Case Study 1: Olam Combines Digital Transformation and Climate Action in Singapore
Introduction
Olam International is a leading agribusiness that aligns with Singapore’s ambitious climate action and sustainability goals. Olam was founded in 1989 and has expanded globally, emphasizing sustainable agriculture and food production. Singapore’s efforts to combat climate change include significant efforts to reduce greenhouse gas emissions and promote sustainable development across various sectors, including agriculture. The government encourages digital innovation to achieve these goals, aiming for greater efficiency and sustainability in agriculture, a sector ripe for technological advancement.
Problem Statement
The main challenge identified by Olam International is to integrate digital solutions within the agriculture sector to enhance sustainability. It must be optimized for sustainability while maintaining economic viability and supporting local communities
Solution
Olam has used agribusiness practices for maintaining sustainability. The most important solutions could be highlighted as follows:
Olam uses GPS technology, drones, and IoT devices as precision Agriculture to gather data on crop health, soil conditions, and weather patterns. Smart Irrigation Systems are used to optimize water usage and reduce the environmental impact.
Olam has enhanced supply chain transparency by enabling a clearer view of the product journey from farm to consumer.
Olam is actively trying to minimize its carbon footprint through different suggestions such as; renewable energy sources, improving energy efficiency in processing facilities, and adopting low-emission transportation methods.
Advanced technologies help farmers to improve their economic yields and employment.
International Commitments
Global initiative is aligned to reduce carbon emissions and enhance sustainability regarding climate actions. Under the digital innovations, they are contributing to the international digital transformation trends that are used by other countries in the agriculture sector.
National Commitments
Olam practices are aligned with Singapore’s commitments to improve its sustainability goals by reducing environmental impacts and promoting sustainable development. They mainly focused on local community engagement by enhancing livelihoods through technology improvements and sustainable practices.
Outcomes
Olam has identified positive outcomes regarding digital transformation and sustainability practices including enhancements of agricultural yields, improvements in sustainability, providing better access to the market, and increment of consumer trust. These are aligning with climate action goals in Singapore and instruct a commitment to sustainable development.
Challenges
Digital technology can affect opportunities as well as challenges in agriculture. It takes a high technology cost to plan and monitor the process. Also, it required the training requirements procedures to practice farmers for new technologies. It needs to keep the consistency and the balance between traditional and modern practices during digitalization. The biggest challenge can be reliance on the data accuracy of the digital devices and processes and the technology reliability for the traditional farmers.
Conclusion
Olam International’s strategic blend of digital technologies with a focus on sustainability not only aligns with but also supports Singapore’s climate action and sustainability goals. This case study illustrates how digital transformation in agriculture can lead to improved operational efficiency, transparency, and sustainability, contributing significantly to the global fight against climate change and enhancing the livelihoods of local communities.
Case Study 2: Phasing out Fossil Fuel Subsidies and Advocating Renewable Energy in Asia
Introduction
The case study is about the challenges of phasing out fossil fuel subsidies and making the Asia-Pacific region more sustainable through embracing cleaner and renewable energy sources. According to the Economics of Climate Change in the Asia-Pacific Region(2016), the region is responsible for 53% of global emissions and it is also facing a significant threat in the form of a fast-changing climate, risks associated with it, and economic consequences. Economic projections indicate that if no action on climate change is taken, a regional GDP might as well fall up to 3.3% by 2050 but further deteriorate much into the future, even soaring higher (The Economics of Climate Change in the Asia-Pacific Region, 2016). This study assesses the current landscape and recommends strategies to be followed to have a sustainable future characterized by low carbon emissions in Asia.
Problem Statement
To cut down a company’s production expenses or decrease consumers’ costs of oil, gas, and coal, fossil fuel subsidies are financial inducements provided by governments. In the beginning, these policies were established to enhance economic growth and offer cheap energy products for end users. However, they now represent a significant obstacle to clean energy transition. These subsidies which lower the price of fossil fuels discourage investment in renewable sources. The persistent nature of these subsidies is a huddle to the adoption of environment-friendly sources of energy in contrast with global attempts at addressing climate change. It is important for Asia to get rid of such subsidies and switch to a cleaner and more sustainable energy future.
International Commitments
Several Asian economies, such as China, India, and Japan among the G20 countries during the 26th United Nations Climate Change Conference have undertaken to terminate counter-productive support for fossil fuel resources in line with global initiatives aimed at boosting renewable energies. APEC has also started the process by agreeing to phase out all fossil fuel subsidies on a voluntary peer review basis which indicates willingness by member countries. Moreover, these moves are in line with the Sustainable Development Goals (SDGs), especially Goal 12 ensuring sustainable consumption and production which includes cutting fossil fuel subsidies. These international commitments demonstrate a wider consensus that Asia-Pacific is transitioning towards an energy future that is more sustainable and environmentally friendly.
National Commitments
Various countries are trying out ways to minimize GHG emissions and support renewable energy projects. For instance, Australia’s Emissions Reduction Fund, India’s National Action Plan on Climate Change launched in 2008, Indonesia’s partnership for a Just Energy Transition, Japan’s promoting Strategic Energy Plan, and the Republic of Korea’s National Emissions Trading Scheme as their forms of such programs to strive to become a low-carbon nation.
Challenges
Despite various undertakings and pledges that have been made, there are still some obstacles. Lack of openness, government mistrust, fear of inflation and economic disruption, resistance from subsidy beneficiaries, and concerns about low-income populations being affected are all major impediments to change.
Recommendations
- Strengthening Social Support Systems: Minimize the impact on vulnerable sections of societies as fossil fuel subsidies are being phased out through such targeted social measures as direct money transfers so that people who need financial help receive it.
- Institutional Reforms for Market Pricing: Let energy pricing become depoliticized by enacting these reforms. This will lead to increased demand for clean energy investments as they become more competitive.
- Gradual Price Adjustments: To prevent economic shocks and allow time for consumers and businesses to adjust, there should be controlled gradual price increases in energy differentiated by types over a specific period.
- Promote Energy Efficiency: Boost industrial efficiency, decrease wastage, and reduce overall energy consumption.
- Transparent Communication: A comprehensive communication strategy that outlines the basis of the reform process, the long-term benefits of reduced reliance on fossil fuel resources, and the role that such reforms play in ensuring economic and environmental stability within the Asia Pacific region should be developed.
Future Projections & Renewable Energy
Asia is expected to witness a surge in its population and urban expansion, therefore leading to an increase in energy demands of 18% by 2030 (Accelerating Asia’s Advantage, 2023). Meeting these requirements sustainably requires diversification of energy sources. Renewable energy has become more relevant to the area, with it becoming more economically feasible as it replaces fossil fuels progressively. Therefore, a key priority towards Asia’s future energy security and environmental health would be investment in renewables besides enhancing their cost competitiveness.
Conclusion
Asia-Pacific has seen remarkable economic growth and has lifted millions of people out of poverty through its development, however, its current carbon-intensive approach is not sustainable. Asia-Pacific is a diverse region and needs tailored solutions to climate change. Regional Development Banks and Governments including international bodies like United Nations Economic and Social Commission for Asia and the Pacific, are required to integrate climate change into their development policies by focusing on a smart low-carbon transition. If Asia-Pacific countries are determined enough and collaborate, then it’s possible to reduce the dependency on fossil fuels and become precursors for a greener energy path that sustains both economic growth and the environment in the future.
Written by Saduni Sathsara and Aviral Kaintura (Edited by Lam Nha Truc and Luke Teoh)