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Dennis Tan Lip Fong: To ask the
Minister for the Environment and Water Resources whether the Government has any
plans to reduce greenhouse emissions from our oil refining industry and, if so,
what are these plans.
Reply by Minister Masagos Zulkifli:
1. Under the Paris Agreement, Singapore has
pledged to reduce our emissions intensity by 36% from 2005 levels by 2030, and
to stabilise our emissions with the aim of peaking around 2030. To achieve
this, we have to make our economy more carbon efficient.
2. The industry sector, in particular the energy
and chemicals (E&C) sector, is an important pillar of Singapore’s economy. The E&C sector contributes to about 3% of
our GDP and employed about 26,000 workers in 2018. However, the industry sector
is also a significant source of greenhouse gas emissions, contributing about 60%
of Singapore’s total emissions in 2017. Around three-quarters of the industry
sector’s emissions are from the refining and petrochemicals sector.
3. Improving industrial energy efficiency is thus
a key pillar of our strategy to reduce greenhouse gas emissions, and we have
put in place a set of comprehensive measures to achieve this. From 2019, facilities in the manufacturing, power generation, waste and water management sectors
which emit 25,000 tCO2e or more annually must pay the carbon tax. The current tax rate is set at $5 per tCO2e
for the first five years. We will review
this by 2023, with the intention of raising the carbon tax rate to $10 to $15
per tCO2e by 2030, taking into account international climate change
developments, the progress of our emissions mitigation efforts, and our
4. In addition, since 2013,
large emitters are required under the Energy Conservation Act (ECA) to submit
annual energy efficiency improvement plans.
From 2021, these emitters must also establish facility-wide energy
management systems and conduct energy efficiency opportunities assessments, which
must be submitted to the NEA. To incentivise companies to adopt more energy
efficient technologies, the Government also provides funding support which has
been increased from the previous cap of 30 percent to 50 percent of the
qualifying costs since January 2019.
5. For the oil refineries in particular, the
Government works closely with the sector to ensure that they achieve high
standards of energy efficiency and adopt sustainable practices. Currently, all
three oil refineries in Singapore have set up co-generation plants in their
facilities. These are major investments that significantly improve the energy
efficiency of the refineries.
6. Beyond particular sectors or industries, all of us have a responsibility to reduce our carbon
footprint. Saving electricity, using
public transport and reducing waste are good ways to cut carbon emissions. All of us can do our part to help address
Last updated: 04 Feb 2020
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