(i) Towards Environmental Sustainability

1-1         I would like to thank Members for their questions and suggestions.

Our Firm Foundations

1-2         Singapore is small and densely populated. To sustain economic growth, social progress and our quality of life, development has to go hand-in-hand with efforts to preserve our environment.

1-3         The challenge we face today is to achieve environmental sustainability over the long term. In other words, how can we ensure that Singaporeans will continue to enjoy clean air, clean water and clean land many years down the road?

1-4         We have a firm foundation. So far, we have made economic progress without compromising our environment. Singapore today enjoys a clean and healthy living environment that is internationally recognised. We have consistently fared well in the PERC surveys on perceptions of the environment.

1-5         Our ambient air quality is good compared with that in major cities of the world, despite our being a densely-populated city-state with industrial centres within our city boundaries. For water, we take a long-term view to ensure we will always have sufficient, reliable and diversified water supply.  We have steadily invested in infrastructure, such as the Marina Reservoir and Deep Tunnel Sewerage System, and have also been encouraging water conservation. For waste, we have created a sustainable waste management system for land-scarce Singapore. I will speak more on these initiatives later.

Inter-Ministerial Committee on Sustainable Development

1-6         Environmental sustainability will remain a key priority for Singapore with our growing population and economy. As announced by Prime Minister in January this year, the Minister for National Development and I co-chair an Inter-Ministerial Committee to develop holistic strategies towards sustainable development for Singapore. Minister Mah has earlier outlined to the House the work that will be undertaken by the Committee.

1-7         Sustainable development means we must continue to achieve good environmental performance while not undermining economic growth and competitiveness. We must take steps to achieve greater efficiency in resources like water, energy and land. This will make our businesses and economy more competitive and at the same time reduce wastage of environmental resources. It also allows Singapore to play our part as a responsible global citizen to contribute to collective efforts to tackle environmental challenges.

Opportunities from Environmental Sustainability

1-8         Many cities are grappling with environmental challenges such as pollution from industries and vehicles and the difficulty of finding suitable land for waste disposal. The resultant need for solutions has produced a burgeoning global environment and water industry.  With Singapore’s good track record, we have a head-start to build up a vibrant environment and water sector. Efforts to do so are already underway.

1-9         Take for example the water sector, where our achievements in water management and developing NEWater have attracted international attention. Building on this, our cluster development efforts have enabled us to build up a thriving eco-system of water companies, and helped our local companies to expand overseas. To add to our competitive edge, we have an on-going research programme in Clean Water and are confident our investments will pay off in terms of new value-add to GDP and jobs. I will touch more on these efforts in a later cut.

1-10         Similarly, EDB is spearheading the development of the local Clean Energy sector by catalyzing R&D and test-bedding of photovoltaic technologies for harnessing solar energy.

1-11         Aside from water and clean energy, there is a large and growing market for other environmental technologies. My Ministry is therefore also looking at other potential areas where we can build up our capabilities and leverage on existing strengths to develop Singapore into a hub for environmental sustainability solutions and technologies.

1-12         Demand-side actions are also important. I would like to assure that my Ministry will continue to engage both households and businesses to encourage the adoption of environmentally-friendly actions and habits as a way of life. These include energy efficiency, recycling, and water conservation, just to name a few. I will elaborate more on these areas later.

Everyone Has a Part to Play

1-13         Even as we work to capitalise on the economic opportunities, we must bear in mind that environmental sustainability is ultimately about handing over to our future generations a high quality environment, ideally even better than what we enjoy today.

1-14         Everyone has a part to play and we want every Singaporean to make an effort to care for and protect the environment. To reinforce this message, we launched Clean and Green Singapore last year to replace the Clean and Green Week so that there are now activities throughout the year to encourage Singaporeans to adopt environmentally friendly actions and habits. For instance, we agree fully that large scale events should be organised in a manner that minimises the impact on the environment. We will continue to engage the 3P sector to do more in this area.

1-15         I will now touch on some of the specific initiatives that my Ministry is embarking on to ensure environmental sustainability for Singapore, starting with climate change and energy efficiency.

(ii) Addressing Climate Change & Achieving Energy Efficiency

Addressing Climate Change

1-16         Climate change is a serious threat which has to be addressed collectively by all countries.  This was recognised at the UN Framework Convention on Climate Change meeting held in Bali in December last year.  At the same time any international framework on climate change has to take into account the national circumstances of different countries and recognise the need to balance environmental sustainability and economic growth.

1-17         Certain developed countries are taking the lead in addressing climate change.  For example, UK has introduced a Climate Change Bill in 2007 to provide a framework for their domestic climate change response.

1-18         Singapore is committed to play its part in the global effort to address climate change as well. We will adopt a practical approach, as captured in Singapore’s National Climate Change Strategy or NCCS for short.  It is now available online after extensive consultations with our key stakeholders including private companies, academics and youths.

1-19         The NCCS sets out our efforts to better understand Singapore’s vulnerabilities to climate change and the adaptation measures required.  It documents how we are mitigating our greenhouse gas emissions and contributing to international efforts addressing climate change. As our understanding of climate change grows, technology advances and competencies develop, our policies and measures will evolve and improve, and the NCCS will be updated in tandem.

Vulnerability Assessment and Adaptation measures

1-20         We know some potential climate change impacts, such as on water resources and flooding.  As a result of our policies in the past, we have existing measures that help address these impacts.  For example, since 1991, we have required new reclamation projects to be built at 125 cm above the highest recorded known tide level.  This is well above the maximum sea level rise of 59 cm by 2100 predicted by the 4th Assessment Report of the Intergovernmental Panel on Climate Change or IPCC.

1-21         In addition, some of the past and ongoing programmes that PUB has undertaken will put us in good stead in the face of uncertainties from climate change. We developed NEWater and desalination, both of which are not dependent on rainfall, to diversify our water supply and increase its resilience. Other initiatives in drainage and flood alleviation will also address potential challenges from rising sea levels.

1-22         Nonetheless, we need to continue improving our understanding of climate change effects and impacts.  I announced last year that NEA had commissioned a two-year study to better understand specific implications of climate change on Singapore.  These include sea level and temperature changes, flooding and coastal erosion. The study, when completed in 2009, will help us assess what more we need to do to adapt to climate change.

Becoming more energy efficient

1-23         Like water, energy is a scarce resource that we must conserve and use as efficiently as we can.  We must also take steps to mitigate the potential environmental impact of the increased demand for energy from faster economic and population growth.  To mitigate our greenhouse gas emissions, energy efficiency is our key strategy.  Such measures will also increase our national resilience to the global uncertainties of energy supply and price.

1-24         Each of us, whether individual or an organisation, has a role to play in conserving energy. The International Energy Agency estimates that unexploited energy efficiency potentially offers the single largest opportunity for emissions reductions across all economies, accounting for between 30% to 50% of CO₂ emission reductions by 2050.

1-25         Energy efficiency is not just a sound climate change policy.  It also promises significant benefits for consumers, companies and the economy at large.

1-26         For consumers and families, improving efficiency and avoiding waste means using less electricity at home and less petrol for driving.  This translates into lower utility and transport bills.

1-27         With oil hitting US$100 a barrel, the impact of energy efficiency to the bottom line of businesses is not trivial.  By increasing the energy efficiency of their business operations, companies combine both environmental responsibility and business profitability.

1-28         For the economy, more efficient use of energy reduces energy demand and lowers the need to import fuels.

1-29         However, the uptake of efficiency measures is often slow, largely because of lack of information about the available options, capital constraints and slow turnover of old capital stock.

1-30         Where these barriers exist, the government has a role in providing targeted incentives, information and standards, to help trigger wider deployment, lower costs, and encourage innovation.  Other countries and cities have recognised this (e.g. New York).  Singapore should do no less to capture the benefits of energy efficiency.

1-31         The NEA set up the inter-agency Energy Efficiency Programme Office (E²PO) in May 2007, to identify and implement measures to improve Singapore’s energy efficiency.

1-32         One area is the public sector.  The Government will continue to take the lead to improve its energy efficiency and influence wider action. I announced last year that all large air-conditioned Government office buildings, as well as polytechnics and ITEs, will conduct energy audits to improve their energy efficiency by March 2010.  As of end 2007, 8 such buildings have completed their audits and adopted energy-saving measures such as optimising air-conditioning and improving lighting efficiency.  $2.6mil in total annual savings was achieved.  Another 6 public sector buildings are in the process of implementing energy saving measures. The remaining 40 buildings will complete their audits within the next 2 years.  In addition, for public sector buildings with over 15,000 square meters of air-conditioned Gross Floor Area, we will progressively introduce minimum efficiency performance standards for our central air-conditioning plants.

1-33         To kick-start further efforts to promote greater energy efficiency in the private and people sectors, E²PO launched an Energy Efficiency plan (E² Singapore) to coordinate energy efficiency programmes in all the main sectors of energy use.

Sustainable Energy Fund

1-34         I am pleased to announce that for a start, a Sustainable Energy Fund of $50mil over 5 years has been established to build competency in energy management and support the programmes under E² Singapore.  A targeted sectoral approach will be taken to improve energy efficiency across the economy.

Improving Energy Efficiency of Industries

1-35         Manufacturing industries account for a significant share of energy use in Singapore. Regardless of their products, industrial facilities have to be designed to be efficient right from the start and use efficient equipment. They should also have trained personnel who recognise the opportunities for improving energy efficiency.

1-36         To help new industrial facilities incorporate energy efficiency considerations at the design stage, NEA will introduce a Design for Efficiency scheme. This pilot scheme will co-fund design workshops for new industrial developments to meet high standards of energy efficiency.  Texas Instruments or TI in the USA, for example, was able to design an extremely efficient wafer chip factory through similar workshops.  It was estimated that their new factory will use 20% less electricity and 35% less water as compared to their wafer chip factories built previously.

1-37         We also encourage industries to adopt energy efficient technologies and equipment. Currently, NEA administers the Energy Efficiency Improvement Assistance Scheme to co-fund energy audits for companies.  As of end January 2008, 87 manufacturing facilities and buildings have identified energy efficiency measures which will result in $23 million in annual energy savings.  To further encourage our companies, NEA will establish a Grant for Energy Efficient Technology.  This grant, also known as GREET, will provide funding for companies to offset part of their investment cost for energy efficient equipment.

1-38         In addition, NEA will provide a Singapore Certified Energy Manager Training Grant to help equip facility owners and technical staff with the necessary knowledge and skills to manage energy services within their facilities.  We will also study the feasibility of making the appointment of energy managers mandatory for large manufacturing and building facilities in the next 3 to 5 years.

Efficiency of the Power Generation Sector

1-39         The power generation sector currently accounts for about 50% of Singapore's CO₂ emissions.  To support the increased demand for electricity from a growing population and economy, my Ministry is working with the economic agencies to study commercially viable options to increase our power generation capacity. With increasing global concern over CO₂ emissions that lead to climate change, one of the key considerations will also be how capacity can be increased in an environmentally sustainable manner which is not regressive for our efforts to mitigate carbon emissions.

1-40         We have successfully balanced between economic growth, energy security and environmental sustainability considerations in the past. For instance, through the greater use of efficient combined-cycle generation technology, overall power generation efficiency has increased from 37% to 44% from 2000 to 2007.  In addition, the proportion of electricity generated by natural gas in Singapore increased from 19% to 79% over the same period.  These contributed significantly to the reduction in carbon intensity or CO₂ per dollar GDP in 2006, to about 30% below 1990 levels.

1-41         We will continue to explore all options to balance between the various considerations.

Improving Energy Efficiency of Building

1-42         For the buildings sector, we will continue to work with BCA to encourage the development and construction of energy efficient buildings. BCA plans to introduce mandatory standards for new buildings equivalent to the Green Mark standard from Apr 2008.

1-43         We recognise that the existing stock of buildings is far greater than the number of new buildings coming up. Steps have to be taken to improve the energy efficiency of these existing buildings. BCA is developing a grant to encourage the upgrading of building envelopes of existing buildings to improve the overall building energy efficiency.

1-44         In addition, NEA and the Energy Sustainability Unit of the National University of Singapore launched the EnergySmart Building Labelling Scheme in 2005 for office buildings.  EnergySmart recognises the top 25 percentile of buildings in terms of energy efficiency and indoor air quality.  In August 2007, the scheme was extended to hotels.  By recognising hotels which perform best in energy efficiency, we hope to motivate other hotels to also invest in energy efficient equipment to lower their operational costs and attract environmentally-conscious travellers.

1-45         The Regent Singapore is one of our EnergySmart hotels.  It adopted various energy efficiency measures such as using energy efficient lighting and optimising its air-conditioning system.  Through these measures, the hotel achieved a 26% reduction in electricity consumption while providing the same level of comfort to its guests.

Improving Energy Efficiency on the Road

1-46         All of us contribute to global warming and climate change through energy consumption which increases greenhouse gas emissions.  So, we can all make a difference, by making energy-efficient choices at home, at work, and in our choice of transport.

1-47         According to the Fourth Assessment Report released by the IPCC, the transport sector was responsible for 23% of world energy-related greenhouse gas emissions in 2004.  In Singapore, the transport sector accounted for about 19% of our CO2 emissions in 2005.

1-48         There is scope to improve the energy efficiency of the transport sector.  For densely populated and land-scarce Singapore, public transport is the most energy efficient form of transport. The Ministry of Transport has announced a target to improve the share of commuters using public transport during morning peak hours from 63% in 2004 to 70% by 2020. Vehicle population and usage demand measures will also continue to feature in land transport policies

1-49         To help drivers choose more fuel efficient vehicles, the government will introduce mandatory fuel economy labelling for passenger cars from 1 April 2009.  All automobile retailers will have to display the fuel economy labels of passenger car models at the showroom.  Fuel economy information will also be available on the NEA website.

Improving Energy Efficiency for Our Consumers

1-50         For electrical appliances, air-conditioners and refrigerators in stores now carry the energy label.  The Mandatory Energy Labelling Scheme will be extended to clothes dryers by April 2009.  We will consider extending the scheme to other appliances including household lightings and water heaters by 2010.  Going forward, we will also look into imposing Minimum Energy Performance Standards on household air-conditioners and fridges over the next 2 to 3 years.

(iii) National Campaign on Energy Saving & Clean Energies

[Delivered by Dr Amy Khor, Senior Parliamentary Secretary, Ministry of the Environment and Water Resources.]

National Campaign on Energy Saving

1-51         Every one of us can play a role to be more energy efficient, and conserve energy.

1-52         Simple habits can help households save electricity and do their part to address climate change.  Let me give you an example of a household in Punggol that started switching their thermostat from 22 degrees Celsius to 25 degrees in October last year.  They achieved electricity savings of over 10% in the process.  That’s not all.  In December this energy-conscious household switched to using fans instead.  This cut their electricity consumption by a further 24%, and they can potentially save over $330 every year. As evident from this example, households can achieve savings in electricity consumption and bills by making energy efficient decisions.  Yet many people are in effect leaving money on the table by not doing so.

1-53         I am heartened that grassroots organizations and companies have been encouraging residents and businesses to adopt energy-saving actions.  For example, South West CDC launched the Cool South West! Campaign last year.  The Marine Parade Constituency launched an initiative called “Towards a Greener Tomorrow” early this year, to promote energy conservation in households. Northwest CDC launched a month-long North West Green Festival in July last year to create greater awareness of environmental issues including energy conservation.

1-54         Several companies have also participated in initiatives to save energy.    Philips Electronics Singapore partnered South West CDC to sponsor energy-efficient light bulbs to be installed free of charge in 2,000 low-income households.  Ricoh Asia Pacific partnered the Singapore Environment Council to “Eco Action 2007” on World Environment Day in 2007, where 15 organisations pledged to take actions to reduce their energy consumption, saving about 8000kWh or $1500 in electricity bills in total.

1-55         These community-led and industry-led initiatives are important steps in the journey to improve our energy efficiency.  To further motivate Singaporeans to conserve energy, I am glad to inform that the NEA will be launching a national campaign to help households save energy through various avenues including our grassroots and schools.  This campaign will include teaching residents how they can save both electricity and money, by making simple changes in their daily habits and careful selection of energy efficient appliances.

1-56         Sir, our energy efficiency initiatives under E² Singapore will promote environmental sustainability and contribute to economic growth.  I urge Singaporeans to make energy efficient choices in their daily lives, and play a role in making us an energy efficient Singapore.

Clean Energy

1-57         The Government is taking an active role in driving Clean Energy R&D investment and test-bedding, as part of an integrated strategy comprising technology development, cluster development and internationalisation.  The Clean Energy Programme Office, or CEPO, led by EDB and in partnership with agencies such as NEA, has been set up to drive efforts in this area.  CEPO has launched comprehensive research and test-bedding programmes on clean energy.  These include $170 million from the National Research Foundation for fuel cell and solar R&D, as well as a $17 million Clean Energy Research & Test-bedding Platform or CERT to test-bed solar photovoltaic technologies.  The PUB’s Marina Barrage will be among the first batch of test-bedding sites under the CERT programme.  The Ministry of Trade and Industry will elaborate more on this topic during their COS session.

ASEAN Declaration on Environmental Sustainability and Singapore Declaration on Climate Change, Energy and the Environment

1-58         In November 2007, ASEAN and East Asia adopted the ASEAN Declaration on Environmental Sustainability (ADES) and the Singapore Declaration on Climate Change, Energy and the Environment, demonstrating the region’s shared commitment towards environmental protection and conservation.  Our initiatives in sustainable development will contribute towards this regional effort.

1-59         The Declarations re-affirmed the need to take an effective approach to the interrelated challenges of climate change, energy security and other environmental and health issues. Leaders also called for intensification of on-going cooperation to improve energy efficiency, and the use of cleaner energy, including the use of renewable and alternative sources.   Singapore’s drive towards energy efficiency and clean energy will enable us to play our part, and share our experiences with other countries.

1-60         In addition, ASEAN Leaders agreed to encourage efforts to develop a climate change initiative to further strengthen regional cooperation in responding to climate change, and to undertake concrete actions to respond to its adverse impacts.  For instance, we could share information on the vulnerabilities and impacts of climate change, and harness regional expertise for a more concerted action at the regional level.

1-61         Singapore will actively pursue opportunities for collaborating with our ASEAN partners on how the region can leverage on energy efficiency initiatives and clean energy to help mitigate the impacts of climate change.