Government sets up S$22m grant to help companies go green

Wednesday November 5 2008

SINGAPORE: Going green saves costs for companies, but making that first move is not always easy.

To nudge companies along the green path, the Ministry of Environment and Water Resources (MEWR) announced a S$22 million grant on Thursday.

Implementing energy-saving measures could be as simple as switching to energy-efficient bulbs or as complicated as changing industry processes that could save a company tens of thousands of dollars.

The new Grant for Energy Efficient Technologies (GREET) scheme will co-fund up to 50 per cent of the costs incurred – capped at S$2 million per project – when companies buy energy-efficient equipment and technologies.

Many companies have given the feedback that energy efficiency is not necessarily their highest priority, especially in these troubled times. Instead, their focus – especially for small- and medium-sized enterprises (SMEs) – is on improving product yield and getting quick paybacks.

Recognising these issues, MEWR's Senior Parliamentary Secretary Amy Khor said at least part of the grant will be earmarked for SMEs.

She said: "We think that for SMEs, there may be a lot more obstacles such as lack of information and other concerns. Capital constraint is another concern."

As for the current economic slowdown, Dr Khor said there is also a flipside to the situation.

"Due to the economic slowdown, many of these industries may have (more) shutdown time. It's a good time to review operations and decide where they can cut costs. Energy efficiency is one area that is often overlooked," she said.

The grant comes on the back of another scheme that was launched some three years ago to help companies conduct energy audits.

Unfortunately, only about 12 per cent of the firms went on to implement green cost-saving measures, primarily due to initial capital costs. The new GREET scheme hopes to plug that gap now.