The Sustainable Development Blueprint sets a target to reduce their energy intensity (per dollar GDP) by 20% from 2005 levels by 2020, and by 35% from 2005 levels by 2030. Singapore is also targeting to reduce GHG emissions by 16% below BAU level by 2020. Singapore’s key strategy to reduce greenhouse gas emissions is to be more energy efficient. In support of overall intensity reduction, the Building and Construction Authority sets out ambitious plans to accelerate its green building agenda and meet the targets of greening 80 % of the buildings (by gross floor area) in Singapore by 2030.

In order to help Singapore to achieve the targets, National Environmental Agency (NEA) has established the Energy Efficiency Programme Office (E2PO) for promoting energy efficiency in the various sectors through the Energy Efficient Singapore (E2 Singapore) policies and measures.

The Sustainable Singapore Blueprint (2009-2030) was launched by the Inter-Ministerial Committee on Sustainable Development in 2015, that serves as the umbrella framework for EE initiatives in Singapore and has set a target of 20% and 35% energy intensity reduction by 2020 and 2030 respectively. The Energy Conservation Act (ECA) was introduced in 2013 and amended in March 2017 to mandate energy management requirements for energy-intensive users (companies consuming 54 TJ or more of energy per year). The main requirements of Energy Conservation Act include the appointment of energy managers, reporting of greenhouse gas emissions and energy use, and submission of energy efficiency improvement plans.

The Singapore Minister for Finance announced at Budget 2017 to introduce a carbon tax starting from 2019. The tax will be applied on facilities that annually emit 25,000 tCO2e or more of greenhouse gas (GHG) emissions. The tax will start at $5/tCO2e in from 2019 to 2023 and intended to increase to $10/tCO2e and $15/tCO2e by 2030.

According to The Ministry of Trade and Industry and National Environment Agency, Singapore cited energy consumption per GDP information which provided by IEA. The IEA has stripped away marine bunkers from its calculation of Singapore’s energy consumption. Singapore is well known as the largest marine bunkering center in the world.

According to The National Environment Agency, power generation sector is having the major contribution for emission reduction. Figure 5 below is showing potential emission reduction by each sector on 2020 BAU levels:


 Sectoral contributions to emission reduction

Source: National Environment Agency


In term of monetary saving, Industrial is the most potential sector in Singapore as referred by E2PO Singapore. The following industries as shown in Figure 6 below have the highest potential for energy efficiency improvements mainly due to their large sizes and high energy intensity.


Saving Potential for industrial energy efficiency in Singapore (2015)

Source: E2PO Singapore


  • Chemical: Energy usage in heating and cooling process in chemical industry is reaching 80%. The largest consumer of electricity amongst all industries.
  • Pharmaceutical and Biotech: Areas of focus are in High Voltage Alternating Current which forms 65% of energy use on this industry sector
  • Electronics: Process tools in this industry forms 30 to 40% of energy use.
  • Environment and Water: A large proportion of the energy in this industry is consumed by pumps. As Singapore increases the use of seawater desalination as its water source, the energy intensity of this industry is due to increase. However, percentage of energy use on this sector has not been quantified yet.

Energy Efficiency Programme Office (E2PO) has identified the following implementations to develop a holistic energy efficiency plan for Singapore:

  1. Promote the adoption of energy efficient technology and measures by addressing the market barriers to energy efficiency;
  2. Build capacity to drive and sustain energy efficiency efforts, and develop the local knowledge base and expertise in energy management;
  3. Raise awareness and reach out to the public and businesses to encourage energy efficient behavior and practices; and
  4. Promote R&D to enhance Singapore’s capability in energy efficient technologies.


As the industrial sector makes up about half electricity consumption share, the vast opportunities for energy efficiency improvements are plausible. The required investment for industrial energy efficiency in 2015 is estimated at USD 397 million to USD 739 million, depending on policies and demand push. Singapore has various financial schemes to finance EE projects such as the E2F) for the industrial sector and the GMIS for the building sector. The range of market potential is shown in Figure 7 below:


Required Investment in industrial energy efficiency based on scenario

Source: E2PO Singapore


The E2PO is a multi-agency committee that jointly promotes and facilitates the activities of energy efficiency in Singapore. Table 1 below is showing whole of related government entities to improve energy efficiency in Singapore:


Related government entities to improve energy efficiency in Singapore

Source: E2PO Singapore


Since 2017, National Environment Agency (NEA) established Energy Efficiency Fund (E2F). The objective of E2F is supporting industrial companies to design resource efficient facilities, conduct energy assessments to identify energy efficiency measures, and adopt energy efficient equipment or technologies. The Energy Efficiency Fund (E2F) supports the following implementations on business to improve energy efficiency of industrial facilities:

  1. Resource Efficient Design
    Companies setting up new industrial facilities in Singapore are encouraged to integrate energy and other resource (e.g. water, gas) efficiency improvements into the design of the facility. Design workshops are focused and collaborative efforts to design facilities to be energy efficient. The E2F co-funds up to 50% of the cost of a design workshop or USD 600,000 whichever is lower.
  2. Energy Assessment of Existing Facilities
    Companies are encouraged to carry out energy audits on operating industrial facilities to identify and quantify areas where energy savings can be made and estimate the amount of savings achievable. The E2F co-funds up to 50% of the costs of such energy audits, subject to a cap of USD 200,000.
  3. Energy Efficient Equipment
    Companies operating new and existing manufacturing facilities are encouraged to invest in energy efficient equipment or technologies. The E2F co-funds up to 30% of the investment cost of energy efficient equipment or technologies