UK Foreign Secretary announces ‘landmark’ funding to Singapore despite island state’s minimal carbon footprint and vast wealth
Foreign Secretary David Lammy has committed £70 million of British taxpayers’ money to support Singapore’s clean energy transition, despite the Southeast Asian nation ranking as the world’s fourth richest country by GDP per capita.
The funding pledge, announced during Lammy’s official visit to Singapore on 12 July, forms part of a new UK-Singapore collaboration aimed at driving sustainable infrastructure development across Southeast Asia. The Foreign Secretary described the commitment as a “landmark” moment in the UK-Singapore Strategic Partnership as the nations mark 60 years of diplomatic relations.
Singapore boasts a GDP per capita of $156,755 according to the International Monetary Fund’s 2025 rankings, placing it ahead of Luxembourg, Ireland and all other nations except for purchasing power parity measurements. The city-state’s wealth vastly exceeds that of the UK, which ranks significantly lower on global prosperity indices.
Minimal Carbon Footprint
The funding decision raises questions given Singapore’s negligible contribution to global emissions. The island nation accounts for merely 0.1 to 0.15 per cent of worldwide carbon emissions, according to official Singapore government data and climate monitoring organisations.
Although Singapore contributes only 0.1% of global emissions, we are playing our part as responsible global citizens to mitigate climate change,” states Singapore’s National Climate Change Secretariat. The country’s emissions totalled approximately 53.25 million tonnes of CO2 in 2022, placing it among the world’s smallest emitters.
The UK funding will be channelled through Singapore’s Financing Asia’s Transition Partnership (FAST-P) initiative, deploying investment capital and providing blended finance to support low-carbon energy projects across Southeast Asia. British International Investment will deliver the funding package.
Deputy Prime Minister Gan Kim Yong, who also serves as Singapore’s Minister for Trade and Industry, welcomed the UK’s investment during talks with Lammy. “We are delighted to welcome the UK to join the FAST-P initiative,” Gan said, describing it as bringing together “like-minded, global public, private and philanthropic partners” to mobilise capital for Asia’s transition.
Strategic Partnership Claims
Lammy defended the expenditure as part of Britain’s broader Indo-Pacific strategy, emphasising the region’s economic importance. “ASEAN is set to be the fastest-growing economic bloc this decade. We need to keep investing in our friendships, making them resilient and focused on the future,” the Foreign Secretary said.
“This year, the UK and Singapore mark 60 years of diplomatic relations,” Lammy added, linking the funding to anniversary celebrations whilst promoting deeper UK engagement with Southeast Asian markets.
The announcement coincided with Lammy’s attendance at the ASEAN Foreign Ministers’ meeting in Malaysia, where he pledged to “reconnect Britain to the Indo-Pacific” following his appointment as Foreign Secretary one year ago.
Criticism of Spending Priorities
Critics have questioned the allocation of substantial UK funds to one of the world’s wealthiest nations whilst domestic services face budget constraints. Analysis by political blog Guido Fawkes calculated that £70 million could alternatively fund 1,329 junior doctors, 2,659 British Army privates, or 6,363 unmarked police cars within the UK.
Singapore already maintains a comprehensive environmental agenda through its Green Plan 2030, having doubled solar capacity since 2020 and frozen growth in vehicle numbers. The country has implemented Southeast Asia’s first carbon tax and aims to achieve net zero emissions by 2050.
Broader Energy Collaboration
During his Singapore visit, Lammy also delivered a speech on “Diplomacy in the Digital Age,” praising Singapore’s technological advancement and strategic clarity. He highlighted how the city-state built “serious public capability” through deep technical expertise within government rather than “throwing money at the private sector and hoping for the best.”
The funding forms part of the UK government’s Global Clean Power Alliance, announced by Lammy in September 2024, aimed at accelerating the worldwide shift to renewable energy. The initiative aligns with Labour’s domestic target to become a clean energy superpower by 2030.
Singapore currently relies on natural gas for over 94 per cent of its electricity generation, up from 18 per cent in 2000. The nation plans to import up to 4 GW of low-carbon electricity by 2035, representing approximately 30 per cent of projected supply.
The Foreign Secretary’s visit also included discussions with Singapore’s Minister for Foreign Affairs, Dr Vivian Balakrishnan, covering bilateral cooperation in trade, investment, artificial intelligence and innovation. Both ministers reaffirmed the close ties between the UK and Singapore whilst exploring opportunities for enhanced collaboration.
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