The maximum grant support for investing in energy-efficient technologies will be raised from 50 per cent to 70 per cent for all manufacturing companies from April 1, 2022.
This was announced by Minister for Sustainability and the Environment Grace Fu in Parliament on Tuesday, March 8.
To mitigate impact of higher carbon tax
Fu shared that the enhanced funding aid is meant to help the manufacturing sector mitigate the impact of higher carbon tax.
An increase in carbon tax was earlier announced by Finance Minister Lawrence Wong in his Budget speech in February.
The current rate of S$5/tCO2e will be raised to S$25/tCO2e in 2024 and 2025, and S$45/tCO2e in 2026 and 2027, with a view to reaching S$50-S$80/tCO2e by 2030.
According to Fu, energy-efficient technologies or equipment that companies can invest in will include lighting, air conditioning, boilers, and air compressors.
The National Environment Agency (NEA) said in a statement on Mar. 8 that the enhancements to the Energy Efficiency Fund (E2F) will help manufacturing firms, including SMEs, adopt more energy-efficient measures to help reduce energy costs and carbon emissions.
Projects that achieve higher carbon abatements will be eligible for more grant support.
The E2F was first launched in April 2017, and supports companies in the industrial sector to improve energy efficiency.
Simplified grant application and disbursement
In Parliament, Fu added that the grant application and disbursement process will also be simplified for companies, from Apr. 1.
“I urge companies to take advantage of the higher support level early.”
Fu cited Kawarin Enterprise Private Limited, a local steel manufacturing company, as one SME that had benefitted from the E2F fund, by upgrading their old air compressors to more energy-efficient ones.
They enjoyed annual cost savings of more than S$30,000 and abated about 48 tonnes of carbon annually.
Companies starting out on their energy efficiency journey are also encouraged to tap on the affordable energy assessments offered by the Energy Efficiency Technology Centre (EETC) – an existing collaboration between NEA and the Singapore Institute of Technology (SIT).
The assessments help companies get an accurate picture of their energy profile, which helps them make informed decisions on the measures they could invest in to improve their energy efficiency.
Enhancements to the EETC are in the pipeline, and more details will be shared when ready, said NEA.
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Top image via EDB Singapore