More support for manufacturing firms, SMEs to reduce emissions

Manufacturing firms, including small and medium-sized enterprises (SMEs), will from next month get more funding aid under an existing scheme to buy and adopt energy-efficient technologies.

Minister for Sustainability and the Environment Grace Fu told Parliament the enhancements to the Energy Efficiency Fund (E2F) will help such firms reduce their emissions and cut their utility bills.

The grant cap for the energy-efficient technologies component of the fund will be raised from 50 per cent to 70 per cent on April 1.

Such technologies include high-efficiency air-conditioning systems, LED lighting and more efficient boiler systems. The higher co-funding of up to 70 per cent will help to cover the cost of technology and equipment, as well as external manpower and professional services, said the National Environment Agency (NEA). It launched the E2F in 2017 to help companies in the industrial sector, including SMEs, improve their energy efficiency.

Under the enhanced funding scheme, projects that achieve higher carbon abatements can receive more grants.

Ms Fu said that while many SMEs are dynamic and creative, they often lack resources to invest in energy-efficient technologies or make changes to their businesses. "Improving energy efficiency is one of the primary ways that businesses can lower their carbon emissions. We will provide targeted support to help every sector decarbonise."

Adopting energy-efficient technologies will also help the manufacturing sector manage the impacts of a higher carbon tax. Last month's Budget announced that the carbon tax would be raised from the current $5 a tonne of emissions to between $50 and $80 by 2030.

As at January this year, the E2F has supported 27 technology projects, which have slashed carbon emissions by around 1,600 tonnes a year - equivalent to taking about 500 cars off the road, said NEA.

Ms Fu said more than $75 million has been used to help businesses implement energy efficiency and carbon abatement projects.

She cited how a local steel manufacturing company, Kawarin Enterprise, has benefited from the fund by upgrading its old air compressors to more energy-efficient ones. "It enjoyed annual cost savings of more than $30,000, and abated about 48 tonnes of carbon annually," she added.

Ms Fu urged companies to take advantage of the enhanced funding support early. NEA said the grant application and disbursement process for the E2F will be simplified from April 1. For instance, the process of measuring and verifying the amount of energy savings for each project will be streamlined.

Companies that are starting energy efficiency projects can take up assessments offered by the Energy Efficiency Technology Centre - an existing initiative by NEA and the Singapore Institute of Technology. The centre's energy assessments help firms explore methods they can invest in to improve their energy efficiency. It also trains engineering students in industrial energy efficiency, and helps to upskill existing employees in this field.

To further boost its teaching capabilities, a new training and simulation facility will be set up at the centre for learners to practise their skills in a realistic environment, said Ms Fu.