ENERGY-EFFICIENT BUILDINGS (Tax incentives for builders)

ENERGY-EFFICIENT BUILDINGS

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(Tax incentives for builders): **

18.

Dr Chong Weng Chiew asked the Minister for National Development if his Ministry intends to introduce greater tax incentives for builders to construct buildings which are more energy efficient.

Mr Mah Bow Tan: Both the Building and Construction Authority (BCA) and National Environment Agency (NEA) have in place various schemes to require or promote energy efficiency in new and existing buildings.

Since 1979, energy conservation standards have been part of the building design requirements in the Building Control Regulations. These are minimum standards of energy efficiency that all new buildings must comply with. The standards are regularly reviewed to keep pace with technological developments.

Apart from regulatory requirements, there are a number of incentives to encourage energy efficient buildings. Energy efficiency is a key assessment area under BCA's newly launched Green Mark scheme to promote environment-friendly buildings. The scheme is open to both new and existing buildings, and accords recognition to developers and building owners for building and maintaining environment-friendly buildings.

Achieving the Green Mark status will not only help them save on the costs of operating their buildings, but help to raise the profile and hence, value of their properties.

The NEA also has measures to promote energy efficiency in existing buildings. Its Energy Efficiency Improvement Assistance Scheme encourages and provides funding for private sector building owners and manufacturers to carry out energy appraisals. NEA is also working with Government agencies in a pilot project to engage energy services companies to implement energy saving measures.

Beyond the schemes of the Government, builders and building owners themselves must realise that they have much to gain by having energy-efficient buildings. Environment-friendly buildings require less energy and water to operate, and can generate significant savings. Nanyang Polytechnic, who is also a Green Mark award winner, has saved $2 million over five years by adopting "green" technologies and environment-friendly practices in managing its campus.

In a highly urbanised city-state like Singapore , having energy-efficient buildings is one important contributor to having a cleaner environment. Builders and building owners must see it as both their responsibility and contribution, to help create a desirable environment for Singapore residents to live, work and play in.

The way forward is to have more energy efficient buildings. The way to get there will require the efforts of both the Government and the private sector.