to the on-going investigations. In accordance with the law, we will take what steps we can to enforce the THPA, bearing in mind that outside of Singapore, there are limited possibilities. We will, of course, hold any Singapore-linked persons or entities to account. At the same time, even if the errant company's officers are foreigners, they will have to comply with the laws of the country, including the Notices under the THPA, should they come to Singapore.

Asst Prof Mahdev Mohan has also suggested having settlement agreements and engaging the Law Society for future haze episodes. We could consider these suggestions when we next review the THPA with the experience gained in operationalising it, to see how it can be strengthened to hold errant companies to account – so that people take what we are doing, seriously.

Fourth, as consumers, each one of us can influence the agro-forestry industry through our purchasing decisions.

Last October, the Singapore Environment Council (SEC) suspended the green label of APP's exclusive distributor in Singapore and partnered with the Consumers Association of Singapore to advocate for sustainable business practices.

Consequently, the larger supermarket chains such as NTUC FairPrice, Sheng Siong and Prime Supermarket responded by removing all APP products from their shelves, while the Dairy Farm Group stopped the purchase of all APP products. Our consumers, and consumers all around the world, are rightfully indignant when companies here and abroad blatantly violate their health and well-being with unsustainable practices. They are sending the right signals. These actions demonstrate the significant power of a collective consumer voice.

The Government will do its part as a consumer as well. I am pleased to announce that from third quarter 2016, the Government will take the lead and procure printing paper products that carry the Singapore Green Label, an indication that the supplier practises sustainable forestry management.

Similarly, the Government will be taking the lead in fighting climate change and procure only electrical products that have been certified with high energy efficiency. We will start with four electrical items − air-conditioners, lamps, televisions and refrigerators, and will gradually extend this to more items.

A silver lining is that civil society and the private sector have stepped up to raise awareness of the sustainability of agroforestry products. We are heartened that the WWF-Singapore, PM.Haze and the Singapore Institute of International Affairs jointly organised the "We Breathe What We Buy" campaign to highlight the link between purchasing products made from palm oil from unsustainable sources and the haze episodes. SEC has also announced the expansion of the coverage of the Singapore Green Labelling Scheme to certify products made using sustainable palm oil.

In the financial industry, we saw the Association of Banks in Singapore launching its Responsible Lending Guidelines and the Singapore Exchange moving towards its "Comply or Explain" sustainability reporting regime. These are good steps, some maybe baby steps. I hope to see more and stronger ground-up initiatives that demonstrate the business case to embrace sustainability.

It is the sum of all these: regional and international agreements and cooperation, bilateral support, bringing errant companies to task, consumer action, including government procurement, civil society advocacy, green financing. These will help us edge closer to years in the future without haze. We must press on with our efforts, not just during the haze season, but consistently throughout the year because this is a serious environmental disaster with wide-ranging impact for us now, and for the future.

Irresponsible burning over the years has affected the health of millions of people, impacted regional economies, and caused irreversible loss of biodiversity. Singaporeans are therefore rightfully outraged because of its health impact; but more than that, the world is rightfully outraged because it also contributes to global warming. As mentioned by Er Dr Lee Bee Wah, based on the Global Fire Emissions Database, the fires in Indonesia produced more emissions per day than the entire US economy. The entire US economy − that is not a small number. This massive amount of emissions from a single source is a huge setback in our global efforts to combat climate change.

Source: Hansard (Parliament of Singapore)

Louis asked the Minister for the Environment and Water Resources in addition to a letter written by the CEO of NEA to his counterpart in Indonesia, what other steps will the Ministry take to address the haze issue in anticipation of worsening haze conditions.

Mr Masagos Zulkifli B M M (MEWR): Mdm Speaker, on 26 August 2016, the CEO of the National Environment Agency, NEA, registered Singapore's concerns with his Indonesian counterpart over the deteriorating air quality and urged Indonesia to take necessary actions to prevent and mitigate the fires during the dry season. The NEA also asked for an update on the situation in Sumatra and Kalimantan.

The NEA has been issuing daily haze advisories to the public. The advisories contain useful information, such as the air quality forecast for the following day with a corresponding health advisory and information pertaining to the hotspots situation. This will allow the public to plan ahead for their activities. The NEA, together with other agencies under the Haze Task Force, will closely monitor the situation and roll out further measures as necessary.

Singapore is committed to assisting Indonesia in its efforts to deal with land and forest fires. In June this year, we offered our haze assistance package to Indonesia to support its fire mitigation efforts. We have also been working with the Indonesian Government at regional fora, such as ASEAN, to explore initiatives that can help address the haze issue.

Over the past year, Singapore has been active in facilitating the exchange of best practices on peat land fire management as well as the development of the Roadmap to a Haze-free ASEAN 2020 which was just adopted last month. We were also active in ensuring the full and effective implementation of the ASEAN Agreement on Transboundary Haze Pollution, as well as pushing for the expeditious operationalisation of the ASEAN Haze Monitoring System.

Ultimately, we recognise that transboundary haze is a man-made and commercially-driven issue. The Singapore Government has announced that it will only procure printing paper products that carry the Singapore Green Label, which indicates that the supplier practises sustainable forestry management and does not clear land using fire. Consumers in Singapore should send similar signals to influence companies to adopt environmentally sustainable practices that do not contribute to smoke haze.

I am heartened that some NGOs have stepped up their support in this regard. For example, the World Wildlife Fund Singapore (WWF-SG) has recently established the Singapore Alliance for Sustainable Palm Oil to encourage businesses here to use certified palm oil which does not contribute to the haze in its production. I encourage all stakeholders to persevere in our efforts to combat the haze. 

Louis: Thank you, Mdm Speaker. While the Government is leading by example in the procurement of paper that the Minister has just mentioned, will the Ministry also consider the green procurement of palm oil products as well? Secondly, when we talk about the procurement of paper, are the papers certified under the Singapore Green Label Scheme? Will the Ministry also consider using other internationally recognised standards such as the Forest Stewardship Council (FSC)'s certification?

Mr Masagos Zulkifli B M M: Indeed, we are concerned that standards should exist so that companies, big or small, have guidance what to buy, where to buy from and therefore, the World Wildlife Fund Singapore's Singapore Alliance for Sustainable Palm Oil standard is one of the standards that we are hoping will be one that will resonate with the industry. There are others, like RSPO, and they have different standards, different means of implementation but we welcome them all.

The Singapore Green Label for paper is only one of the product categories that the Singapore Environment Council (SEC) is producing. It is a primary means to ensure that it is more comprehensive and will bring back those egregious companies, a chance for them to make good to practise sustainable production.

FSC is also a label that SEC recognises but it is not as comprehensive as the Singapore Green Label. And while the Singapore Green Label will take some time to mature, FSC is a good enough standard for us to rely on.

Source: Hansard (Parliament of Singapore)

Louis delivered the following budget cuts at Committee of Supply 2017.

Strengthening Responsible Financing

Louis: Recently, some of our local banks were named for allegedly financing irresponsible palm oil companies linked to deforestation and the haze. In 2015, the Association of Banks in Singapore (ABS) released a set of industry guidelines to enhance responsible financing, but it seems that these measures have not borne fruit. International banks, such as HSBC has started to strengthen their lending criteria, but local banks have not published environment, social and governance policies. Will MAS encourage financiers to adhere to the ABS' guidelines, and what further steps will it take to prevent local financiers' involvement in environmental disruption, which could lead to haze.

Mr Ong Ye Kung (The Minister for Education (Higher Education and Skills) and Second Minister for Defence ): Mr Louis Ng asked if MAS will encourage local financiers to adhere to the Association of Banks in Singapore (ABS) industry guidelines on responsible financing.

In short, we do. MAS has been working closely with the financial industry on this. Since the launch of ABS' Responsible Financing Guidelines in 2015, ABS member banks are expected to factor into their lending and investment policies sustainability issues such as greenhouse gas emissions, deforestation, resource efficiency, labour standards and corporate integrity.

The local banks have established internal task forces on environment, social and governance issues, to help integrate the ABS Guidelines into their lending and business practices. Banks have implemented environmental risk weightings as part of their loans assessment criteria. Loan decisions relating to companies which are assessed to have high environmental risks will be escalated to the banks' senior management.

ABS has also recently introduced specific guidelines for banks on dealing with haze-related risks, such as no open burning on plantations, and build capacity on fire prevention with local communities.

Source: Hansard (Parliament of Singapore)

Procurement of Sustainable Palm Oil

Louis: My next cut. The haze pollution in 2016 was much less severe than in 2015. Did the Ministry's effort in naming the companies who may have contributed to the haze help? I am sure the Government's decision to buy only green label paper helps significantly as well.

As such, will the Government now look into procuring only sustainable palm oil, considering that it has announced support for the roundtable on Sustainable Palm Oil recently? Lastly, what are the Ministry's expectations for the haze situation in 2017?

Promoting a Haze-free ASEAN

Louis: A haze-free ASEAN is only possible if all ASEAN states work together to resolve this longstanding problem. What is the progress of the Ministry's effort on the regional front to achieve a haze-free ASEAN? Specifically, how will Singapore be working with Indonesia and assist in the effort to prevent and clamp down on forest fires? What role can businesses and the general public play in contributing to this vision?

Mr Masagos Zulkifli B M M (MEWR): As Mr Louis Ng has pointed out, regional cooperation remains essential to tackle the haze problem. Last year, ASEAN member states came together to develop the Roadmap on ASEAN Cooperation towards Transboundary Haze Pollution Control. This is a laudable development and underscores the region's commitment to realise the vision of a Haze-free ASEAN by 2020. We all look forward to the completion of the ASEAN study on the social, health and economic impacts of the 2015 haze crisis, which will consolidate the case for the ASEAN member states to strengthen efforts to prevent the recurrence of haze.

Louis: Second, can the Minister clarify if the Government will look into procuring only sustainable palm oil?

Mr Masagos Zulkifli B M M: For the second question, there is already labelling by the Roundtable on Sustainable Palm Oil (RSPO) which encourages big sellers and buyers to comply with sustainable palm oil production. Most buyers and sellers are in this consortium to make sure they comply. I think this is currently the best one we have. To make sure that everybody or compel them to buy only RSPO label products would not be productive nor possible.

Source: Hansard (Parliament of Singapore)

Response Plan for Oil Spills

Louis: The recent oil spills severely affected native diversity and fish farms in the vicinity. MPA launched investigations into the cause of collision and various agencies conducted beach clean-ups. However, the SOP for clean-up varies from agency to agency. Would the Ministry consider organising a roundtable to engage stakeholders and agencies such as MPA, NEA, NParks and AVA as well as other stakeholders and experts to come up with a comprehensive oil spill response plan which can apply to future mishaps? Would the Ministry hold responsible parties accountable for the impact and ensure that compensation is made to those affected, for example, the fish farms? 

Mrs Josephine Teo (The Senior Minister of State for Transport): Mr Louis Ng asked about our response to oil spills. We are highly vigilant towards environmental incidents and have a well-established, multi-agency response plan which is regularly exercised.

During the oil spill off Pasir Gudang in January, agencies responded swiftly and effectively. Within hours, MPA, which is the coordinator for the interagency response, had already modelled the spilled oil's trajectory, and worked with the agencies to take measures such as laying out oil-absorbent booms to prevent its spread. As a result, traffic in the East Johor Straits and Singapore's port operations were not affected. Affected beaches were quickly cleaned up and key biodiversity areas at Pulau Ubin, Coney Island and Pasir Ris were protected. They were not harmed. We are now working with the insurers of the vessels responsible for the incident to compensate affected the parties, including the fish farms. The Bunker Convention puts the responsibility on the ship owners.

Louis: Madam, just a clarification for the Senior Minister of State. I appreciate that the agencies are working together but can we have a roundtable so that the agencies can work together with the other stakeholders and experts − the NGOs and the scientific community − for oil spills.

Mrs Josephine Teo: Mr Ng, roundtable or not, we will meet with them. I shared earlier MPA's inter-agency response. Some of the inputs that NGOs have given us include the use of non-toxic oil dispersants, and also in terms of where we will prioritise the containment activities. What we have done is to say we will protect the areas that have got greater bio-diversity value. So, I think the conversation continues.

Source: Hansard (Parliament of Singapore)