Several sustainability initiatives were announced during Singapore’s Budget 2024 and the Singapore Airshow. Here’s a recap of significant developments in Singapore’s sustainability landscape during Q1 2024.
1. New grant for large businesses to defray costs of sustainability reporting
From FY2027, large non-listed companies will have to make climate disclosures. The Sustainability Reporting Grant, administered by EDB and Enterprise Singapore, is for companies with annual revenues of S$100 million and above. The grant will cover up to 30 per cent of qualifying costs in preparation of the first report, capped at S$150,000. It is meant to encourage companies to publish climate-related disclosures to meet the increasing expectations of customers and investors around transparency.
2. Enhancements to Resource Efficiency Grant for Emissions (REG(E))
The REG(E) provides support for industrial facilities to undertake projects that improve their energy efficiency and reduce carbon emissions. The enhancement will lower the carbon abatement threshold from 500 tonnes per annum to 250 tonnes per annum. The grant will also be extended beyond March 2024 to support and broaden the number of qualified companies with industrial facilities and projects they can tap into.
3. Singapore announces Future Energy Fund
The S$5 billion fund will be channelled towards supporting infrastructure investments for viable low-carbon electricity from solar, wind or hydropower, and to support the generation, storage and delivery of hydrogen. Recognising that these investments cannot be undertaken by the private sector alone, the Fund will allow Singapore to move quickly and enhance our security in clean energy.
4. Singapore partners ExxonMobil-Shell consortium to study cross-border carbon capture and storage
The Government is collaborating with S-Hub, led by ExxonMobil and Shell, to study the feasibility of a cross-border carbon capture and storage (CCS) project, aiming to capture and store at least 2.5 million tonnes of CO2 annually. The partnership aims to assess the technical and economic viability of aggregating CO2 emissions in Singapore and working with regional partners to identify potential CO2 storage sites. Singapore and Indonesia have also signed a Letter of Intent to establish a workgroup for CCS cooperation. Singapore is also investing about $40 million to support projects under the Directed Hydrogen Programme, and another $13 million in promising low-carbon energy alternatives such as carbon capture utilisation and storage. Funding will go towards efforts to advance climate solutions, with the government pumping a further $3 billion to the Research, Innovation and Enterprise 2025 plan.
5. IEA and Singapore team up to spur Asia’s green transition
The International Energy Agency (IEA) is partnering Singapore to establish a regional office here to accelerate Asia's transition to cleaner energy. Scheduled to commence operations in the second half of 2024, this will be the IEA's first office outside its Paris headquarters. The centre will offer policy guidance, technical assistance and training, focusing on deploying renewables and other clean energy technologies in the region, enhancing cross-border power trade, and facilitating clean energy investments.
6. Sustainability-related announcements at the Singapore Airshow 2024
Singapore announced its Sustainable Air Hub Blueprint - a plan to build up the ecosystem to support the use of Sustainable Aviation Fuel (SAF) in Singapore. Under the Blueprint, SAF will be mandatory for flights departing from Singapore from 2026, with an SAF levy introduced on these flights.
Airbus and EDB signed a Memorandum of Understanding (MOU) to establish the Airbus Sustainable Aviation Hub in Singapore, focusing on sustainable aviation R&D. The hub, located at Seletar Aerospace Park, will concentrate on areas such as sustainable fuel, decarbonisation, aviation maintenance, services, operations, and air traffic management. It will spur collaborations with local enterprises, universities, and research institutions to promote knowledge exchange and joint research initiatives.
7. Singapore-based company Nandina REM debuts recycled carbon fibre material for aircraft, EVs
Nandina REM announced its breakthrough in recycling carbon fibre from decommissioned aircraft for use in new aircraft at the Singapore Airshow 2024. By partnering with R&D statutory board Agency for Science, Technology and Research, they developed an innovative low-temperature, solvent-based recycling process, which allows them to preserve the original quality of carbon fibre products, enabling its use in aircraft seats and galleys, as well as electric vehicles. By 2024, Nandina aims to recycle 40 aircraft and double this number in the following two years, with operations in Malaysia for aircraft recycling and in Singapore for carbon fibre reprocessing.
8. Learn how Singapore became Asia’s launchpad for sustainable innovation and tech
A 7-minute read on how EDB is supporting businesses to operate more sustainably in Singapore, while supporting the growth of climate tech innovation. Hear from EDB Executive Vice-President Damian Chan about how Singapore is transforming its energy and chemicals sector and the role it wants to play in the global carbon services market.
Learn about how Singapore is partnering businesses to accelerate their low-carbon transition and seize new opportunities in the green economy.
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