Sustainable Development Measures
The Singapore Economic Development Board (EDB) has launched a series of sustainable development measures aimed at helping enterprises in low carbon transition and sustainable development.
EDB believes that companies need to adapt to the growing demand from investors and consumers for green products and services and implement net zero programs to gain an advantage in the sustainable transition. Therefore, the government needs to increase support for enterprises, including financing support and talent cultivation.
Related Post: Introduction to Singapore Green Plan 2030
Modify Enterprise Financing Scheme
As part of its sustainable development measures, Enterprise Singapore plans to extend the Enterprise Financing Scheme-Green for two years. Launched in October 2021, the Enterprise Financing Scheme-Green aims to provide financing opportunities to companies developing green technologies and green solutions. This program provides companies with 70% risk sharing so that financial institutions can provide loans to them. This plan was originally set to end in March 2024, and this extension will provide more opportunities for green start-ups.
In addition to extending the Enterprise Financing Scheme, the scope will also be expanded from green solutions to the Green or Amber economic activities defined in the Singapore-Asia Taxonomy for Sustainable Finance. Including Amber economic activities will help enterprises that works for transition.
Establish Sustainability Reporting Grant
As climate-related information disclosure is included as part of mandatory disclosure by Monetary of Singapore, the Singapore Economic Development Board and Enterprise Singapore plan to establish a sustainability reporting grant to provide financial support to large companies with annual revenue of more than US$100 million to reduce their costs of producing sustainability reports. The upper limit of this funding is 30% of the cost of a company’s sustainability report cost and will not exceed S$150,000.
In addition to providing subsidies for large companies, Enterprise Singapore will also launch a program with sustainable services providers to help small and medium enterprises (SMEs) produce sustainability reports (although sustainability disclosure for SMEs is currently not mandatory). The new scheme will run for three years and cover 70% of reporting costs for SMEs in the first year and 50% in the subsequent two years.
Strengthen Green Talent Training
To support the transition of a low-carbon and sustainable economy, the Singapore Economic Development Board has established a Green Skills Committee to develop training programs for green talents. Enterprise Singapore plans to partner with sustainable service providers to provide internship opportunities for students and early professionals.
The Singapore Economic Development Board also plans to leverage Singapore’s advantages in commodity trading and finance to build regional carbon service capabilities. The Singapore Economic Development Board and Enterprise Singapore are working with the National University of Singapore and Nanyang Technological University to develop corresponding training programs, which will be announced by the Institutes of Higher Learning this year.
Optimize Resource Efficiency Emissions Grants and Energy Efficiency Grants
The Resource Efficiency Grant for Emissions is designed to provide financial support for projects by industrial companies to improve energy efficiency and reduce carbon emissions. The Economic Development Board is planning to lower the carbon emission reduction threshold from 500 tons per year to 250 tons per year and extend the grant scheme beyond March 2024. These measures can enable more industrial enterprises to receive subsidies.
The Energy Efficiency Grant aims to provide financial support for companies to improve energy efficiency. It is initially launched in 2022 and is targeted at the food industry and retail industry. Economic Development Board is expanding the scope of subsidies to more industries to provide additional support to companies implementing carbon emission reductions.
Reference:
Supporting Businesses in the Transition to a Low-carbon and Sustainable Future
