Singapore energy-intensive buildings must reduce energy consumption under changes to law. (Photo: iStock)
To reduce the carbon emissions of buildings, the Singapore government has implemented mandatory measures. Starting from the third quarter of next year, high-energy-consuming large buildings in Singapore must adopt energy-saving measures and reduce their energy consumption by 10% within the specified time frame, or face a fine of up to SGD 150,000 (about 116 thousand USD). The first batch of affected buildings is expected to be fewer than 100.
Mandatory energy improvement for high energy-consuming buildings
On Sept. 10, the Singapore Parliament passed an amendment to the Building Control Act, introducing the Mandatory Energy Improvement (MEI) scheme. This regulation applies to buildings with a gross floor area of 5,000 square meters or more, including commercial buildings, medical facilities, institutional sites, sports, and leisure centers.
Under the new regulation, building owners must submit Energy Use Intensity (EUI) data. If a building exceeds the energy consumption threshold for three consecutive years, it will be classified as energy-intensive and required to submit an improvement plan, with EUI needing to be reduced by at least 10%. Generally, these buildings fall within the top 25% of energy consumption in their respective categories.
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Singapore Parliament passed an amendment to the Building Control Act on Sept. 10. (Photo: Pixabay)
Building carbon emissions account for 20% of national emissions
Senior Minister of State for National Development Sim Ann pointed out that buildings contribute to 20% of Singapore’s national carbon emissions and account for one-third of electricity consumption. Therefore, there is significant room for improvement in greening the building environment. Currently, nearly 60% of buildings meet the basic environmental sustainability standards by floor area, and the government aims to increase this figure to 80% by 2030.
Non-compliance with the regulations will result in fines ranging from SGD 10,000 to SGD 150,000 (about 7 thousand to 116 thousand USD). Continued non-compliance may incur additional daily fines of up to SGD 1,000 (about 7 hundred USD).
As Singapore gradually increases its carbon tax, it is expected to raise the cost for power companies, which will be reflected in electricity prices. Therefore, the government hopes that this new system will require building owners to reduce energy consumption first, thus mitigating the impact of subsequent electricity price hikes.
Regarding concerns that the improvement measures for large buildings may raise initial costs, Sim Ann mentioned that these costs could be viewed as an investment. It is estimated that the savings on electricity bills over six years could offset the costs of building renovations. Additionally, she encouraged building owners to apply for the Green Mark Incentive Scheme for Existing Buildings 2.0 to seek up to 50% co-funding for collaborative efforts.
Source: The Straits Times, Business Times, Channel News Asia
