Major Polluters Deserve "Breathing Space," Says Singapore's DBS Bank

Viktoria Ivanova

6 min read

Post on May 08, 2025

4.4

Share

DBS Bank's Rationale: Understanding the "Breathing Space" Argument

DBS Bank's advocacy for a "breathing space" for major polluting industries likely stems from a complex interplay of economic, technological, and ethical considerations. Let's delve into the key arguments underpinning their position.

Economic Considerations: The Cost of Abrupt Change

A sudden and drastic reduction in emissions could have severe economic repercussions. DBS may argue that a phased approach is necessary to avoid:

• Significant job losses: Industries heavily reliant on fossil fuels, such as manufacturing and transportation, could face mass layoffs without a carefully managed transition.
• Economic instability: The abrupt shutdown of polluting industries could trigger economic instability, impacting entire national economies.
• Disruption of supply chains: A rapid shift away from traditional energy sources could disrupt established supply chains, leading to shortages and price hikes.

For example, the coal mining industry, a major source of carbon emissions, requires substantial investment in retraining and alternative employment opportunities for workers during the transition to renewable energy. Overly aggressive regulations could lead to unintended consequences, such as increased unemployment and social unrest.

Technological Limitations: The Need for Green Innovation

The "breathing space" argument also hinges on the current limitations of green technologies. The transition to a low-carbon economy requires significant advancements in:

• Renewable energy sources: Scaling up solar, wind, and other renewable energy sources to meet global energy demands requires substantial investment and technological breakthroughs.
• Carbon capture and storage (CCS) technologies: CCS technologies, which capture CO2 emissions from power plants and industrial facilities, are still under development and require further refinement for widespread implementation.
• Energy storage solutions: Efficient and cost-effective energy storage solutions are crucial to address the intermittency of renewable energy sources.

Making green technologies cost-effective and accessible on a global scale presents a significant challenge. R&D investment and technological innovation are crucial to bridging this gap.

Global Equity and Development: A Just Transition

The argument for "breathing space" often includes a plea for global equity. Developing nations, with their often limited access to resources and technology, may require more time to transition to cleaner energy sources. This includes considering:

• Differences in economic development: Developing countries may prioritize economic growth and poverty reduction, potentially delaying ambitious climate action targets.
• Access to technology and finance: Many developing nations lack the financial resources and technological expertise necessary for rapid decarbonization.
• Climate justice: The principle of climate justice emphasizes the responsibility of developed nations, historically the largest contributors to climate change, to support developing countries in their transition to sustainability.

Failing to consider these disparities risks placing an unfair burden on developing countries and undermining global cooperation in tackling climate change.

Criticisms and Counterarguments: Is "Breathing Space" a Valid Excuse for Inaction?

While DBS Bank's concerns about economic and technological challenges are valid, the "breathing space" argument faces significant criticism.

The Urgency of Climate Action: The Science is Clear

The scientific consensus, as evidenced by numerous IPCC reports, is undeniable. Delaying drastic action on climate change carries immense risks, including:

• Rising sea levels: Coastal communities and island nations face inundation and displacement.
• More frequent and intense extreme weather events: Hurricanes, droughts, floods, and heatwaves are becoming increasingly common and devastating.
• Biodiversity loss: Climate change is driving species extinction and disrupting ecosystems.

Limiting global warming to 1.5°C, as stipulated in the Paris Agreement, requires immediate and substantial reductions in greenhouse gas emissions. Delaying action will exponentially increase the severity of future climate impacts.

Greenwashing Concerns: A Convenient Excuse?

Critics argue that the "breathing space" argument could be exploited as a form of greenwashing, allowing large corporations to continue polluting under the guise of a gradual transition. This includes concerns about:

• Lack of transparency and accountability: Corporations may use the "breathing space" argument to avoid setting ambitious emission reduction targets.
• Continued investment in fossil fuels: Banks and financial institutions may continue to finance polluting projects, hindering the transition to a low-carbon economy.
• Conflict of interest: Financial institutions that profit from fossil fuel industries may have a vested interest in delaying the transition.

This raises serious concerns about corporate responsibility and the need for stricter regulations to prevent greenwashing.

Alternative Approaches: A Just and Equitable Transition

Achieving emissions reductions without jeopardizing economic stability is possible through alternative strategies such as:

• Carbon pricing mechanisms: Implementing carbon taxes or cap-and-trade systems can incentivize emissions reductions while generating revenue for green investments.
• Investment in green technologies: Significant investment in research, development, and deployment of renewable energy technologies is crucial.
• Policies supporting a just transition: Governments can implement policies that support workers in affected industries, providing retraining and alternative employment opportunities.

These approaches address both environmental concerns and economic realities, offering a more sustainable and equitable path to a low-carbon future.

The Role of Financial Institutions: DBS Bank's Responsibility in the Transition

Financial institutions like DBS Bank play a crucial role in financing the transition to a low-carbon economy. DBS has the power to:

• Shift investments towards sustainable projects: Prioritizing investments in renewable energy, energy efficiency, and other green technologies.
• Divest from polluting industries: Phasing out investments in fossil fuel companies and other high-carbon industries.
• Improve transparency in environmental reporting: Publicly disclosing the environmental impacts of their investments and financing activities.

DBS's actions will significantly influence the pace and direction of the global transition to sustainability.

Conclusion: Navigating the Complexities of Climate Action – Beyond "Breathing Space"

The debate surrounding "breathing space" for major polluters highlights the complex interplay between economic realities, technological limitations, and the urgent need for climate action. While concerns about economic disruption and technological challenges are valid, delaying significant emission reductions is simply not an option. The scientific evidence overwhelmingly supports the need for immediate and decisive action. Greenwashing must be actively countered, and financial institutions like DBS Bank have a critical role to play in facilitating a just and equitable transition to a low-carbon economy through transparent actions and sustainable investment. We urge readers to learn more about climate change, advocate for stronger environmental policies, and demand accountability from corporations and financial institutions. Let's move beyond the concept of "breathing space" and actively pursue effective pollution reduction strategies today. Engage with DBS Bank and other financial institutions to demand action beyond mere lip service and push for real, substantial change in mitigating climate change.