Funding aims to promote sustainable practices and decarbonisation in local industries
S$3.4 million has been allocated to 90 projects under Singapore’s Energy Efficiency Fund (E2F), according to Second Minister for Trade and Industry Tan See Leng in Parliament on April 3. The fund, previously administered by the National Environment Agency, has now been incorporated into the broader Energy Efficiency Grant.
The Minister also provided an update on the government’s carbon tax transition framework, which was introduced in January 2022. The Economic Development Board has engaged more than 20 companies, particularly in the chemicals and semiconductor sectors, to guide them through the transition.
Under the framework, Singapore’s carbon tax, currently set at S$25 per tonne of emissions, will rise from S$5 per tonne in 2023. While some firms will receive transitory allowances for their emissions, the rest will be subject to the full carbon tax. The government will continue to assess and adjust allowances based on companies’ progress in decarbonisation and international advancements in green technologies.
Further details on the carbon tax transition framework are expected to be released in about a year, as companies continue to evaluate international benchmarks and decarbonisation opportunities.
