To support businesses in their decarbonisation journeys, the Government has introduced a suite of measures to help companies improve energy efficiency, reduce emissions, and seize opportunities in the green economy.
Energy Efficiency Measures
Industry is the largest energy-consuming sector in Singapore, with significant potential to save energy through better and sustained energy management. Energy efficiency measures provide the economic benefits of lowering energy costs to individuals and businesses while reducing carbon emissions.
The Energy Efficiency Fund, Resource Efficiency Grant for Emissions and the Investment Allowance for Emissions Reduction support businesses in improving the energy efficiency and other forms of emissions reduction (such as reduction in non-CO2 greenhouse gas emissions and flare gas recovery) in their industrial facilities. These measures enable businesses to reduce their carbon footprint, lower operational costs, and increase business competitiveness. We are also supporting local enterprises, particularly Small and Medium Enterprises (SMEs), in building long-term capabilities in sustainability and capturing green growth opportunities through the Enterprise Sustainability Programme.
The Energy Conservation Act (ECA) was enacted in June 2012 and the Energy Conservation (Energy Management Practices) Regulations came into force in April 2013, with the aims of focusing management attention and levelling up laggards in energy management. Mandatory energy management practices stipulated by the ECA included:
- Appointing a certified energy manager;
- Monitoring and reporting energy use and greenhouse gas emissions annually; and
- Submitting energy efficiency improvement plans annually.
In June 2017, the ECA was enhanced to stipulate more energy management practices as part of Singapore’s efforts to achieve its pledge under the Paris Agreement. The enhancements include:
- Strengthening measurement and reporting requirements for greenhouse gas emissions;
- Requiring companies to implement energy management systems, undertake regular energy efficiency opportunity assessments or implement energy performance monitoring;
- Introducing minimum energy efficiency standards for common energy consuming industrial equipment and systems; and
- Requiring companies which are building new energy-intensive facilities to review the facility design of such new ventures for energy efficiency opportunities, and to monitor and report their energy use and performance indicators based on measured data.
Read more about our initiatives to improve industrial energy efficiency, which include:
- The Energy Services Company (ESCO) Accreditation Scheme and Singapore Certified Energy Manager (SCEM) Programme to help grow technical and professional capabilities in Singapore; and
- The Energy Efficiency National Partnership Programme, a voluntary programme launched by NEA, EDB and EMA in 2010, which aims to foster a culture of sustained energy efficiency improvement in industry.
Transforming the Energy & Chemicals Sector
The Sustainable Jurong Island report details plans to transform Jurong Island into a Sustainable Energy & Chemicals (E&C) Park that operates sustainably and exports sustainable chemicals globally. By 2030, Singapore aims to increase output of sustainable products by 1.5 times from 2019 levels, and realise at least 2 MtCO2e of carbon capture potential. By 2050, we aspire to increase the output of sustainable products by four times from 2019 levels, and achieve more than 6 MtCO2e of carbon abatement per annum from low-carbon solutions.
To support the industry in its efforts to transform Jurong Island, the Government is putting in place infrastructure and support measures:
- Incorporating sustainability into the planning of greenfield sites and investments
- Building specialised or shared infrastructure
- Conceptualising the CCU Translational Testbed to accelerate the development of CCU technologies in Singapore
- Introducing incentives to support the adoption of decarbonisation measures
- Supporting R&D in low-carbon solutions
Carbon Capture, Utilisation and Storage (CCUS)
We are also exploring possible CCUS deployment pathways. Carbon dioxide captured from industrial facilities in Singapore could be sequestered in suitable sub-surface geological formations, utilised as feedstock for synthetic fuels or as building materials through mineralisation. Singapore will continue to monitor technological and market developments, and scale up deployment as pathways become techno-economically viable. For Jurong Island, we aim to realise at least 2 MtCO2e of carbon capture potential per annum by 2030, and achieve more than 6 MtCO2e of carbon abatement per annum by 2050.
Read the CCUS feasibility study report, “Carbon Capture, Storage, and Utilisation: Decarbonisation Pathways for Singapore’s Energy and Chemicals Sectors”, which was jointly commissioned by the National Climate Change Secretariat (NCCS) and Singapore’s Economic Development Board (EDB), and concluded in June 2021.
Given its potential as an alternative fuel and industrial feedstock, low-carbon hydrogen has emerged as a key potential decarbonisation pathway for Singapore. Although many low-carbon hydrogen technologies and supply chains are still nascent, Singapore is taking steps to prepare for hydrogen deployment. Read more about our hydrogen strategy.
Singapore’s energy efficiency measures, sectoral transformation plans, and development of hydrogen and CCUS technologies complement our carbon tax in helping our businesses transition to a green economy.