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Green Infrastructure Finance

Green Investment Climate Country Profile – Singapore

East Asia and Pacific Region


Copyright Š2013 International Bank for Reconstruction and Development/The World Bank East Asia and Pacific Region/Water and Energy Management Unit (EASWE) 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org

All rights reserved This volume is a joint publication of the staff of the International Bank for Reconstruction and Development/ The World Bank and the Australian Agency for International Development (AusAID). The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of The World Bank, its Board of Executive Directors, the governments they represent, or AusAID. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Moreover, the statistical database and other country-related information is time sensitive and subject to updates and/or changes. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to the work is given. For permission to reproduce any part of this work for commercial purposes, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; Telephone: 978-750-8400; Fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Task Team Leader, Aldo Baietti: The World Bank, 1818 H Street NW, Washington, DC 20433, USA; e-mail: abaietti@worldbank.org.

Design: Miki FernĂĄndez, ULTRA Designs, Inc., miki@ultradesigns.com


Table of Contents Acknowledgements................................................................................................................................................ iii List of Abbreviations and Acronyms.......................................................................................................................iv 1. Statistical Overview........................................................................................................................................... 2 2. Energy................................................................................................................................................................ 4 3. Green Policies and Incentives............................................................................................................................ 5 4. Green Programs and Institutions.................................................................................................................... 10 5. Green Regulatory Framework........................................................................................................................ 11 6. Investment Trends and Challenges................................................................................................................. 12 7. Concluding Remarks........................................................................................................................................ 14 8. Summary of Policy Instruments...................................................................................................................... 15 9. Annex............................................................................................................................................................... 16 10. References........................................................................................................................................................ 39 List of Tables and Figures: Table 1: Electricity Generation by Source (% of total)........................................................................................... 4 Table 2: Green Plan 2012 and Sustainable Blueprint 2009 Targets....................................................................... 5 Table 3: NCCS 2012 Sectoral Measures to Reduce Emissions................................................................................. 6 Table 4: Range of Green Cost Premiums & Pay-Back Periods................................................................................ 7 Table 5: Standard and Poor’s Foreign Currency Rating....................................................................................... 12 Table 6: FDI (net BoP, current US$)........................................................................................................................ 13 Table 7: Detail of the Cash Incentive for Upgrading and Retrofitting Scheme................................................. 22 Table 8: Singapore’s Sustainable Development Criteria...................................................................................... 25 Figure 1: Total Primary Energy Supply.................................................................................................................... 4 Figure 2: The Energy Label...................................................................................................................................... 8 Figure 3: Global Competitiveness Index............................................................................................................... 12 Figure 4: Corruption Perceptions Index 2011....................................................................................................... 13 Figure 5: Second Green Building Master Plan’s Thrusts....................................................................................... 19 Figure 6: Members of the E2PO............................................................................................................................ 30 Figure 7: Climate Change Organization Structure............................................................................................... 32 Figure 8: Related Government Ministries and Statutory Boards......................................................................... 33 Figure 9: Sectoral Contributions to Emission in 2005 and 2020 BAU (projected).............................................. 37

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Green Investment Climate Country Profile - Singapore

Acknowledgements

T

his country profile has been prepared by the East Asia and Pacific Region of the World Bank. The work was led by Aldo Baietti, Lead Infrastructure Specialist (EASWE) under the overall guidance of John Roome, Sector Director (EASSD) and Charles Feinstein, Sector Manager (EASWE). The team and co-authors included Andrey Shlyakhtenko and Roberto La Rocca (EASWE) from the World Bank. The team wishes to acknowledge the peer reviewers and other contributors inside and outside the World Bank Group including, the Ministry of Trade and Industry team, the Energy Market Authority team, the National Environment Agency team, Jean Chia, Manager (Center for Livable Cities), Suk Harn Jeanette Lim, Energy Specialist (EASWE), Alexander Jett, Research Analyst (TWISI), John Probyn (PPIAF), Bastiaan Verink (TWISI), Banuchandar Nagarajan, Amar Causevic (EASWE) and 10EQS, Ltd. Edward Charles Warwick edited the report. Finally, the team wishes to acknowledge the generous support from the Australian Agency for International Development (AusAID) provided through the World Bank East Asia and Pacific Infrastructure for Growth Trust Fund (EAAIG).

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Green Infrastructure Finance

List of Abbreviations and Acronyms ADAS

One-Year Accelerated Depreciation Allowance for Energy Efficient Equipment and Technology

APEC

Asia-Pacific Economic Cooperation

A*STAR

Agency for Science, Technology and Research

BAU

Business-as-Usual

BCA

Building and Construction Authority

BREEF

Building Retrofit Energy Efficiency Financing

CDM

Clean Development Mechanism

CEPO

Clean Energy Program Office

CER

Certified Emission Reduction

CERT

Clean Energy Research and Test-bedding Program

CEVS

Carbon Emissions-based Vehicle Scheme

CNG

Compressed Natural Gas

CO2

Carbon Dioxide

CPI

Corruption Perceptions Index

DfE

Design for Efficiency

EASe

Energy Efficiency Improvement Assistance Scheme

EDB

Economic Development Board

EE

Energy Efficiency

EENP

Energy Efficiency National Partnership

EIPO

Energy Innovation Program Office

EIRP

Energy Innovation Research Program

EMA

Energy Market Authority

EPGC

Experimental Power Grid Centre

ERIN@NTU

Energy Research Institute at Nanyang Technological University

ESCO

Energy Services Company

ETRP

Environment Technology Research Program

EV

Electric Vehicle

Exco

Executive Committee

E2PO

Energy Efficient Singapore

FDI

Foreign Direct Investment

FiTs

Feed-in Tariffs

FTA

Free Trade Agreements

g

Grams

iv

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Green Investment Climate Country Profile - Singapore

GDP

Gross Domestic Product

GHG

Greenhouse Gas

GM-GFA

Green Mark Gross Floor Area

GMIS-DP

Green Mark Incentive Scheme for Design Prototype

GMIS-EB

Green Mark Incentive Scheme for Existing Buildings

GNP

Gross National Product

GREET

Grant for Energy Efficient Technologies

GSRE

Government Strategy on Renewable Energy

GTP

Global Trader Program

GVRS

Green Vehicle Rebate Scheme

GWh

Gigawatt Hours

ha

Hectares

HDB

Housing and Development Board

HEMS

Home Energy Management System

IA

Investment Allowance

IES

Innovation for Environmental Sustainability

IHL

Institutes of Higher Learning

IMCC

Inter-Ministerial Committee on Climate Change

IMCSD

Inter-Ministerial Committee for Sustainable Development

IT

Information Technology

Kgoe

Kilogram(s) of Oil Equivalent

km

Kilometers

kWh

Kilowatt Hour

kW/RT

Kilowatts per Refrigeration Ton

L

Liter

LTA

Land Transport Authority

MELS

Mandatory Energy Labeling Scheme

MEPS

Minimum Energy Performance Standards

MEWR

Ministry of Environment and Water Resources

MND

Ministry of National Development

MOTI

Ministry of Trade and Industry

Mt

Metric Ton

Mtoe

Million Tons of Oil Equivalents

MW

Megawatt

MWp

Megawatt Peak

2

m

Square Meters

m

3

Cubic Meters

m/s

Meter per Second

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v


NA

Not Available

NCCS

National Climate Change Strategy

NEA

National Environment Agency

NRF

National Research Foundation

OMV

Open Market Value

PFI

Participating Financial Institutions

PM

Particulate Matter Air Pollution

PPP

Public-Private Partnership

PV

Photovoltaic

RE

Renewable Energy

R&D

Research and Development

SCEM

Singapore Certified Energy Manager

SCS

Solar Capability Scheme

SERIS

Solar Energy Research Institute of Singapore

SGP

Singapore Green Plan

S&P’s

Standards and Poor’s

S$

Singapore Dollar

TJ

Terajoules

TPES

Total Primary Energy Supply

URA

Urban Redevelopment Authority

US$

United States Dollar

VER

Voluntary Emissions Reductions

3P

People, Private and Public

μg/m

3

Microgram per Cubic Meter


Green Investment Climate Country Profile - Singapore

Singapore is a city-state of 63 islands located off the southern tip of the Malaysian Peninsula. With a population of about 5 million and a land area of approximately 712 km2, it is one of the most highly urbanized and densely populated countries in the world.1 It is a tropical state with scarce indigenous energy resources and hence is a net importer of energy. Singapore ranks among the countries with the highest GDP per capita. Its economy is characterized by a strong service industry and dependence on exports.

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Indonesia

Philippines

Vietnam

China

Rep. of Korea

Singapore

Malaysia

1. Statistical Overview

847

225

124

7,318

1,116

240

278

242

95

88

1,344

50

5

29

49.9

48.7

30.4

49.2

82.9

100

72

5.1

4.5

6.4

9.6

3.4

5.8

4.5

24.7

50.9

48.8

16.5

34.7

108.3

51.8

5.4

4.7

18.7

5.4

4.0

5.2

3.2

Agriculture

15

12

21

10

3

0

11

Industry

47

33

41

47

39

28

44

Services

38

55

38

43

58

72

45

Energy production (Mtoe)9

352

24

77

2,085

44

0.03

90

Energy use (Mtoe)

202

39

64

2,257

229

19

67

Net energy exports/imports (Mtoe)10

147

(19)

11

(185)

NA

(51)

18

71

90

98

99

100

100

99

Electric transmission and distribution losses (%)

9.4

12.1

9.6

4.9

3.7

5.2

3.8

Energy intensity (kgoe/US$1,000 2005 PPP)

230

126

274

273

184

80

191

Macro Indicators GDP (current US$ billion)2 Population (million)

3

Urban population (% of total)

4

Economic Indicators Constant GDP 10 Year CAGR (%)5 Public debt (% of GDP)

6

Inflation, consumer prices (annual %)

7

Sector mix (% of GDP)8

Energy Indicators 9

Electricity access (% of population)

11 12

13

CO2 emissions (Mt of CO2)

376

71

114

6,832

515

45

208

Electricity tariffs (US$/kWh)15

0.07

0.14

0.05

NA

0.13

0.22

NA

6,095

348

165

126,215

139

NA

4.4

14,i

Fossil fuel endowment

16

Coal (2008, million short tons)

3.9

0.1

4.4

20.4

0

0

4

141.1

3.5

24.7

107

0.3

0

83

Coal and peat

15.1

15.2

19.7

67.2

28.3

0

15.8

Crude oil

Oil (2012, billion barrels) Natural gas (2012, trillion cubic feet) Total Primary Energy Supply (%)17

26.5

19.3

4.2

16.8

39.5

61.4

35.5

Oil products

6.7

14.3

21.2

0

0

0

0

Natural gas

17.4

8.3

11.1

3.3

13.8

38.4

43.4

0

0

0

0.8

16.8

0

0

Nuclear Hydro

0.5

2.2

4.0

2.4

0.1

0

0.9

Geothermal, solar, wind

7.9

22.9

0

0.5

0.1

0

0

i CO2 emissions from fuel combustion only.

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Indonesia

Philippines

Vietnam

China

Rep. of Korea

Singapore

Malaysia

Green Investment Climate Country Profile - Singapore

26.0

17.9

39.3

9

1.3

0.2

4.5

0

0

0.5

0

0

0

0

Renewables

13.3

32.6

36

17.5

1

0.1

6.3

Oil

22.8

8.7

2.5

0.4

4.4

18.8

2.0

0

0

0

1.9

32.7

0

0

Natural Gas

22.1

32.1

43.4

1.4

15.6

81.0

60.7

Coal

41.8

26.6

18

78.8

46.2

0

30.9

S&P’s Credit Rating (Foreign Currency)19

BB+

BB+

BB-

AA-

A+

AAA

A-

Doing Business Ranking

129

136

98

91

8

1

18

CPI Transparency Ranking

100

129

112

75

43

5

60

FDI, net (% of GDP)22

1.6

0.3

6.8

2.2

(1.9)

8.5

1.6

37,113 45,114

8,328

78,438

NA

NA

46,401

Energy Indicators (cont.) Combustible renewable and waste Electricity and heat Electricity Sources (%)

18

Nuclear

Investment Climate 20 21

PPI (US$ million)23,ii PPI renewable energy (US$ million)

23

Lending interest rate (%)

24

Lending - deposit spread (%)25 Liquid assets to deposits and short term funding (%)

26

3,876

3,844

1,839

8,380

NA

NA

198

13.2

7.7

13.1

5.9

5.4

5.6

5

6

4

2

3

2

5

3

30

29

35

20

8

37

27

ii Investments amounts include greenfield projects, concessions and management, and lease contracts.

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2. Energy

S

ingapore has limited indigenous resources and has relied on fossil fuel imports to meet its energy needs. Historically, oil has been a mainstay of the total primary energy supply (TPES) and electricity generation. However, oil’s share in the country’s TPES and electricity production has decreased. This occurred first in the 1990s with the rise of the natural gas industry and then reducing further with the continued expansion of natural gas in the 2000s.

Figure 1: Total Primary Energy Supply Combustible renewables and waste 0.1%

Natural gas 38.3%

Oil 61.4%

Coal & Peat 0.02%

Source: International Energy Agency, 2009.28

Today, about 80 percent of the country’s electricity is based on gas imports.27 The Government expects the demand for natural gas to increase further with the opening of the Liquefied Natural Gas terminal in 2013. In addition to importing natural gas for electricity generation, the country imports sizeable quantities of crude oil. Singapore exports petroleum and oil products. Petroleum represents more than half of the country’s energy exports. Petroleum is refined and successively exported in the form of oil products. Such energy exports make Singapore the leading regional and the world’s third largest oil refining hub.

Table 1: Electricity Generation by Source (% of total) Renewables Oil Natural gas

2002 0.1 56.2 43.5

2009 0.1 18.8 81

Source: International Energy Agency, 2009.29

Singapore’s CO2 levels account for less than 0.2 percent of the global emissions. However, per capita carbon emissions remain high due to a small population and high levels of economic activity. Singapore’s per capita energy consumption is among the highest in the world. Nevertheless, due to a high GNP, the energy intensity is low in comparison to some of the more developed countries in the region. Although Singapore’s potential for renewable energy (RE) development is limited, energy efficiency (EE) has been an area of focus in the country’s sustainable development agenda. Singapore’s EE has improved by over 15 percent from 1990 by introducing efficient technologies and raising awareness on sustainable green growth.30 The Government has embarked on various EE efforts, which aim to achieve a 35 percent energy intensity reduction by 2030 compared to 2005 levels and a seven to 11 percent reduction of carbon emission from the business-as-usual (BAU) levels by 2020. Singapore has also pledged to reduce carbon emissions by 16 percent from BAU levels by 2020.

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3. Green Policies and Incentives

T

he Green Plan 2012 and Sustainable Blueprint 2009 Targets are two key polices of Government in promoting sustainable development. In general, the Green Plan concept identifies six focus areas: (i) clean air and climate change; (ii) water; (iii) waste management; (iv) nature conservation; (v) public health; and (vi) international environmental relations. Together with these six priority areas, SGP 2012 provides a number of environmental targets many of which have already been met by the Government. Table 2: Green Plan 2012 and Sustainable Blueprint 2009 Targets Sustainable Blueprint 2009 Targets

SGP 2012 Targets Clean Air and Climate Change

Water

■■

To reduce the ambient PM 2.5 level to within an annual average of 15 μg/m3 by 2014

■■

To reduce ambient PM 2.5 level to 12 μg/m3 by 2020 and maintain at this level till 2030

■■

To improve carbon intensity by 25% from 1990 levels by 2012

■■

To reduce energy intensity (energy consumed per dollar GDP) by 20% from 2005 levels by 2020, and by 35% from 2005 levels by 2030

■■

Increase supply of water from nonconventional sources

■■

■■

Ensure that water quality continues to meet international standards

Expand new water and desalination infrastructure to support future industry needs

■■

Reduce domestic water consumption to 155 L per person per day by 2012

Improve overall water quality and the water quality at all popular beaches

■■

Reduce domestic water consumption to 147 L per person per day by 2020 and to 140 L by 2030

■■

Waste Management

■■

Increase the overall waste recycling rate from 40% in 2000 to 60% by 2012

■■

Achieve 65% and 70% overall waste recycling rate by 2020 and 2030, respectively

Nature Conservation

■■

Verify and update information on indigenous flora and fauna through biodiversity surveys

■■

Implement a National Biodiversity Strategy and Action Plan

■■

Develop a City Biodiversity Index

■■

Establish more parks and green linkages

■■

Provide 0.8 ha of park land per 1000 persons by 2030

■■

Add 30 ha and 50 ha of skyrise greenery by 2020 and 2030, respectively

■■

Sustain public education, cleaning and enforcement

Public Health

■■

Increase community ownership to sustain a high standard of public health

Sources: Inter-Ministerial Committee on Sustainable Development of Singapore, 2009; and Ministry of Environment and Water Resources of Singapore, 2012.31

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In 2009, the Inter-Ministerial Committee for Sustainable Development (IMCSD) unveiled the Sustainable Singapore Blueprint and updated the SGP 2012 targets. The Blueprint has a 20-year time-frame and has identified intermediate goals to be achieved by 2020 and long term goals to be achieved by 2030. Specifically, the blueprint’s goal for the energy sector is to reduce energy intensity by 20 percent and 35 percent by 2020 and 2030, respectively, from the 2005 levels.

Table 3: NCCS 2012 Sectoral Measures to Reduce Emissions SGP 2012 Targets Power Generation

Waste/Water

Households

Buildings

Singapore has also made pledges to reduce its carbon emissions by 7 to 11 percent below BAU levels by 2020. The Government revised the target upwards to 16 percent depending on whether a global deal on climate change materializes. The National Climate Change Strategy (NCCS) of 2012 outlines the country’s strategy and plans to meet its climate change targets and build a low-carbon economy.32 This provides a number of sector-wise measures for addressing market barriers to EE and reducing CO2 emissions.

Transport

Industry

■■

Switch fuel mix away from fuel oil to natural gas for power generation

■■

Encourage more solar test-bedding and research

■■

Incinerate sludge rather than dispose in landfill

■■

Reduce plastics incineration

■■

Tighten MEPS for household airconditioners and refrigerators (2013)

■■

Extend MEPS to lighting (2014) and more appliances

■■

Require Green Mark Certification for all new buildings

■■

Require Green Mark Certification for existing buildings when retrofitted (2013)

■■

Audit of building cooling systems every three years in new and existing buildings that have undergone retrofitting (2013)

■■

Submit energy consumption and energy-related building data (2013)

■■

Achieve 70:30 modal split between public and private transport

■■

Implement CEVS to encourage purchase of low carbon emissions cars (2013)

■■

Extend the GREET scheme (2012)

■■

Develop and support EE financing

In 2007, Singapore drafted Energy pilot schemes (2012) Efficient Singapore (E2PO), the coun■■ Encourage new co-generation plants try’s EE master plan. The Government in energy intensive sectors is strengthening E2PO based on the EE Source: National Climate Change Strategy, 2012.33 objectives of NCCS 2012. E2PO’s three priority areas are: (i) promoting the adoption of energy efficient technology and measures; (ii) promoting research and development (R&D) and capacity building in the field of EE; and (iii) raising awareness.

1. Promoting the adoption of energy efficient technology and measures The Government recognizes the importance of a multi-sectoral approach in EE covering power generation, industry, buildings, transport and households.

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Power Sector In the power sector, the Government has been encouraging co-generation and tri-generation technologies to optimize heat utilization from fuel combustion and improve overall efficiency. Industry Industrial operations benefit from the Design for Efficiency (DfE) and the Grant for Energy Efficient Technologies (GREET) schemes. Through the DfE, the Government offers grants for the development of design workshops linked to EE. The DfE aims to encourage investors in new facilities to design energy efficient manufacturing processes and provides up to 80 percent or S$600,000 (whichever is lower) of the costs needed to organize a design workshop.iii With GREET, the National Environment Agency (NEA) and Economic Development Board (EDB) provide up to 20 percent of the costs (capped at S$2 million per project) of energy efficient investments. The Government provides a One-Year Accelerated Depreciation Allowance for Energy Efficient Equipment and Technology (ADAS) in order to incentivize companies to upgrade their obsolete equipment. Through such accelerated depreciation, capital expenditures can be written off in one year instead of three. An EE Financing program is also being piloted by the Government. This program involves the financing of EE projects by third parties, such as financial institutions or energy service companies. The program aims to: (i) address the market barrier of high upfront costs of EE investments; and (ii) catalyze increased private financing of EE. Buildings The Building and Construction Authority (BCA) has developed the Green Mark Scheme, which is the flagship rating system to assess buildings for their environmental impact and performance.iv BCA has also developed incentive schemes, such as: ■■

■■

Green Mark Gross Floor Area (GM-GFA) scheme to encourage developers to achieve higher ratings of Green Mark Platinum and Gold Plus;

Table 4: Range of Green Cost Premiums and Pay-Back Periods BCA Green Mark Award Type

Green Cost Premium (%)

Payback Period (years)

Platinum

2 to 8

2 to 8

Gold Plus

1 to 3

2 to 6

Gold

1 to 2

2 to 6

0.3 to 1

2 to 5

Certified

Source: Building and Construction Authority, 2012.34

Green Mark Incentive Scheme for Existing Buildings (GMIS-EB) to help building owners offset part of the retrofitting costs of improving EE of existing buildings; and

iii Singapore dollar (S$) exchange rate is approximately S$1.222 = US$1. iv The BCA Green Mark Scheme was launched in January 2005. This green building rating system promotes the adoption of green building design and technologies that improve EE and reduce the impact of buildings on the environment. Under the BCA Green Mark Scheme, buildings are assessed for energy, water efficiency, indoor environmental quality and environmental protection. In April 2008, the Building Control (Environmental Sustainability) Regulations 2008 took effect, requiring new buildings and existing ones undergoing major retrofitting with a gross floor area greater than 2,000m2 to achieve the minimum Green Mark Certified level.

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■■

Green Mark Incentive Scheme for Design Prototype (GMIS-DP) for the design of breakthrough prototypes that can achieve ratings beyond Green Mark Platinum.

The EASe Scheme provides up to 50 percent of the costs needed to engage experts or an energy services company (ESCO) to carry out energy assessments for companies operating in sectors such as manufacturing and construction. The amount of funding is capped at S$200,000 over a five-year period and does not cover the costs of implementing EE measures. Transport In the transport sector, the Government has funded a number of interventions, including: (i) the promotion of public transportation; (ii) the management of car ownership through the Vehicle Quota System; (iii) the establishment of incentives for the purchase of hybrid vehicles through the Green Vehicle Rebate Scheme (GVRS); (iv) the implementation of the mandatory Fuel Economy Labeling Scheme Euro IV emissions standard; and (v) the test-bedding of new technologies such as, the Diesel Particulate Filter.35 Households In the household sector, Minimum Energy Performance Standards (MEPS) and Mandatory Energy Labeling Scheme (MELS) have been introduced. MEPS were established in 2011 for household air-conditioners and refrigerators. Lifecycle costs for consumers are minimized without overly constraining the availability of appliances and choice of models. In 2013, MEPS for household air-conditioners and refrigerators will be tightened and, in 2014, MEPS will be extended to cover general lighting. The voluntary Singapore Green Labeling Scheme for air conditioners and refrigerators — two of the most energy-consuming household appliances — was initially launched in 2002 and became mandatory in 2008. The scheme is administered by the NEA. In 2008, it was extended to domestic clothes dryers.36 Similarly, some categories of motor vehicles have been included as registrable goods from April 1, 2009. Registered suppliers of motor vehicles sold in Singapore must affix a Fuel Economy Label on the vehicles.

Figure 2: The Energy Label

Source: National Environmental Agency, 2012.36

2. Promoting research and development and capacity building E2PO Singapore’s second area of focus is R&D and capacity building. R&D projects in the test-bedding and demonstration phases of technology development are supported through the Innovation for the Environmental Sustainability Fund across all the sectors. The power, industry and building

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Green Investment Climate Country Profile - Singapore

construction sectors also benefit from the ESCO Accreditation Scheme and the Singapore Certified Energy Manager (SCEM) Program and Training Grant. Moreover, the Government has established a Green Building R&D fund specifically designed to increase research in the building sector.

3. Raising awareness Finally, the Government is also active in raising awareness of EE measures. The Government periodically organizes seminars and workshops to discuss how to advance the country’s EE agenda. Also, the Government maintains a web portal about EE and the Public Awareness Program.

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4. Green Programs and Institutions

T

he Energy Innovation Program Office (EIPO), formerly known as the Clean Energy Program Office (CEPO), was established in 2007. It is an inter-agency group co-chaired by the EDB and Energy Market Authority (EMA).

In 2011, EIPO announced that an additional S$195 million from the National Research Foundation (NRF) will be allocated to promote R&D in the energy sector over the next five years. EIPO manages the Energy Innovation Research Program (EIRP), a competitive funding initiative directed at supporting interdisciplinary and commercially relevant R&D efforts. In addition to the EIRP, the Clean Energy Research and Test-bedding Program (CERT) and the Solar Capability Scheme (SCS) encourage to test-bed RE technologies. The CERT is a S$17 million funding initiative that encourages companies to develop solutions and to test-bed their technologies in Singapore. The program brings together a number of different players, including: (i) R&D organizations, which conduct test-bedding activities; (ii) private sector companies, which provide the equipment and technologies needed to take part in test-bedding projects; and (iii) government agencies, which provide the test-bedding locations. The SCS incentivizes installation of solar technologies in energy efficient buildings by offsetting a part of the capital cost borne by private developers. This will strengthen the engineering, architecture and system integration capabilities of Singaporebased solar companies, and encourage innovative integration of solar panels into green buildings. Test-bedding projects including: (i) the Intelligent Energy System Pilot, which aims to test and evaluate new applications and technologies such as, smart meters and demand response; (ii) the BCA Zero Energy Building, which generates its own electricity from solar panels and reduces its energy needs through the use of green building technology and design; (iii) the Electric Vehicle (EV) Test Bed, which aims to assess the feasibility of adopting EVs in Singapore; and (iv) the Floating PV Pilot Project, which aims to test-bed the feasibility and environmental impact of installing solar photovoltaic (PV) systems on Singapore’s reservoirs.

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Green Investment Climate Country Profile - Singapore

5. Green Regulatory Framework

S

ingapore has a number of dedicated regulatory agencies, including the NEA (National Energy Agency), the EMA (Energy Market Authority) and the BCA (Building and Construction Authority).

The NEA, formed on July 1, 2002, is a statutory board under the Ministry of the Environment and Water Resources (MEWR). The NEA aims to protect air, land and water resources in Singapore as well as ensure high standards of public health through providing environmental and meteorological services, and promoting awareness. EMA, formed on April 1, 2001, is a statutory board under the Ministry of Trade and Industry (MOTI). Its main goals are to ensure reliable and secure energy supply, promote effective competition in the energy market and develop a dynamic energy sector in Singapore. The BCA is an agency under the Ministry of National Development (MND), advocating for the development of high-quality infrastructure in Singapore. The BCA focuses on four key areas: (i) safety; (ii) quality; (iii) sustainability; and (iv) user-friendliness. BCA was established on April 1, 1999 through the merger of the Construction Industry Development Board and the Building Control Division of the former Public Works Department. The Government has placed significant emphasis on enhancing value for money through leveraging private participation in infrastructure projects. According to the public-private partnership (PPP) Advisory Council and PPP guidelines created by the Ministry of Finance, all infrastructure projects with a total cost of more than S$50 million should be screened for PPP development.

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6. Investment Trends and Challenges

S

ingapore’s high investment-grade rating (AAA by S&P’s) can be attributed to its stable economic environment, rapid growth and rising per-capita income. The country’s economic success is due to a number of factors, including: (i) well-developed financial market; (ii) state-of-the-art international banking system; (iii) robust legal system; (iv) highly skilled workforce; and (v) openness to trade.

Table 5: Standard and Poor’s Foreign Currency Rating

According to the 2012 Global Competitiveness Index, Singapore remains the second-most competitive economy in the world after the United States.37 On the macroeconomic side, the country’s strong fiscal and current account surplus — among the world’s highest at about S$3 billion and S$70 billion, respectively — have acted as a cushion against the shocks of the recent financial crisis.38 Singapore’s market-based economy can count on a highly efficient labor market and world-class infrastructure, which is ranked second globally. The country’s public and private institutions are rated highly in promoting economic growth through constructive dialogue and cooperation.

Source: Standard & Poor’s, 2012.19

Singapore’s buoyant foreign direct investment (FDI) inflows are among the region’s highest both in absolute terms and as a percent of GDP. There are generally no restrictions on foreign ownership of businesses. The Government encourages foreign investment through a set of financial incentives in the form of grants and subsidies as well as through tax incentives such as accelerated depreciation, tax holidays, special deduction schemes and investment allowances (IAs).40 Singapore benefits highly from the contributions of developed countries such as, the Netherlands, the United States, Japan

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Country

Rating

China

AA-

Indonesia

BB+

Philippines

BB+

Singapore

AAA

Korea, Rep. of

A+

Vietnam

BB-

Figure 3: Global Competitiveness Index Stage of development Transition 1-2

1 Factor driven

2

Transition 2-3

Efficiency driven

3 Innovation driven

Institutions 7 Innovation

6

Infrastructure

5

Business sophistication

Macroeconomic environments

4 3 2

Health and primary education

1

Market size

Higher education and training

Technological readiness

Goods market efficiency

Financial market development Low market efficiency Singapore

Efficiency-driven economies

Source: World Economic Forum, 2012.37


Green Investment Climate Country Profile - Singapore

2002-2010

2010

As % of GDP

815.95

124.93

0.80

Indonesia

24.90

11.10

1.57

Malaysia

-31.06

-4.35

3.29

9.21

0.68

0.34

-74.50

-19.38

-1.46

67.21

18.90

12.31

38.46

7.10

6.83

Country China

Philippines Korea, Rep. of Singapore Vietnam Source: World Bank, 2010.

39

Figure 4: Corruption Perceptions Index 2011 129

112

100

75

43

in pp ili

Ph

Vi e

tn

ne do In

es

am

sia

a in Ch

Ko

re

a,

Re

p.

ap

or

of

e

5

ng

Singapore’s investment-friendly economy is boosted by the country’s extensive trade network. Eighteen regional and bilateral free trade agreements (FTAs) and 35 investment guarantee agreements have reduced or eliminated import tariffs in the country of destination. Such agreements have played an important role in enhancing Singapore’s ease of doing business, particularly in light of its export-oriented economy. The increase in the number of signed FTAs has been accompanied by changes in the country’s legal system, which is today regarded as highly efficient. Singapore ranks fifth in the world in transparency.21 The Government maintains a strong stance against corruption and toward the enforcement of intellectual property laws.

Table 6: FDI (net BoP, current US$)

Si

and the United Kingdom. Due to the efforts made by the country’s investment promotion agency EDB, FDI inflows largely target high value-added activities such as financial and business services.

Source: Transparency International, 2011.21

Despite a high level of coordination among the public and private sectors, the number of PPP initiatives is relatively low. Only eight projects were officially awarded since 2003. This can be attributed to the fact that Singapore does not require heavy investment in infrastructure. Singapore has developed a sports complex and an institute of education through the PPP route, based on a value-formoney screening process.41 The country’s business climate makes Singapore an attractive destination for high-technology investments and the Government is striving to make the clean-tech sector one of the main pillars of its economy. To achieve this goal, the Government has set aside S$700 million to enhance R&D capabilities growth in the clean technology sector.42 Singapore’s strengths in state-of-the-art manufacturing and engineering makes it an ideal destination to develop high-end clean technologies, such as solar PV.

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7. Concluding Remarks

A

s a small city-state with low RE potential, Singapore has been focusing on sustainable development by prioritizing EE across a number of different sectors. Notwithstanding one of the lowest levels of energy intensity in the region, the Government champions a comprehensive EE program targeting a 35 percent reduction in energy intensity from 2005 levels by 2030. It has also made unconditional and conditional pledges to reduce carbon emissions by 7 to 11 percent and 16 percent below 2020 BAU levels, respectively. While many of its neighboring countries have shown only mixed results in implementing EE programs, Singapore is on track to meet its energy intensity targets, having improved energy intensity by 17.2 percent from 2005 to 2011. Singapore has made EE a core priority for curbing greenhouse gas (GHG) emissions. Given the country’s limited natural resource endowment, the Government has been focusing its effort on switching from carbon-intensive fossil fuels to natural gas, which currently represents 80 percent of the country’s electricity generation sources. Although energy-intensive industries are one of the primary targets of the country’s EE program, the Government has also implemented programs to encourage efficiency among smaller energy consumers. As a result, significant energy savings have been achieved not only in the industrial and power sectors, but also in households, buildings and in transportation. The Government has provided a wide range of incentives that are aligned to address market barriers. For example, given Singapore’s urban character, the Government has established the GMIS-EB. The scheme provides cash incentives for upgrading and retrofitting EE equipment into existing buildings and co-funds up to 50 percent of the costs of installation. The Government has switched from voluntary to mandatory programs — such as with green labeling — whenever the public have expressed interest. Outreach and educational campaigns have raised public interest in support of the Government’s EE initiatives. A common feedback during the public consultations on climate change held in Singapore from September 2011 to January 2012 was that Singaporeans are well aware of the benefits of EE. It appears that Singapore’s pervasive EE programs have triggered behavioral changes, making businesses and consumers adopt a proactive approach towards energy conservation.

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Green Investment Climate Country Profile - Singapore

8. Summary of Policy Instruments Below is a summary table of renewable energy, energy efficiency and market-based instruments for seven selected East Asia and Pacific countries. China

Korea, Rep. of

Indonesia

Philippines

Tax Incentives

Carbon Tax

Capital Subsidy/Grants - RE

Policy Distortions

Feed-in Tariff

Domestic

Foreign

 

Renewable Energy

 

Concessional Financing

 

Partial Risk Guarantee Renewable Portfolio Standard

Energy Efficiency & Green Tech

 

Market Based

 

 

Singapore

Vietnam

Malaysia

● ●

● ●

 

Tax Incentives

Capital subsidy/Grants - EE

Domestic

Foreign

Concessional Financing

Partial Risk Guarantee

Green Labeling

Awareness Campaigns

 

 

CDM

Carbon market

Cap-and-trade scheme

● Full implementation ● Limited scale and/or early stage implementation ● Existing barriers

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9. Annex Table of Contents 9.1 Policies, Objectives, and Targets...................................................................................................... 17 9.2 Financial and Economic Instruments............................................................................................... 21 9.3 Programs and Institutions................................................................................................................ 27 9.4 Regulatory Environment.................................................................................................................. 34 9.5 Supplementary Materials................................................................................................................. 37

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Green Investment Climate Country Profile - Singapore

9.1 Policies, Objectives and Targets Overarching Policiesv • Singapore National Climate Change Strategy (NCCS) • Singapore Green Plan (SGP), National Energy Policy Report and Sustainable Singapore Blueprint 2009

Singapore National Climate Change Strategy (NCCS), both NCCS 2008 and NCCS 2012, made RE development a priority.43 These strategic plans identified three areas of focus for the country’s mitigation efforts: (i) increasing EE; (ii) using less carbon intensive fuels; and (iii) increasing “carbon sinks” such as, forests. On June 14, 2012, the Government released the NCCS 2012. The document was developed by the National Climate Change Secretariat in collaboration with other relevant public agencies and with input from the private sector. It outlines Singapore’s strategy and plans to address climate change and build a low-carbon economy. NCCS 2012 reiterates that the country’s renewable resources and their potential are both limited and EE remains the Government’s core strategy to reduce GHG emission. NCCS 2012 also commits to achieving an economy-wide reduction in energy intensity of 35 percent by 2030 from 2005 levels. This is a step forward from the level of commitment in NCCS 2008, which only supported the Asia-Pacific Economic Cooperation (APEC) — with a goal of a reduction in energy intensity of at least 25 percent by 2030. NCCS 2012 also announced that the Energy Conservation Act (to come into force in 2013) will mandate large users of energy to implement better energy management practices.vi The document also confirms that Singapore intends to become a regional hub for clean tech and low-carbon solutions. NCCS 2012 explains the overall governmental approach, including initiatives to help the island become a climate resilient city that is well-positioned for green growth. Its highlights include plans for a new Energy Conservation Act and a Carbon Emissions-based Vehicle Scheme (CEVS) by 2013, and a S$100 million scheme to assist retrofitting buildings with solar panels.

Singapore Green Plan (SGP), National Energy Policy Report and Sustainable Singapore Blueprint 2009 strengthen national sustainable development path. Although the country’s environmental efforts started in the 1960s, the plan was formally launched in 1992 at the United Nations Conference on Environment and Development (or Earth Summit). The Plan (originally issued in 1992 and updated on several occasions) was amended in 2012 and presented at the World Summit on Sustainable Development at Johannesburg in the same year.44 Formulated with input from the People, Private and Public (3P) sectors, the Plan highlighted the country’s commitment to ensuring its environmental sustainability and its targets

v For more details see Supplementary Materials 9.5. vi Energy Conservation Act covers energy users consuming more than 15 GW equivalent or 54 TJ of energy per year.

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for 2012. There are six focus areas under the SGP 2012: (i) clean air and climate change; (ii) water; (iii) waste management; (iv) public health; (v) conserving nature; and (vi) international environmental relations. In 2007, an inter-agency Energy Policy Group led by the MOTI released a National Energy Policy Report, which outlined a holistic national energy policy framework. Amongst six strategies identified in the report, EE was a key focus area that could achieve all three objectives of economic competitiveness, energy security and environmental sustainability.45 The IMCSD was set up in January 2008 to develop an overall sustainable development strategy for Singapore. In April 2009, IMCSD launched the Sustainable Singapore Blueprint, which set out the national framework, strategies and initiatives to achieve both economic growth and a quality living environment. To achieve this vision, the Sustainable Singapore Blueprint established four priorities including increasing resource efficiency, improving the environment, building capacities, and fostering community action. The blueprint has a 20-year time-frame. It has identified intermediate goals for 2020 and key long-term goals for 2030. The blueprint’s goal for the energy sector is to reduce energy intensity (as percentage of GDP per unit of energy used) by 20 percent and 35 percent from 2005 levels by 2020 and 2030, respectively.

Renewable Energy Policies • Government Strategy on Renewable Energy (GSRE)

Government Strategy on Renewable Energy (GSRE) considers clean and RE industry as a strategic growth area. While the GSRE does not entail tangible or specific targets, the Economic Strategies Committee Report 2010 recommends a target of five percent of peak electricity demand be supplied from RE sources by 2020.46 The Government has repeatedly stressed that Singapore is “alternative energy disadvantaged”, as not all renewable resources are available.47 Singapore will likely continue relying on fossil fuels to meet its energy needs. In 2010, the fuel mix consisted of about 77.2 percent natural gas, 18.7 percent petroleum products and less than 4.1 percent other from other sources. The NCCS 2008 states: “Singapore is a city-state with limited natural resources. Due to our geographical constraints, largescale adoption of alternative energy beyond oil and gas is unlikely. We lack the natural endowments to tap hydropower or geothermal energy. For wind, given the current technology, there is limited scope due to low wind speeds as well. Besides waste-to-energy technology, forms of RE that are more applicable to Singapore include solar energy and biofuels. However, these sources of RE are not yet cost-competitive with conventional fossil fuels. Hence, we are reliant on fossil fuels to meet our energy needs at present.”48

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Nonetheless, Singapore is investing in energy R&D and test-bedding to build its capabilities in clean energy and encourage the growth of a vibrant clean energy sector. Singapore has embarked on several solar PV test-beds such as, installing solar PV panels on the rooftops of high-rise public housing developments to facilitate future adoption of solar energy when it becomes cost-competitive. Its research centers for clean energy, such as the Solar Energy Research Institute of Singapore (SERIS), Energy Research Institute at Nanyang Technological University (ERI@N) and the Agency for Science, Technology and Research’s (A*STAR) Experimental Power Grid Centre (EPGC), work closely with industry partners to develop critical R&D capabilities. The most active area in terms of RE development involves R&D and test-bedding of solar technology to improve its efficiency and lower its costs for larger scale adoption. In addition, Singapore serves as a “living laboratory” for companies to develop, test-bed and commercialize innovative energy solutions. Leading RE companies, such as REC, MEMC, Trina Solar, Vestas and Games have based their regional headquarters, manufacturing and R&D operations in Singapore.

Energy Efficiency Policies • Energy Efficiency as a Core Strategy • Green Building Master Plans • Energy Conservation Act

Energy Efficiency as a Core Strategy emphasizes R&D, green buildings, water and environmental technologies, green transport, waste minimization, environmental initiatives, the Clean Development Mechanism (CDM), and green IT — areas with real potential to make Singapore greener. Given the country’s limited renewable resources and the need to import almost all its energy, the Government has emphasized the need for EE as a cost effective means to improve the country’s economic competitiveness, energy security and environmental sustainability, while reducing business costs, pollution and CO2 emissions.

Green Building Master Plan initially launched in 2006, focused on the greening of new buildings. The 2nd Green Building Master Plan, launched in 2009, gave greater emphasis to the greening of existing buildings. It set out specific initiatives in six key strategic thrusts to achieve the national target of greening at least 80 percent of the buildings in Singapore by 2030. By March 2012, there were more than 1,000 green building projects, equal to a gross floor area of about 30m2 million, or 14 percent of the total gross floor area in Singapore. Figure 5: Second Green Building Master Plan’s Thrusts 6 Strategic Funds Strategic Thrust 1

Strategic Thrust 2

Strategic Thrust 3

Strategic Thrust 4

Strategic Thrust 5

Strategic Thrust 6

Public Sector Taking the Lead

Spurring the Private Sector

Furthering the Development of Green Building Technology

Building Industry Capabilities Through Training

Profiling Singapore and Raising Awareness

Imposing Minimum Standards

Source: Building and Construction Authority, 2009.49 The World Bank – AusAID

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Energy Conservation Act introduces mandatory energy management practices that will take effect from 2013 for large energy users in the industry and transport sectors consuming more than 15 GWh of energy each year. These mandatory practices include: (i) appointment of an energy manager; (ii) monitoring and reporting of energy use and GHG emissions; and (iii) submission of EE improvement plans. EE-related legislation across various sectors — such as the Mandatory Energy Labelling Scheme and the MEPS for household appliances, as well as the Fuel Economy Labelling Scheme for passenger cars and light goods vehicles under the Environmental Protection and Management Act — will be consolidated under the Energy Conservation Act. The legislation is jointly administered by the MEWR and the MOTI.

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9.2 Financial and Economic Instruments Fiscal Incentives and Direct Subsidiesvii • Investment Allowance (IA) Schemes for Energy Efficiency Projects • One-Year Accelerated Depreciation Allowance for Energy Efficient Equipment and Technology (ADAS) • Tax Incentive on Green Vehicles • Tax Incentives for Developing Carbon Trading Capability

Investment Allowance (IA) Schemes for Energy Efficiency Projects targets energy-intensive industries. EE projects were added to the qualifying list of activities under the IA Scheme of the Economic Expansion Incentives Act in November 2010. This tax incentive helps operators lower their cost of capital expenditure incurred in implementing EE retrofits. In addition to the normal 100 percent capital allowance, companies will be granted an IA between 30 to 50 percent of the fixed capital expenditure incurred on retrofitting their facility for EE improvements. The fixed capital expenditure must be incurred within the qualifying period of three years to be eligible for the IA. The IA that has not been utilized can be carried forward indefinitely to offset against the chargeable income in future years.

One-Year Accelerated Depreciation Allowance for Energy Efficient Equipment and Technology (ADAS) encourages companies to invest in energy saving and energy efficient equipment, including solar heating or cooling and solar energy collection systems. All costs directly related to an EE project (except consultancy work), falling into one of these categories are eligible for accelerated tax allowance in one year, rather than three.

Tax Incentive on Green Vehicles pegs road tax for electric, petrol-electric hybrid, compressed natural gas (CNG) and bi-fuel buses and commercial vehicles to that of petrol equivalents, which is 20 percent lower than their diesel equivalents.

Tax Incentives for Developing Carbon Trading Capability encourage the development of Singapore as a trading hub. Companies with carbon trading activities can qualify for a 5 or 10 percent concessionary tax rate under Singapore’s Global Trader Program (GTP).

vii It is noteworthy that despite or, possibly because of Singapore’s limited energy options, the use of fossil fuels is not subsidized and is in fact subject to duties. Singapore Customs imposes petrol excise duty set at a rate of S$0.41per liter for above 90 and below 97 octane petrol, and S$0.44 per liter for petrol rated 97 octane and above. While diesel is not subject to excise duty in Singapore, a special lump-sum road tax is imposed on diesel private vehicles. An excise duty of S$0.20 per kg on CNG has also been introduced in 1 January 2012.

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Financial Measures • Green Mark Incentive Scheme for Existing Buildings (GMIS-EB) • Green Mark Gross Floor Area (GM-GFA) Incentive Scheme • Pilot Building Retrofit Energy Efficiency Financing (BREEF) Scheme • Green Mark Incentive Scheme-Design Prototype (GMIS-DP) • Design for Efficiency (DfE) Scheme • Grant for Energy Efficient Technologies (GREET) • Energy Efficiency Improvement Assistance Scheme (EASe) • Energy Efficiency Financing Pilot • Green Vehicle Rebate Scheme (GVRS) and Carbon Emissions-based Vehicle Scheme (CEVS) • Clean Development Mechanism (CDM) Documentation Grant • Innovation for Environmental Sustainability (IES) • 3R Fund • Skyrise Greenery Incentive

Green Mark Incentive Scheme for Existing Buildings (GMIS-EB) was established in 2009. The BCA allocated S$100 million under the GMIS-EB to help building owners offset part of the retrofitting costs to improve the EE of existing buildings. The GMIS-EB became effective from April 2009 and was enhanced in July 2012. The scheme will expire in April 2014, or when the GMIS-EB fund is fully disbursed, whichever is earlier. The GMIS-EB provides a cash incentive for upgrading and retrofitting projects, co-funding up to 50 percent (capped at S$3 million) of the costs of equipment installed to improve the EE of existing buildings. In addition, the GMIS-EB also includes a ‘health check’ scheme — an energy audit which determines the efficiency of the air-conditioning plants. BCA will co-fund 50 percent of the cost for conducting this health check audit and the remaining 50 percent is borne by the building owner. To qualify for the scheme, eligible buildings undergoing upgrading and retrofitting must achieve at least BCA Green Mark Gold rating and an air-conditioning system efficiency of 0.7 kW/RT or better. The amount of co-funding for building owners will vary depending on the Green Mark rating and on the achieved air-conditioning system efficiency. The amount of co-funding rate and cap amount are shown in the table below. Table 7: Detail of the Cash Incentive for Upgrading and Retrofitting Scheme Aircon System Efficiency (kW/RT)

Co-funding Rate (on the cost of supply and installation of energy efficient equipment and professional services)

Cap on Total Incentive Sum

Gold or better

0.70

35%

S$1,500,000

Gold Plus or better

0.65

40%

S$2,250,000

Platinum

0.60

50%

S$3,000,000

Green Mark Requirement (Based on GM ENRB Version 3)

+

Source: Building and Construction Authority, 2012.

50

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Green Mark Gross Floor Area (GM-GFA) Incentive Scheme was established in 2009. The BCA and the Urban Redevelopment Authority (URA) have introduced a set of gross floor area incentives to encourage the private sector to develop buildings that attain higher tier Green Mark ratings (i.e. Green Mark Platinum or Green Mark Gold Plus). For attaining Green Mark Platinum or Gold Plus, URA will grant additional floor area over the Master Plan Gross Plot Ratio control. The GM-GFA Incentive Scheme will apply to all new private developments, redevelopments and reconstruction developments.

Pilot Building Retrofit Energy Efficiency Financing (BREEF) Scheme was introduced in 2011. The pilot BREEF scheme provides credit facilities to building owners, Management Corporation Strata Title councils and ESCOs to carry out EE retrofits under an Energy Performance Contract. The BCA will share default risks with participating financial institutions (PFI) to provide funding of up to S$5 million each, with maximum tenure of eight years. Since its launch, four PFIs, Standard Chartered Bank, United Overseas Bank, Orix Leasing and IFS Capital have joined the scheme. Application for the pilot scheme runs from 1 October 2011 to 30 September 2013 or until when 15 loans are disbursed.

Green Mark Incentive Scheme–Design Prototype (GMIS-DP) launched in 2010, for a period of four years, the S$5 million GMIS-DP aims to encourage developers and building owners to strive for greater EE in buildings by placing more emphasis at the design stage. The scheme provides funding support for the engagement of environmentally sustainable design consultants to conduct collaborative design workshops and to help in simulation studies to achieve an optimal design for green buildings.

Design for Efficiency (DfE) Scheme targets industries and aims to integrate energy and resource efficiency into the design stage of manufacturing industrial facilities. DfE funds up to 80 percent of the costs of consultancy and related costs of design workshops with a limit of S$600,000.

Grant for Energy Efficient Technologies (GREET) program was launched by NEA in November 2008 to encourage owners of existing or proposed industrial facilities to invest more in EE by providing a grant to offset part of the investment cost.51 Co-administered by NEA and the EDB, GREET co-funds up to 20 percent of the qualifying investment cost such as, manpower costs, energy efficient equipment and materials as well as professional services. The grant cap per project was raised from S$2 million to S$4 million in May 2011, with S$22.8 million set aside for the following two years. By the end of March 2011, about S$10.3 million had been approved for 16 GREET applications. These projects were estimated to have resulted in a total lifetime energy savings of S$58.5 million.

Energy Efficiency Improvement Assistance Scheme (EASe) is a co-funding scheme administered by NEA to provide an incentive for companies in the manufacturing and building sectors to carry out detailed studies on their energy consumption, and to identify potential areas for EE improvement. Under EASe, funding of up to 50 percent of the cost for such appraisals‚ subject to a

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cap of S$200,000 over a five-year period‚ may be made available to any Singapore-registered company with buildings or manufacturing facilities. Since its inception in April 2005, the scheme has received a positive response, with 205 applications approved as of 2010. The approved applicants came from 64 manufacturing plants and 141 buildings. A total of S$5.87 million were approved for the 205 energy studies. The EE arising from the studies would benefit the companies in reduction of CO2 emissions.

Energy Efficiency Financing Pilot encourages the financing of EE projects in manufacturing companies by third parties such as, financial institutions or energy service companies. The pilot aims to address the market barrier of high upfront cost of EE investments and catalyze more private financing of EE.

Green Vehicle Rebate Scheme (GVRS) and Carbon Emissions-based Vehicle Scheme (CEVS) first introduced in 2001, is an inter-agency effort to encourage the use of green vehicles and to close the cost gap between green and conventional vehicles. Under the GVRS, owners of electric, hybrid and CNG vehicles are eligible for the following rebates: ■■

Equivalent of 40 percent of the vehicle’s open market value (OMV) for electric, petrol-electric hybrid, CNG and Bi-fuel (CNG/Petrol) passenger cars;

■■

Equivalent of five percent of the vehicle’s OMV for electric, petrol-electric hybrid, CNG and Bi-fuel (CNG/Petrol) buses and commercial vehicles; and

■■

Equivalent of 10 percent of the vehicle’s OMV for electric motorcycles.viii

The Carbon Emissions-based Vehicle Scheme (CEVS) will replace the GVRS scheme. It is a new scheme based on carbon efficiency, rather than a technology platform. The CEVS will apply from January 1, 2013 to all new cars, taxis and newly imported used cars that are registered. Cars with low-carbon emissions of less than or equal to 160g carbon emissions per kilometer (CO2/km), will qualify for rebates of between S$5,000 and S$20,000. The rebates will be given as an offset against the vehicle’s additional registration fee payable. Conversely, a registration surcharge is imposed on cars with high carbon emissions equal to or more than 211g CO2/km.

Clean Development Mechanism (CDM) Documentation Grant is aimed at encouraging companies to develop CDM projects in Singapore. The grant will fund up to 50 percent of the cost of engaging a carbon consultant to develop a new methodology and Project Design Document, or up to 30 percent of the cost in the case of an existing approved methodology. The amount of funding to any CDM project is capped at S$100,000. To qualify, the CDM project developer must be registered in Singapore and the proposed CDM project must be located in Singapore.

viii OMV is assessed by the Singapore Customs based on the price actually paid or payable for the goods when sold for export to the country of importation. This price includes purchase price, freight, insurance and all other charges incidental to the sale and delivery of the car to Singapore.

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Innovation for Environmental Sustainability (IES) fund is managed by NEA and helps companies to implement environmental protection and public health related projects. The proposed project should be at the applied research and test-bedding stage of technology development, and should help Singapore meet its goal of environmental sustainability. The IES Fund provides funding to cover some of the qualifying cost of the project, up to a maximum of S$2 million and up to a maximum of three years.

3R Fund is a co-funding scheme to encourage organizations to implement waste minimization and recycling projects. Funding is provided for up to 80 percent of the qualifying costs and subject to a cap of S$1 million per project, and depends on the quantity and type of waste reduced or recycled.

Skyrise Greenery Incentive organized by NParks encourages the installation of skyrise greenery on existing residential and non-residential buildings in Singapore. Funding is provided for up to 50 percent of the cost of installation of green roofs and vertical greenery.

Market-based Mechanismsix • Clean Development Mechanism (CDM) • Carbon Pricing and Trading

Clean Development Mechanism (CDM), to date there are two registered CDM projects in Singapore — a thermal energy recovery project registered in November 2008, and a sewage dehydration and incineration project registered in September 2010. NEA is Singapore’s Designated National Authority (DNA) for CDM projects. As the DNA, NEA’s role is to ensure that CDM projects implemented locally meet Singapore’s sustainable development criteria. The sustainable development criteria for Singapore are as follows: Table 8: Singapore’s Sustainable Development Criteria Environmental Sustainability

Project meets NEA’s Environmental Protection requirements, standards and regulations. Project produces real and measurable reductions in GHG emissions.

Economic Sustainability

Project utilizes more efficient and/or environment-friendly technology than common industrial practice.

Social Sustainability

Project helps to improve quality of life by creating opportunities for jobs, job enhancement, etc.

Source: Ministry of Environment and Water Resources of Singapore, 2009.52

Carbon Pricing and Trading is a second market-based mechanism in Singapore. The current legislation in Singapore does not refer to any broad based carbon pricing mechanism. However, Singapore intends to become the premier carbon trading hub in Asia. Singapore has an advantage in the region as it has a strong background in financial services, is in a favorable time-zone for trading between Europe and Asia and has an English law background, thus making it an ideal forum for ix For more details see Supplementary Materials 9.5.

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contract negotiation and arbitration. The EDB and IE Singapore are engaging carbon trading companies to establish a presence in Singapore. There are now approximately 30 carbon companies in Singapore, of which several have major operations. Their activities include: (i) low-carbon project development; (ii) consulting and verification services for CDM registration; (iii) carbon footprinting; and (iv) project financing and legal services. The trading of carbon credits is currently supported under the GTP, which is administered by IE Singapore. The GTP also covers trading in commodities such as oil, agri-commodities, metals and minerals. Companies under the GTP can receive a concessionary tax rate of 10 percent or less for their qualifying trading income. Asia Carbon Exchange is a Singapore based CDM online trading firm. The exchange trades both CERs and VERs and since November 2005 has reportedly traded a volume of 4.6 million credits with a liquidity of S$72 million for project owners.

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9.3 Programs and Institutions Programs • Energy National Innovation Challenge • Energy Innovation Program Office (EIPO) • Research Centers • Test-Bedding • Energy Efficient Singapore (E2PO) • Energy Services Companies (ESCOs) Accreditation Scheme • Singapore Certified Energy Manager (SCEM) • Energy Efficiency National Partnership (EENP) • Environment Technology Research Program (ETRP)

Energy National Innovation Challenge program aims to develop cost-effective energy solutions for national deployment within 20 years. In 2010, the NRF identified “Energy Resilience for Sustainable Growth” as a major R&D thrust under the National Innovation Challenge. An S$300 million funding has been allocated to the Energy NIC program. The program is run by the Energy and Environment Research Directorate of NRF.

Energy Innovation Program Office (EIPO) established in 2007. At that time, the Research, Innovation and Enterprise Council, chaired by the Prime Minister, identified the clean energy industry as a key growth industry for Singapore. The NRF provided S$170 million in research funding. The EIPO, formerly known as the CEPO, is an inter-agency group co-chaired by the EDB and EMA. This inter-agency platform consists of agencies such as, the BCA and the NEA. The EIPO manages various initiatives such as the Clean Energy Research Program, graduate scholarships, research centres, and a Quickstart program to nurture local clean energy start-ups. In 2011, an additional S$195 million was made available to EIPO through the NRF, to catalyze the growth of the industry by strengthening research capabilities and accelerating commercialisation.53 Singapore is on target to achieve S$1.7 billion as value-added to its economy and 7,000 new jobs from the green initiatives by 2015.54 The key program managed by EIPO is the EIRP. The EIRP is a competitive funding initiative that supports interdisciplinary and commercially-relevant R&D efforts.

Research Centers in focus include: ■■

SERIS launched at the National University of Singapore in 2008. This institute conducts worldclass industry-oriented R&D and trains specialist manpower for the solar energy sector. It is also collaborating with leading solar companies such as REC and Trina Solar.

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■■

Energy Research Institute at the Nanyang Technological University (ERI@N) started in 2009. ERI@N develops industry-oriented innovations and train specialists in clean energy, focusing on areas such as wind and marine renewables, green buildings, e-mobility, energy storage and fuel cells. It is also collaborating with leading wind energy companies such as, Vestas.

■■

Experimental Power Grid Centre (EPGC) under the A*STAR is a S$38 million facility on Jurong Island. EPGC allows researchers to collaborate with companies to develop innovative smart grid and distributed generation technologies. It features a one MW grid, which is the world’s largest pilot smart grid facility.

Test-Bedding initiative includes developing, testing, and validating clean energy technologies in real-world settings. With the growth of R&D activities, Singapore has also developed a suite of supporting services and opportunities for firms and researchers. This process, known as test-bedding, facilitates the commercialization process for new technologies. The country is also positioning itself as a “living laboratory” to test, pilot, and commercialize innovative solutions for Asian and global markets. Several test-bedding projects are already underway: ■■

CleanTech Park is being developed by JTC Corporation as the first eco-business park in the region. It will cluster clean technology companies and serve as a platform for test-bedding and developing prototypes of clean technologies and sustainable urban solutions. The 50 ha park will be developed in three phases over 20 years. When fully completed, it will house a working population of 20,000 green-collar workers.

■■

Intelligent Energy System Pilot is a smart grid project led by the EMA in partnership with Singapore Power to develop and test new smart grid technologies and solutions. The development of the enabling infrastructure made up of “smart meters” and wireless communications networks was completed in Phase 1. Phase 2, which will run from 2012 to 2013, rides on the enabling infrastructure to test different applications for electricity consumers. This pilot will lay the foundation for an energy system in Singapore that will improve the country’s overall EE and resilience.

■■

Treelodge@Punggol is a live setting to test new urban solutions and create a green living environment. Smart meters are also being tested in selected residential estates in Punggol. One test-bed involving PPP between Japanese electronics firm Panasonic and three agencies — EDB, EMA and the Housing and Development Board (HDB) — aims to integrate solar technology, fuel-cell batteries and a Home Energy Management System (HEMS) in an existing public housing block. Panasonic will install solar panels and batteries for energy storage. The system will supply electricity for lifts, water pumps and lighting in the common areas. With the HEMS, participating residents can monitor their in-house electricity usage. Marina Bay and Jurong Lake District will also offer opportunities for test-bedding in a mixed use setting.

■■

Pulau Ubin Micro-Grid Test-bed, EMA has embarked on a micro-grid test-bed at the jetty area of Pulau Ubin, an island north-east of Singapore. This test-bed aims to assess the reliability of electricity supply from a micro-grid infrastructure using intermittent RE supply. A Singapore-

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based consortium comprising Daily Life Renewable Energy Pte, Ltd. and OKH Holdings Pte, Ltd was appointed to design, build, own and operate the micro-grid infrastructure. ■■

Zero Energy Building is a 4,500m2 BCA flagship project under the Green Building Master Plan. The building generates its own electricity from solar panels and reduces its energy needs through the use of green building technology and design. It now serves as a test-bedding facility for the integration of green building technology into existing buildings.

■■

EV Test-Bed, the EMA and the Land Transport Authority (LTA) co-lead a multi-agency EV Taskforce to test-bed EVs and assess the feasibility of adopting EVs in Singapore. There are four EV models currently available under the EV test-bed: Daimler smart electric drive (ED), Mitsubishi i-MiEV, Nissan Leaf and Renault Fluence between Z. E. and Robert Bosch was selected as the Charging Service Provider to provide nationwide charging infrastructure for this test-bed. The test-bed will operate until the end of 2013. As of February 2013, there are 69 EVs on the roads, 44 normal charging stations and 3 quick charging stations.

■■

Solar PV Systems have been rolled out in HDB public housing estates across Singapore. There are on-going trials in 30 precincts, and this is the largest solar test-bed in Singapore. The results will allow HDB to better factor solar requirements into the design of new flats and familiarise town councils with the technical and maintenance aspects of solar installations. The test-bedding program started in 2009 and will be completed by 2015. HDB implemented the first solar leasing project in Singapore when it awarded a tender in September 2011 to a private solar system developer to lease two Megawatt Peak (MWp) PV systems for 45 HDB residential blocks in Punggol.55 This will be further extended to another 80 blocks in Punggol over the next two years, adding another 3MWp of solar PV systems.

■■

Floating PV Pilot Project at Tengeh Reservoir announced in November 2011 by the Singapore National Water Agency and EDB is a first in the region. The project will assess the feasibility of installing floating solar PV systems on water — as an alternative to rooftops —and examine the cost effectiveness and expected improvement in performance of the solar modules, due to the expected cooling effect from the water. The S$11 million pilot is estimated to have a system size of 2 MW.

Energy Efficient Singapore (E2PO) initiative was set up in 2007 to jointly promote and facilitate the adoption of EE in Singapore. The E2PO is a multi-agency committee led by NEA and EMA. The various agency members implement EE initiatives in their respective sectors to support R&D, develop capabilities, raise awareness and promote adoption in relation to EE. It has identified the following four strategic areas to improve EE in Singapore: (i) stimulate demand for EE through regulation and standards, incentives and open information; (ii) develop human and institutional capabilities by encouraging local knowledge base and expertise in energy management and collaborating with Institutes of Higher Learning (IHLs); (iii) promote emerging energy efficient technologies and innovation through supporting R&D, innovations and business process improvements; and (iv) promote EE internationally through various platforms such as Singapore International Energy Week, APEC and East Asia Summit.

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In April 2012, E2PO announced a year-long collaboration with Siemens Pte, Ltd to conduct a firstof-its-kind study in Singapore into the energy use patterns across different sectors such as the residential, commercial, transport and info-communication sectors within a town. Tampines will be the representative town. Figure 6: Members of the E2PO

Source: Energy Efficient Singapore, 2012.56

Energy Services Companies (ESCOs) Accreditation Scheme establishes a nationally recognized Register of Accredited ESCOs. This scheme is jointly administered by the NEA and BCA. ESCOs help companies identify and realize opportunities to improve EE. Their trained professionals play an important role in supporting companies that do not possess the internal capabilities to achieve these efficiency gains by themselves.

Singapore Certified Energy Manager (SCEM) program was initiated to help engineering professionals develop the technical skills and competencies needed to lead energy services and management work in their organizations. The SCEM program is jointly administered by the NEA and the Institution of Engineers Singapore. To encourage professionals to upgrade their skills, NEA offers a training grant that co-funds about 80 percent of the cost of the SCEM training course.

Energy Efficiency National Partnership (EENP) was launched by the NEA, the EMA, and the EDB in April 2010. EENP program is a voluntary partnership program that supports the EE efforts

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of companies, thereby enhancing their long-term business competitiveness and reducing their carbon emissions. The EENP program consists of three components: (i) promotion of energy management systems; (ii) establishment of a network which provides opportunities for the industry to learn about EE ideas, technologies, practices, standards and case studies; and (iii) creation of a national recognition scheme (known as the EENP Awards) that recognizes the efforts and achievements of corporations and teams for excellent energy management practices and efficiency improvements.

Environment Technology Research Program (ETRP) builds up technological competencies and supports companies and researchers in waste management. The ETRP awards grant funding to R&D projects on waste management such as energy recovery, materials recovery and special waste treatment, and is open to researchers from IHLs, public sector agencies, for-profit and not-for-profit research organizations, and Singapore-registered companies. The maximum funding for each project is up to S$2 million and for a maximum of 3 years.

Institutions • National Climate Change Secretariat

National Climate Change Secretariat was set up as a dedicated agency under the Prime Minister’s Office to coordinate Singapore’s domestic and international policies, plans and actions on climate change. An Inter-Ministerial Committee on Climate Change (IMCCC) was set up in late 2007 to oversee interagency coordination on climate change. The IMCCC is supported by an Executive Committee (Exco) consisting of the Permanent Secretaries of these Ministries. The IMCCC Exco oversees the work of three working groups. ■■

The International Negotiations Working Group, which establishes the country’s strategy in the international climate change negotiations under the United Nations Framework Convention on Climate Change;

■■

The Long Term Emissions and Mitigation Working Group, which studies how Singapore can stabilize its long term emissions; and

■■

The Resilience Working Group, which studies the country’s vulnerability to the adverse effects of climate change and develops long-term plans to ensure that Singapore is able to cope with climate change.

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Figure 7: Climate Change Organization Structure Inter-Ministerial Committee on Climate Change (IMCCC) Chaired by Mr. Teo Chee Hean Deputy Prime Minister, Coordinating Minister for National Security and Minister for Home Affairs

Chaired by Permanent Secretary (National Climate Change) Members: PS (Environment and Water Resources), PS (Finance and Performance), PS (Foreign Affairs), PS (National Development), PS (National Research and Development), PS (Trade and Industry) and PS (Transport)

International Negotiations Working Group (INWG)

Chaired by PS (National Climate Change) and PS (Trade and Industry)

Chaired by PS (Foreign Affairs)

Resilience Working Group (RWG) Chaired by PS (National Development) and PS (Environment and Water Resources)

Source: National Climate Change Secretariat of Singapore, 2012.57

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Mr. Tharman Shanmugaratnam Deputy Prime Minister, Minister for Finance and Minister for Manpower Mr. Lim Hing Kiang Minister for Trade and Industry

IMCCC Executive Committee

Long Term Emissions and Mitigation Working Group (LWG)

IMCCC Members

Mr. Khaw Boon Wan Minister for National Development Dr. Vivian Balakrishnan Minister for the Environment and Water Resources Mr. K Shanmugam Minister for Foreign Affairs and Minister for Law Mr. Lui Tuck Yew Minister for Transport and Second Minister for Foreign Affairs


Green Investment Climate Country Profile - Singapore

Figure 8: Related Government Ministries and Statutory Boards

EIPO is an inter-agency platform, but led by EMA and EDB. Land Transport Authority (LTA) is a statutory board under MOT. All statutory boards report to a ministry. EDB, IE Singapore, JTC are statutory boards under MTI. Source: Authors, 2012.x

x Authors compilation based on the data gathered from various government agencies of Singapore.

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9.4 Regulatory Environment Procedures and Mechanisms • Building and Construction Authority (BCA) Green Mark Scheme • Legislation on Environmental Sustainability for Buildings • Minimum Energy Performance Standards (MEPS) • Mandatory Energy Labeling

Building and Construction Authority (BCA) Green Mark Scheme was launched in 2005 as an initiative to drive Singapore’s construction industry towards more environment-friendly buildings. It is intended to promote sustainability in the “built environment” and raise environmental awareness among developers, designers and builders when they conceptualize, design, and construct projects. “Built environment” refers to buildings, structures and infrastructure that provide the setting for the community’s activities.

Legislation on Environmental Sustainability for Buildings outlines specific energy consumption standards for the building sector. From the second half of 2013, building owners will have to fulfill three requirements under the Building Control Act: ■■

Achieve minimum Green Mark standard for existing buildings when a cooling system is installed or retrofitted;

■■

Carry out three yearly energy audit on building cooling systems; and

■■

Submit building information and energy consumption data annually.

Phase one of the new legislative requirement for achieving minimum Green Mark standard for existing buildings will focus on hotels, retail and office buildings with a minimum gross floor area of 15,000m2, when they install or replace a chiller system. The building owner will be required to review the state of environmental sustainability of the building holistically, including overall building EE, water efficiency and indoor air quality to meet the minimum Green Mark standard. If necessary, the owner will also need to make other improvements such as improving the overall cooling system, lighting and lift equipment. In 2008, legislation was passed, requiring new buildings with GFA of more than 2,000m2 to achieve a Green Mark certified rating via the Building Control (Environmental Sustainability) Regulations. Higher Green Mark standards (i.e. Green Mark Platinum or Green Mark Gold Plus) will be set as conditions for all new projects developed in selected strategic growth areas from 2010. These new strategic growth areas include the Marina Bay and Downtown Core, Jurong Gateway in Jurong Lake District, Kallang Riverside and Paya Lebar Central. New developments in the designated areas

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will have to achieve either Green Mark Platinum or Gold Plus rating. This initiative will also tie in with URA’s objective to make these growth areas more sustainable. Together with the current legislation for new buildings, the new regulatory measures for existing buildings will contribute towards improving the EE of buildings and meeting Singapore’s target of greening 80 percent of the buildings by 2030.

Minimum Energy Performance Standards (MEPS) were introduced in September 2011 for household air-conditioners and refrigerators. The MEPS requirements are based on the idea that lifecycle cost for consumers in owning appliances and choice of models should be minimized without overly constraining the availability. Since MEPS were legislated, almost 70 percent of air-conditioner models and 90 percent of refrigerator models on offer are 3- to 4-tick models. In 2011, about 80 percent of purchases of household air-conditioners and 85 percent of refrigerators were from the top two highest efficiency categories. In response to MEPS, manufacturers and suppliers brought in a wide variety of energy-efficient models and retired less efficient models. The share of energy-efficient refrigerator models registered with NEA increased from 46 percent in 2008 to 79 percent in 2011 and the share of energy efficient air conditioner models increased from 30 percent in 2008 to 57 percent in 2011. In 2013, MEPS for household air-conditioners and refrigerators will be tightened. In 2014, MEPS will be extended to cover general lighting.

Mandatory Energy Labeling is enforced under the Environmental Protection and Management Act. Since January 2008, registered goods such as household air-conditioners and refrigerators must carry energy labels under the Environmental Protection and Management Act . This requirement was extended to clothes dryers starting from April 1, 2009. Similarly, the Fuel Economy Labeling Scheme was introduced to include passenger cars and light-goods vehicles as registered goods from April 1, 2009 under the mandatory Environmental Protection and Management Act . Registered suppliers of motor vehicles must affix a FEL on the units that they supply in Singapore. From July 1, 2012, the LTA has assumed the administration of FELS from NEA under the Energy Conservation Act.

Regulatory Agencies • National Environment Agency (NEA) • Energy Market Authority (EMA) • Building and Construction Authority (BCA) • Land Transport Authority (LTA)

National Environment Agency (NEA) was formed in 2002 as a statutory board under the MEWR. It aims to protect air, land and water resources in Singapore as well as ensure high standards of public health through providing environmental and meteorological services and promoting awareness and ownership among the 3P sectors.

Energy Market Authority (EMA) is a statutory board under the MOTI. Formed in 2001, EMA’s main goals are to ensure a reliable and secure energy supply, promote effective competition in the

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energy market and develop a dynamic energy sector in Singapore. Through its work, EMA seeks to forge a progressive energy landscape for sustained growth.

Building and Construction Authority (BCA) is an agency under the MND, championing the development of an excellent built environment for Singapore. Safety, quality, sustainability and user-friendliness are four key areas where BCA has a very significant influence on the built environment.

Land Transport Authority (LTA) was established in 1995 as a statutory board under the Ministry of Transport. LTA leads land transport developments in Singapore. LTA was formed through the merger of four public sector entities — the Registry of Vehicles, the Mass Rapid Transit Corporation, the Roads and Transportation Division of the Public Works Department and the Land Transport Division of the then Ministry of Communications. LTA plans the long-term transport needs of Singapore, including drivers as well as commuters who take public transport.

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9.5 Supplementary Materials Copenhagen Accord, Non-Binding Emission Reduction Commitments Singapore made its non-binding Copenhagen Accord commitments to reduce its BAU emission levels in 2020 by 16 percent, contingent upon a legally binding global agreement in which all countries implement their commitments.xi As the Copenhagen Accord falls short of such an agreement, the Government announced on January 11, 2010, that due to the lack of a binding global agreement, it will work towards EE measures to cut its BAU emission levels in 2020 between 7 to 11 percent. Moreover, the Government maintains that when a global agreement on climate change is reached it will implement additional measures to achieve the full 16 percent reduction. Projecting from 2005, Singapore’s BAU emissions are expected to reach 77.2 million tons in 2020. Figure 9: Sectoral Contributions to Emission in 2005 and 2020 BAU (projected) a) 2005 Emission (kilo tones)

b) Projected 2020 BAU Emissions

Electricity generation

Industry

19,315 (48%)

13,465 (33%)

7,056 (17%)

Secondary Consumption (use electricity)

8,328 (21%)

Overall

21,793 (54%)

Primary Consumption (combust fuels)

Consumers/ Households

Others

325 (1%)

216 (1%)

930 (2%)

5,910 (15%)

3,415 (8%)

732 (2%)

7,986 (19%)

6,235 (16%)

3,631 (9%)

732 (2%)

Transport

Buildings

2020 3.9% 7.6% 14.5% 60.3% 13.8%

TOTAL CO2 = 40,377 kilo tonnes n Industry n Building n Transport n Household n Others (waste, water, other electricity use) Note: Figure refers to total greenhouse gas emissions. Greenhouse gases other than carbon dioxide (CO2) are converted to their CO2-equivalent.

Source: Environmental Law Alliance Worldwide, 2012; and National Climate Change Strategy, 2012.58

xi The BAU level refers to a projection without policy intervention. It also refers to a “without measures”, “baseline” or “reference” projection.

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Energy Subsidies in Singapore The Government relies on market forces and price signals, and avoids energy subsidies. Price signals influence energy consumption and investment decisions to achieve efficiency and conservation. Instead of introducing feed-in tariffs (FiTs) to subsidise RE, the Government facilitates greater deployment of solar energy through market-based financing mechanisms. For example, Singapore has recently embarked on a solar leasing scheme, under which the solar system developer will design, finance, install, operate and maintain the solar PV systems, and is paid for the solar power generated and consumed at a preferential rate that is not higher than the retail electricity tariff. There are also opportunities to engage in biomass, waste and biofuels RE projects, which have been incentivized through the CDM. Without direct subsidies, concessional funding or FiTs, RE options in Singapore remain less affordable than conventional energy sources.

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10. References 1

Central Intelligence Agency Factbook. “Country Profile: Singapore.” Accessed August 23, 2013. https://www.cia.gov/ library/publications/the-world-factbook/geos/sn.html.

2

World Bank Data Bank. “GDP (current US$).” Accessed July 21, 2013. http://data.worldbank.org/indicator/NY.GDP. MKTP.CD.

3

World Bank Data Bank. “Population, total.” Accessed July 21, 2013. http://data.worldbank.org/indicator/SP.POP. TOTL.

4

World Bank Data Bank. “Urban population (% of total).” Accessed July 21, 2013. http://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS.

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International Monetary Fund. “World Economic Outlook Database 2011.” Accessed July 21, 2013. https://www.imf. org/external/pubs/ft/weo/2011/01/weodata/weoselco.aspx?g=2001&sg=All+countries.

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Economist Intelligence Unit. “EIU Country Data.” Accessed July 21, 2013. http://www.eiu.com/site_info.asp?info_ name=EIUcountryData&=entr.

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10

Adapted from:

International Energy Agency. “Statistics and Balances 2009.” Accessed July 21, 2013. https://www.iea.org/stats/. U.S. Energy Information Administration. “Countries Data.” Accessed July 21, 2013. http://www.eia.gov/countries/ data.cfm. World Bank. “Winds of Change: East Asia’s Sustainable Energy Future.” Accessed July 23, 2013. http://siteresources. worldbank.org/INTEASTASIAPACIFIC/Resources/226262-1271320774648/windsofchange_fullreport.pdf. World Bank Data Bank. “Energy imports, net (% of energy use).” Accessed July 23, 2013. http://data.worldbank.org/ indicator/EG.IMP.CONS.ZS. 11

Adapted from:

Indriyanto, Asclepias R., Nasrullah Salim, Fabby Tumiwa, Tri Mumpuni et al. “Electricity Governance in Indonesia: Assessment Report.” World Resources Institute, 2007. Accessed July 23, 2013. http://pdf.wri.org/egi_report_indonesia. pdf. International Energy Agency. “Access to Electricity 2011.” Accessed July 21, 2013. http://www.worldenergyoutlook. org/resources/energydevelopment/accesstoelectricity/. World Bank Data Bank. “Access to electricity (% of population).” Accessed July 23, 2013. http://data.worldbank.org/ indicator/EG.ELC.ACCS.ZS. 12

World Bank Data Bank. “Electric power transmission and distribution losses (% of output).” Accessed July 21, 2013. http://data.worldbank.org/indicator/EG.ELC.LOSS.ZS.

13

Adapted from:

Asia-Pacific Economic Cooperation. “Energy Overview 2012.” Accessed July 23, 2013. http://publications.apec.org/ publication-detail.php?pub_id=1432. Energdata. “Energy intensity of GDP at constant purchasing power parities.” Accessed July 21, 2013. http://yearbook.enerdata.net/energy-intensity-GDP-by-region.html.

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14

Adapted from:

International Energy Agency. “Statistics and Balances 2009.” Accessed July 21, 2013. https://www.iea.org/stats/. Intergovernmental Panel on Climate Change. “Revised 1996 Intergovernmental Panel on Climate Change’s National Guidelines.” Accessed August 1, 2013. http://www.ipcc-nggip.iges.or.jp/public/gl/invs1.html. 15

Adapted from:

Energy Market Authority of Singapore. “Singapore Energy Statistics, 2012.” Accessed July 21, 2013. http://www.ema. gov.sg/media/files/publications/EMA_SES_2012_Final.pdf. Maurer, Luiz T., and Luiz A. Barroso. Electricity Auctions: An Overview of Efficient Practices. Washington D.C.: International Bank for Reconstruction and Development/ World Bank, 2011. Accessed July 23, 2013. http://www.ifc.org/ wps/wcm/connect/8a92fa004aabaa73977bd79e0dc67fc6/Electricity+and+Demand+Side+Auctions.pdf?MOD=AJPERES.

Perusahaan Listrik Negara. “Indonesian Electricity Tariff.” Accessed July 23, 2013. http://www.pln.co.id/eng/?p=534.

Lee, Seung-Hoon. “Electricity in Korea.” Asia-Pacific Economic Cooperation, 2011. Accessed July 23, 2013. http:// mddb.apec.org/Documents/2011/SOM/SYM/11_som_sym1_009.pdf.

Wu, Yanrui, Xunpeng Shi, Fukunari Kimura et al. Energy Market Integration in East Asia: Theories, Electricity Sector and Subsidies. Jakarta: Economic Research Institute for ASEAN and Eastern Asia, 2012. Accessed July 23, 2013. http:// www.eria.org/RPR-2011-17.pdf.

16

Adapted from:

Organization for Economic Co-operation and Development. “Energy Statistics of Non-OECD Countries (2012).” Accessed July 23, 2013. http://www.oecd-ilibrary.org/energy/energy-statistics-of-non-oecd-countries_19962851-en. U.S. Energy Information Administration. “Countries Data.” Accessed July 21, 2013. http://www.eia.gov/countries/ data.cfm. 17

Adapted from:

International Energy Agency. “Statistics and Balances 2009.” Accessed July 21, 2013. https://www.iea.org/stats/.

Organization for Economic Co-operation and Development. “Energy Statistics of Non-OECD Countries (2012).” Accessed July 23, 2013. http://www.oecd-ilibrary.org/energy/energy-statistics-of-non-oecd-countries_19962851-en.

18

Organization for Economic Co-operation and Development. “Energy Statistics of Non-OECD Countries (2012).” Accessed July 23, 2013. http://www.oecd-ilibrary.org/energy/energy-statistics-of-non-oecd-countries_19962851-en.

19

Standard & Poor’s Rating Services. “Sovereigns Rating List.” Accessed July 21, 2013. http://www.standardandpoors. com/ratings/sovereigns/ratings-list/en/us.

20

World Bank. “Doing Business Economy Rankings.” Accessed July 21, 2013. http://www.doingbusiness.org/rankings.

21

Transparency International. “Corruption Perceptions Index 2011.” Accessed July 21, 2013. http://www.transparency. org/cpi2011/results.

22

Adapted from:

World Bank Data Bank. “Foreign direct investment, net inflows (% of GDP).” Accessed July 23, 2013. http://data. worldbank.org/indicator/BX.KLT.DINV.WD.GD.ZS. World Bank Data Bank. “Foreign direct investment, net outflows (% of GDP).” Accessed July 23, 2013. http://data. worldbank.org/indicator/BM.KLT.DINV.GD.ZS. 23

World Bank. “Private Participation in Infrastructure Database - Sector Data Snapshot.” Accessed July 21, 2013. http:// ppi.worldbank.org/explore/ppi_exploreSector.aspx?sectorID=2.

24

World Bank Data Bank. “Lending interest rate (%).” Accessed July 23, 2013. http://data.worldbank.org/indicator/ FR.INR.LEND.

25

World Bank Data Bank. “Interest rate spread (lending rate minus deposit rate, %).” Accessed July 23, 2013. http:// data.worldbank.org/indicator/FR.INR.LNDP.

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26

World Bank Data Bank. “Liquid assets to deposits and short term funding (%).” Accessed July 23, 2013. http://data. worldbank.org/indicator/GFDD.SI.06.

27

Energy Market Authority of Singapore. “Liquefied Natural Gas.” Accessed August 23, 2013. http://www.ema.gov.sg/ LNG/.

28

International Energy Agency. “Share of total primary energy supply (2009): Singapore.” Accessed August 23, 2013. http://www.iea.org/stats/pdf_graphs/SGTPESPI.pdf.

29

International Energy Agency. “Electricity generation by fuel (2009): Singapore.” Accessed August 23, 2013. http:// www.iea.org/stats/pdf_graphs/SGELEC.pdf.

30

Energy Efficient Singapore. “Energy Efficiency in Singapore.” Accessed August 23, 2013. http://app.e2singapore.gov. sg/.

31

Adapted from:

Inter-Ministerial Committee on Sustainable Development of Singapore. “Sustainable Singapore Blueprint 2009 .” Accessed August 23, 2013. http://app.mewr.gov.sg/data/ImgCont/1342/sgp2012_2006edition.pdf. Ministry of Environment and Water Resources of Singapore. “Singapore Green Plan 2012.” Accessed August 23, 2013. http://www.mewr.gov.sg/sgp2012/about_download.htm. 32

National Climate Change Secretariat Prime Minister’s Office Singapore. “Climate Change and Singapore: Challenges, Opportunities, Partnerships.” Accessed August 23, 2013. http://app.nccs.gov.sg/data/resources/docs/Documents/ NCCS-2012.pdf.

33

National Climate Change Strategy. “Sectoral Measures to Reduce Emissions (Up to 2020).” Accessed August 23, 2013. http://app.nccs.gov.sg/nccs-2012/sectoral-measures-to-reduce-emissions-up-to-2020.html.

34

Building and Construction Authority of Singapore. “Green Mark.” Accessed August 26, 2013. http://www.bca.gov. sg/GreenMark/green_mark_buildings.html.

35

World Resources Institute. “Singapore: Fuel Economy Labeling Scheme.” Accessed September 4, 2013. http://projects.wri.org/sd-pams-database/singapore/fuel-economy-labeling-scheme.

36

National Environmental Agency of Singapore. “The Energy Label .” Accessed August 26, 2013. http://app.nea.gov.sg/ cms/htdocs/article.asp?pid=2844.

37

Schwab, Klaus. “Global Competitiveness Index.” World Economic Forum, 2012. Accessed July 23, 2013. http://www3. weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf.

38

International Monetary Fund. “Country Report: Singapore.” Accessed August 28, 2013. http://www.imf.org/external/pubs/ft/scr/2012/cr12248.pdf.

39

Adapted from:

World Bank Data Bank. “Foreign direct investment, net inflows (BoP, current US$).” Accessed July 23, 2013. http:// data.worldbank.org/indicator/BX.KLT.DINV.CD.WD. World Bank Data Bank. “GDP (current US$).” Accessed July 21, 2013. http://data.worldbank.org/indicator/NY.GDP. MKTP.CD. 40

Hong Kong and Shanghai Banking Corporation. “Country Guide: Singapore.” Accessed August 27, 2013. https:// globalconnections.hsbc.com/global/en/tools-data/country-guides/sg-march-2013.

41

Ministry of Finance of Singapore. “Procurement Process.” Accessed August 28, 2013. http://app.mof.gov.sg/TemSub. aspx?pagesid=20120801357475560571&pagemode=live&&AspxAutoDetectCookieSupport=1.

42

Fogarty, David. “Singapore chases green dollars in clean-tech race.” Reuters, 2010. Accessed August 28, 2013. http:// www.reuters.com/article/2010/05/31/us-singapore-cleantech-idUSTRE64U0Y320100531.

43

Adapted from:

Environmental Law Alliance Worldwide. “Singapore’s National Climate Change Strategy.” Accessed August 29, 2013. http://www.elaw.org/system/files/Singapore_Full_Version.pdf. National Climate Change Secretariat Prime Minister’s Office Singapore. “Climate Change & Singapore: Challenges.

The World Bank – AusAID

41


Green Infrastructure Finance

Opportunities. Partnerships.” Accessed August 29, 2013. http://app.nccs.gov.sg/data/resources/docs/Documents/ NCCS-2012.pdf. 44

Ministry of Environment and Water Resources of Singapore. “The Singapore Green Plan 2012.” Accessed August 29, 2013. http://app.mewr.gov.sg/data/ImgCont/1342/sgp2012.pdf.

45

Ministry for Trade and Industry of Singapore. “National Energy Policy Report.” Accessed August 29, 2013. http:// www.mti.gov.sg/ResearchRoom/Documents/app.mti.gov.sg/data/pages/885/doc/NEPR%202007.pdf.

46

Singapore Economic Strategies Committee . “Report of the Economic Strategies Committee.” Accessed August 29, 2013. http://www.mti.gov.sg/ResearchRoom/Pages/Report-of-the-Economic-Strategies-Committee.aspx.

47

Energy Market Authority of Singapore. “Clean and Renewable Energy.” Accessed August 28, 2013. http://www.ema. gov.sg/page/31/id:64/.

48

Energy Market Authority of Singapore. “Fuel Mix For Electricity Generation By Energy Products.” Accessed August 29, 2013. http://www.ema.gov.sg/media/files/facts_and_figures/fuel_mix/Fuel_Mix%20extracted%20from%20Singapore%20Energy%20Statistics.pdf.

49

Building and Construction Authority of Singapore . “Second Green Building Master Plan.” Accessed August 28, 2013. http://www.bca.gov.sg/greenMark/others/gbmp2.pdf.

50

Building and Construction Authority of Singapore. “Green Mark Incentive Scheme for Existing Buildings.” Accessed August 28, 2013. http://www.bca.gov.sg/greenmark/gmiseb.html.

51

National Environment Agency of Singapore. “Progress of Green Incentives, Energy Efficiency Improvement Assistance Scheme.” Accessed August 29, 2013. http://www.nea.gov.sg/cms/ar2011/safeguard-7.html.

52

Ministry of Environment and Water Resources of Singapore. “Sustainable Singapore.” Accessed August 29, 2013. http://app.mewr.gov.sg/data/ImgCont/1292/sustainbleblueprint_forweb.pdf.

53

National Research Foundation of Singapore. “Additional Funding to Spur Research and Development.” Accessed August 29, 2013. http://www.nrf.gov.sg/nrf/uploadedFiles/News_and_Events/Press_Release/2011/20110712_$195%20 EIPO%20Energy%20Research%20Funding,%2012%20July%202011%20(Press%20Release).pdf.

54

Ministry of Finance of Singapore. “Smart Energy Economy.” Accessed August 29, 2013. http://app.mof.gov.sg/data/ cmsresource/ESC%20Report/Subcommittee%20on%20Ensuring%20Energy%20Resilience%20and%20Sustainable%20Growth.pdf.

55

Housing and Development Board of Singapore. “First Solar Leasing Project in Singapore.” Accessed August 29, 2013. http://www.hdb.gov.sg/fi10/fi10296p.nsf/PressReleases/6B313D60012ADD5D4825790C002DC8A1?OpenDocument.

56

Energy Efficient Singapore. “Objective and Members.” Accessed September 13, 2013. http://app.e2singapore.gov.sg/ About_Esup2/supPO/Objective_and_Members.aspx.

National Climate Change Secretariat of Singapore. “Organizational Chart.” Accessed August 29, 2013. http://app. nccs.gov.sg/page.aspx?pageid=46&secid=7.

57

58

Adapted from:

Environmental Law Alliance Worldwide. “Singapore’s National Climate Change Strategy.” Accessed August 29, 2013. http://www.elaw.org/system/files/Singapore_Full_Version.pdf.

National Climate Change Secretariat Prime Minister’s Office Singapore. “Climate Change and Singapore: Challenges, Opportunities, Partnerships.” Accessed August 23, 2013. http://app.nccs.gov.sg/data/resources/docs/Documents/ NCCS-2012.pdf.

42

The World Bank – AusAID


I

n July 2012, the Green Infrastructure Finance Framework Report was published to address the constraints in financing green infrastructure and to develop a new PPP-based approach to accelerate investments in lowemission technologies. The approach calls for assessing the “Green Investment Climate� of a given country in order to develop country-specific recommendations for policy and incentive programs as well as other measures which can be introduced in order to further promote green growth in an economy. This report includes one of the first Green Investment Country Profiles completed for the East Asia and Pacific Region as part of bringing the approach closer to operational status. The initial countries include China, Philippines, Vietnam, Malaysia, Indonesia, Singapore and South Korea. The assessment involves not only the green policy and incentives environment, but also the country’s overall natural resource endowment of fossil and renewable energy, its industrial development strategy in addition to general business indicators and other considerations, such as electricity prices, the capacity of the financial sector to mobilize long-term domestic financing, as well as their overall regulatory and legal capacity to implement PPPs. The country profiles provide a general understanding of the attractiveness, prevailing trends, strengths, and other aspects affecting the ability of the country to leverage its green growth potential.

www.worldbank.org

www.ausaid.gov.au


Green Investment Climate Country Profile – Singapore