SINGAPORE — Temasek warned on May 18 that it is unlikely to meet its 2030 emissions target amid difficult global conditions and technological limits in decarbonising aviation and power, though the investment firm reaffirmed its commitment to reach net zero by 2050.
Chief executive Dilhan Pillay told delegates at the opening dinner of the Ecosperity conference that while the firm’s goal to halve portfolio greenhouse gas emissions to 11 million tonnes by 2030 remains unchanged as a directional benchmark, the practical realities have made the target harder to achieve. Temasek’s portfolio emissions for the 2025 financial year stood at about 21 million tonnes, down only slightly from earlier levels, while the group has reduced carbon intensity by 52 percent since 2010.
More than 80 percent of Temasek’s portfolio emissions are concentrated in five companies — Singapore Airlines, Sembcorp Industries, Olam Group, PSA International and ST Telemedia with SIA alone accounting for 43 percent of total emissions. Pillay highlighted that fossil fuels are deeply entrenched in hard‑to‑abate industries such as aviation, steel, cement, shipping and power generation, and that rising global energy demand and recent geopolitical shocks have complicated transition plans.
Temasek has already taken steps to curb emissions, including beginning to export cleaner freight operations and applying an internal carbon price of US$65 per tonne in investment and operating decisions, to rise to US$100 by 2030. The firm’s operational emissions were about 19,700 tonnes in FY2025 and its sustainability‑aligned portfolio investments totalled US$46 billion.
Pillay flagged aviation and power generation as areas where emissions could increase: aviation remains especially difficult to decarbonise without significant uptake of sustainable aviation fuel (SAF), which currently makes up under 1 percent of global jet fuel and costs two to five times more than conventional jet fuel. Singapore aims for SAF to account for 1 percent of fuel at Changi and Seletar airports in 2026 and 3–5 percent by 2030.
He also cautioned that rapid growth in artificial intelligence has added energy demand and attracted capital that might otherwise support climate transition projects, noting that AI’s near‑term power needs cannot rely solely on renewables. “The global energy transition has entered a far more complex and uncertain phase, with geopolitics reshaping markets,” Pillay said, citing recent Gulf events as evidence of persistent vulnerabilities in fossil fuel systems.
Speakers at Ecosperity urged policy and technological change to speed decarbonisation. Dave Sivaprasad of Boston Consulting Group said stronger government incentives are needed to make low‑carbon investments financially viable, while Leanne Todd of S&P Global called for clearer carbon frameworks to guide capital deployment. NUS energy researcher Ho Hiang Kwee warned that Temasek’s cautious outlook may prompt other emissions‑intensive corporates to reassess their own targets.
Despite acknowledging the 2030 goal’s challenges, Temasek said it will continue engaging portfolio companies in high‑emission sectors and backing commercially viable decarbonisation pathways, underlining that sustained commitment is essential even as the route to net zero becomes more difficult.