ENVIRONMENTAL ISSUES

ENVIRONMENTAL ISSUES

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(Carbon emissions/recycling): **

5.

Dr Fatimah Lateef asked the Minister for the Environment and Water Resources (a) what is our total carbon emissions for the last three years; and (b) have our national efforts such as the promotion of recycling and energy efficient products, useful harnessing of natural gas and regular energy audits made any difference in reducing our carbon footprint.

Assoc. Prof. Dr Yaacob Ibrahim: Singapore's carbon dioxide (CO 2 ) emissions in 2004, 2005 and 2006 were 39.6 megatonnes (Mt), 40.4Mt and 41.6Mt respectively. This accounts for less than 0.2% of global CO 2 emissions. The relatively low CO 2 emission growth (5% from 2004 to 2006) compared to our economic growth (15% from 2004 to 2006) came about through a conscious effort to improve our energy efficiency and switch to less carbon-intensive energy sources. As a result, our carbon intensity (CO 2 emissions per dollar GDP) has improved from 0.28 kt/$m in 1990, to 0.22 kt/$m in 2004 and to 0.20 kt/$m in 2006, a 30% improvement from the 1990 level.

Energy efficiency reduces our CO 2 emissions, improves our economic competitiveness and enhances our energy security. NEA has launched the "Energy Efficient Singapore" (E 2 Singapore) plan to improve the energy efficiency in five key sectors: power generation, industry, buildings, transport and households. The Energy Efficiency Programme Office (E 2 PO), chaired by NEA and comprising members from EMA, EDB, LTA, BCA and A*STAR, will continue to develop and refine the E 2 Singapore plan.

Some measures are already in place. The proportion of electricity generated by natural gas-fired combined cycle generation technology, the most energy efficient technology currently available, grew from 19% in 2000 to 78% in 2006, leading to an estimated CO 2 emission reduction of 4,700 kt [2]. As of 28th January 2008, some 87 companies have obtained grants under the Energy Efficiency Improvement Assistance Scheme which co-funds energy audits. When implemented, the recommended energy efficiency measures could lead to annual energy savings of almost 300,000 MWh (or about $23 million), and a CO 2 emission reduction of 150 kt per year.

In the transport sector, the Green Vehicle Rebate (GVR) promotes cleaner and more fuel-efficient vehicles. Since the GVR was revised in December 2005, the number of hybrid and compressed natural gas vehicles registered in Singapore has increased from about 140 to more than 1,500 by end 2007. In the buildings sector, BCA introduced the Green Mark scheme in 2005 to encourage more energy efficient and environmentally friendly buildings. NEA has also introduced the Energy Smart scheme for office buildings and hotels.

To promote energy efficiency among households, mandatory energy labelling was introduced this year for household refrigerators and air-conditioners. The energy labels allow consumers to factor in the potential energy cost savings they will enjoy by buying more energy efficient appliances.

Recycling can also reduce energy consumption, CO 2 emissions and landfill space needed. The recycling of aluminium and other metals can reduce energy consumption by as much as 95%, while the recycling of glass, paper, steel and plastics can reduce energy consumption by 30% to 70%. Singapore's overall recycling rate has increased over the years, to about 54% today.

In spite of these achievements, there is a need for more concerted long-term energy efficiency policies. We do not expect further significant energy intensity improvements through increased power generation efficiency or a major shift of our economy towards service industries. Market signals are sometimes too weak to promote energy saving practices even though the latter may be cost-effective over the project life cycle. This may be due to misaligned incentives and higher upfront costs. In addition, many do not realise the potential of energy efficiency and conservation. Practices such as overcooling and poorly-designed industrial facilities are still common.

As part of the E 2 Singapore plan, my Ministry, together with E 2 PO, will implement new measures to address these gaps. More details will be given at the coming Committee of Supply.

[2] Reduction in CO 2 emissions in 2006, compared to if the fuel mix remained at the 2000 levels.